Current Affairs for UPSC: Economy banking and finance from November Week1

MrunalCurrent Affairs1 Comment

Mrunal’s UPSC GSM3-2020 Model Answer lecture: Science Technology, Internal Security Border Management Questions from last Mains Exam Solved!
  • 1A2-Monetary Policy: – Petrol diesel price cut: First time cut in 3 years: Petrol excise duty down by Rs 5/litre, diesel by Rs 10/litre. New prices in Delhi: Petrol 110, Diesel 98. Reason for tax cutting: 1) GST collection improved so Excise could be ⬇️ without hurting poverty welfare schemes 2) UP Election 3) farmer diesel generator usage in Rabi/winter season. (उत्तर प्रदेश चुनाव से पहले केंद्र सरकार ने पेट्रोल डीज़ल के उत्पाद शुल्क में की कटौती)
  • 1A2-Monetary Policy: – RESERVE Bank’s Prompt Corrective Action (PCA) framework: to supervise banks. Banks will be classified on risk threshold and accordingly RBI can punish them. BEFORE- 3 criteria for monitoring: (BASEL) Capital, asset quality (NPA), return on assets (Profitability). REFORM FROM 2022: 3 criteria for monitoring: Capital, asset quality and leverage. (Meaning “return on assets” is removed). 2) Payments banks and small finance banks (SFBs) removed from the PCA monitoring list. (रिज़र्व बैंक की त्वरित सुधार कार्यवाही ढांचे में 2022 से कुछ बदलाव किए जाएंगे.)
  • 1B-Bank Classification & Loans🔪: – ⚾️📻⚾️🎙✋ Explained series When can PSU bank staff be probed for NPAs? We finished the thing yesterday for the technical guidelines are not important for the scope of exam। maximum utility is one liner in the bigger general topic of how to reduce non-performing asset?
  • 1B-Bank Classification & Loans🔪: – ⚾️📻⚾️🎙✋ RBI’S committee on asset reconstruction companies (ARCs) has recommended that ARCs should be allowed to participate in the Insolvency and Bankruptcy Code (IBC) process as a resolution applicant either through a security receipt (SR) trust or through an AIF (alternative investment fund) sponsored by them. All the technical reports of all the RBI committees are not important
  • 1B-Bank Classification & Loans🔪: – FINANCE Ministry’s staff accountability framework for NPA (non-performing asset) accounts up to Rs 50 crore in PSBs from 1/4/2022. If PSB Banker took bonafide business decisions to pass loan but it turned NPA then banker will be protected from undue inquiries/harassment by 3Cs — CBI (Central Bureau of Investigation), CVC (Central Vigilance Commission) and CAG (Comptroller and Auditor General). Previously the fear of 3C was discouraging the public sector bank managers from sanctioning big loans (in the aftermath of TBS, Mallya, Nirav Modi). Bankers had become extremely cautious and risk averse even in case of bonafide corporate loans. This resulted in stalling credit deployment harming economic growth. (सरकारी बैंक और लोन पास करने से डरते हैं क्योंकि उन्हें तो CBI, CVC, CAG की कार्रवाई का डर लगता है तो अब वित् मंत्रालय ने कुछ नए दिशा निर्देश जारी किए हैं ताकि ईमानदारी से लिए गए फैसलों में अगर लोन का पैसा वापस न आए तो ईमानदार बैंकर पर अनावश्यक रूप से कोई कार्रवाई न हो)
  • 1d⚰️Insurance-Pension-Fin-Inclusion: – ⚾️📻⚾️🎙✋ HOME MINISTER Amit Shah launched Ayushmaan CAPF scheme healthcare scheme for the personnel of the Central Armed Police Forces (CAPF) and their families. Already covered in Mrunal’s Win21 Series Pillar1D.  ( (ये हम लोग पहले ही पढ चुके हैं)
  • 2-Budget-Taxation💼: – ⚾️📻⚾️🎙✋ Cairn Energy PLC has agreed to drop litigations to seize Indian properties in countries ranging from France to the UK as it has accepted the Indian government’s offer to settle tax dispute relating to the levy of taxes retrospectively. DONE IN Mrunal’s Win21 series last lecture. REF: (
  • 2-Budget-Taxation💼: – ⚾️📻⚾️🎙✋ GST collection surges to Rs 1.30 lakh cr in Oct, 2nd highest ever Very much in line with trend in economic recovery. + uski explained Series= Let the next year’s economic survey come.
  • 2-Budget-Taxation💼: – INDIA’S INFORMAL economy has shrunk to around 15-20 per cent of the formal GDP as against 52 per cent three years ago following the adoption of GST, enhanced digitalisation, and demonetisation, says SBI report, although some critics disagree with this. (भारत की GDP में अनौपचारिक क्षेत्र का हिस्सा कम हुआ है और औपचारिककरण बढ़ा है GST, डिजिटल भुगतान, नोट बंदी के चलते )
  • 2-Budget-Taxation💼: – ⚾️📻⚾️🎙✋ INCOME Tax Department has rolled out a new Annual Information Statement (AIS) which includes additional categories of information.
