Current Affairs - 9 February 2017

General Affairs 

Narendra Modi targets Manmohan Singh: So many scams, not one stain, he knows how to shower with raincoat on

• 

  Amid uproar and protests, Rajya Sabha MPs from the Congress walked out of the House after Prime Minister Narendra Modi launched a direct attack on former Prime Minister Manmohan Singh over the latter's remarks on demonetisation in Parliament's last session.

  Speaking on the Motion of Thanks to President Pranab Mukherjee's address, Modi said in Hindi, "So many scams and yet his career is spotless. Only Doctor sahab (Manmohan Singh) knows the art of taking a shower with a raincoat on."

  Modi's remarks came in the context of major corruption headlines that marked the last few years of Manmohan Singh-led UPA government.

  Modi was also responding to Singh's "monumental mismanagement" speech on demonetisation in the Winter session of Parliament, the speech that initiated the Opposition's arguments in Parliament.

  "For almost 35 years, Manmohan Singh ji had a lot of influence on country's economic policies. No other economist in the country had such a powerful hold over India's economy for almost half of India's post-independence years," he said.

  As Modi continued with his tirade, an angry Congress walked out of Rajya Sabha. "If they breach decorum, they should have the courage to listen to the response as well," Modi said.

  "I do not want to speak," Manmohan Singh said when reporters asked him about Modi's remarks on him in Rajya Sabha.

  CONGRESS FURIOUS

  Outside Parliament, the Congress MPs were furious.

  "We walked out in protest. Such harsh and ugly comments are not acceptable. No Prime Minister in past has made such comments about a former PM. It is unbecoming of a PM to use such language for a former PM," former Finance Minister P Chidambaram said.

  "Look at his arrogance. He chooses to speak when everyone else is done and then makes unsubstantiated allegations," senior Congress leader Kapil Sibal said.

  "I don't have words to express my criticism of those remarks ," Sonia Gandhi's political advisor Ahmed Patel said.

Centre gives into Assam CM Sarbananda Sonowal's demand for repatriation of 6 IPS officers

• 

  Sarbananda Sonowal, the chief minister of Assam, has stepped up pressure on the Centre to repatriate six IPS officers of the state cadre.

  A request on the same was received by the Ministry of Home Affairs (MHA) a few days ago.

  According to sources in the ministry, the Centre has given into the state government's demand.

  HERE IS ALL YOU NEED TO KNOW:

  1. The Assam government recently wrote to the Home Ministry seeking repatriation of six IPS officers who are posted with the Intelligence Bureau (IB), the Central Bureau of Investigation (CBI) and other central agencies.
  2. The MHA is the nodal cadre controlling authority for the Indian Police Service. "There is a shortage of IG-level officers in Assam. We received a formal communication from the state government," a top official told India Today.
  3. The officers being repatriated with immediate effect include Anurag Tankha who is IG, National Investigation Agency, Harmeet Singh who is Joint Director, IB Srinagar, and Deepak Kumar who is IG Sashastra Seema Bal (SSB).
  4. Deepak Kedia, Additional Director in Enforcement Directorate, may also be relieved once Finance Ministry's clearance is obtained.
  5. "It is a normal practice for the state government to recall officers from central deputation for state administration. Centre usually does not say no to state's request," an official said.
  6. Repatriation of two officers will take time as one of them is undergoing training at the NDCC while another is with an agency which does not report to the MHA.
  7. The repatriation of these officers will create vacancies in central agencies. The Italian marines case was being handled by Anurag Tankha, while intelligence gathering in Jammu and Kashmir was handled by Harmeet Singh.

Parliamentary committee questions government over Pathankot attack investigation

• 

  Parliament Standing Committee on Home Affairs on Wednesday raised questions over Pathankot attack and series of events since then. The committee expressed it displeasure saying that the investigation by the National Investigation Agency (NIA) remains incomplete even after one year.

  According to recent report tabled in Parliament today, the panel commented that unless the investigation is complete at an early date, it will not be possible to answer the grave questions that were raised following the terror attack.

  Few questions raised by the committee:

  1. Why was no preventive action taken despite credible intelligence input that was received?
  2. Why was no action taken despite interception of communication between terrorists and their handlers?
  3. The committe also raised questions about the use of special forces (SF)? While the action taken indicates the use of special force (1Para), it is not clear whether the SF were actually deployed to neutralise the terrorist.
  4. The panel also raised questions about Pakistan's joint investigation team's visit.
  5. The committee also wanted to know if it it was insisted that Pakistan should allow an investigation team from India to visit the country to gather evidence and whether Pakistan agreed to the demand.
  6. It also asked if Pakistan did not agree to India's demand, then why was the Pakistan team allowed to visit?

North east girls trained under Delhi Police, ready for deployment

• 

  After vigorous training for a year, handling all latest weapons, firing AK-47, Insas in long range firing range , being tutored about all latest laws, toughened with martial arts and skillfully mastered hindi language, the North east girls from Delhi Police are ready for deployment.

  The newly trained 'Charlie's Angels' are ready for serving people of Delhi within two months after last leg of commando training .

  Tied up for their accommodation together in North West Delhi.

  They gave resounding thumping salute to the outgoing Commissioner of Police during send off parade in the midst of thousands civilians and police officials at the parade ground at Old Delhi, NPL line.

  "I was swelling with pride, when I saw them marching down in military rhythmic band, Delhi Police tum barte Jao" said Robin Hibu, Nodal officer for NE people.

  "Can't  believe my eyes, those hesitant girls from NE last year , now with tanned skin, smartly dressed saluting it's police chief amidst thunderous uproar of clapping" said Hibu.

Supreme Court's first ever notice to a sitting High Court judge for writing to PM accusing judges of corruption

• 

  In a first in judicial history, the Supreme Court has issued a contempt notice to a sitting High Court judge, initiating suo moto criminal proceedings.

  The Supreme Court has directed Calcutta High Court sitting judge CS Karnan to refrain from undertaking any judicial work.

  Justice Karnan has been accused of circulation of disparaging letters against sitting high court judges of the Madras High Court.

  Justice Karnan allegedly wrote about Supreme Court judges too in his letters to the Prime Minister's Office.

  In his letters, Justice Karnan accused several sitting and retired judges of high courts and Supreme Court of corruption.

  The apex court has asked Justice CS Karnan to appear before it on February 13.

  The court has also directed Justice Karnan to return all judicial and administrative files in his possession to the Registrar General of Calcutta High Court.

  The apex court has asked its Registry to furnish a copy of the order to Justice Karnan during the course of the day.

  INSIDE THE COURTROOM

  Attorney General Mukul Rohatgi called the public communications of Justice Karnan "slanderous" and "disparaging" to the system of administration of justice.

  The Attorney General told a special bench of seven judges, comprising Chief Justice of India JS Khekar, that "time has come to take action and set an example". He said "people of the country must not think that the judiciary cannot take an action against its own". 

  To this, CJI Khekar said "we must be very careful as we are setting an example", and said the bench "must seek assistance from the