  • 3A-Intl-Trade🤝: – ⚾️📻⚾️🎙✋ US Taper set to begin: US Fed unveils bond-buying plan. We’ll see it in Mrunal’s Win22 series free lectures next year.
  • 5-Infra-Energy🔌: – In offshore oil/gas fields it is extract oil and gas. If ONGC partners with foreign players with the requisite technology and expertise →it could help boost production and recoveries from such fields. So, PETROLEUM Ministry has asked state-owned Oil and Natural Gas Corporation (ONGC) to consider offering up to a 60 per cent stake and operating rights over parts of key Mumbai High and Bassein and Satellites (B&S) oil and gas producing fields to foreign companies to boost production. (सरकार ने ONGC को कहा है कि बॉम्बे हाई में अब विदेशी कंपनियों के साथ सहयोग भागीदारी करें ताकि ज़्यादा ऑयल गैस का खनन हो सके)
  • 5-Infra-Energy🔌: – Suggestion for creation of an Ministry of Energy to oversee the currently siloed verticals of the ministries of petroleum, coal, renewables and power.
  • 5-Infra-Energy🔌: – “Lithium is one of the very few elements that is not used by biology or plants at all (unlike). So signals from growing or dying plants don’t affect lithium. So, basically, Li is a tracer that only is affected by weathering and nothing else. (पशु पक्षी और वृक्षों के जीने मरने से फॉस्फोरस नाइट्रोजन ऑक्सिजन कार्बन इत्यादि तत्वों की मात्रा में वृद्धि यह गिरावट हो सकती है लेकिन लीथियम ऐसा नहीं है।)
  • 5-Infra-Transport⚓️: – GSM3/Agro Transport Issues: THE RAILWAYS has raised a red flag over the rising operational costs of its Kisan Rail service which gives 50% subsidy for farmers for transportation of their produce, Rail ministry has told the food processing ministry that they will require at least three times the funding allotted. Points to reflect: 😍 Positive: agro production growing, more and more agriculture produce is getting transported / exported through railway. 😥 Negative / way forward : 1) should do better financial planning 2) encourage inland waterways 3) avoid excessive populism. (रेलवे मंत्रालय की कृषि रेल जहाँ पर कृषि उपज के परिवहन पर सब्सिडी दी जाती है हालाँकि सब्सिडी का पैसा अब कम पड़ रहा है यानी कि भारत का कृषि उत्पादन पहले से ज़्यादा बढ़ा है, और उसे रेलवे द्वारा भेजा जा रहा है। किन्तु साथ ही साथ अंतर्देशीय जलमार्ग परिवहन को भी प्रोत्साहन देना चाहिए और अनावश्यक रूप से लोक लुभावन में ज़रूरत से ज़्यादा सस्ते दामों पर रेलवे को नहीं चलाना चाहिए। )
  • – MGNREGA problems highlighted by civil society groups: 😥 1) insufficient allocation and delayed payments. 2021: Out of the total allocation of Rs 73,000 crore, over Rs 17,000 crore will be used just to pay off the payments to rural poor for the work they did in the last financial year. 😥 2) DEMAND SUPPRESSION: as per MGNREGA Act: A) work should be provided within 15 days of demanding it, failing which the workers are entitled to an unemployment allowance. B) workers should be paid within 15 days of completion of work, failing which they are entitled to compensation for the delays. But neither A or B implemented in letter and spirit in real life so. Consequently poor people migrate to urban areas even if less wages available- because they feel that in the private sector employer will at least pay on monthly basis and they will not have to wait for the entire year! 😥 3) CASTE-BASED PAYMENT DELAYS: March 2021, the Centre came out with a circular asking state governments to send three separate bills for money release a) SC, b) ST, c) Other categories. Critics argue that i) it increases the workload of lower bureaucracy in the paper document preparation ii) worker from non-SC/ST not getting payment on time (perhaps because govt doesn’t have enough money to pay everyone on time so priority given to SC/ST workers)→ resulting in the caste-based tension at job site. (मनरेगा योजना में तीन बड़ी समस्याएं- १) वक़्त पर मज़दूर भुगतान नहीं किया जाता २) वक्त पर काम नहीं दिया जाता और बेरोज़गारी भत्ता भी नहीं दिया जाता, जिसके चलते मज़दूर शहरों में चले जाते हैं बड़े वहाँ तनख़्वाह कम मिलती है क्योंकि कम से कम वक़्त भी तो मिल जाती है ३) केंद्र सरकार ने नया नियम बनाया कि राज्यों ने तीन अलग अलग दस्तावेज़ भेजने होंगे एससी, एसटी और अन्य समुदाय के भुगतान के लिए। आलोचक बता रही है की इस प्रकार के कागज़ी वर्गीकरण के बाद ग़ैर एससी-ग़ैर-ST मज़दूरों को देरी से भुगतान किया जाता है (क्योंकि सरकार के पास पैसा कम है), इसके चलते गाँव में जाति आधारित तनाव बढ़ रहा है।

Indian History Freedom Struggle Pratik Nayak

One Comment on “Current Affairs for UPSC: Economy banking and finance from November Week1”

Leave a Reply

Your email address will not be published. Required fields are marked *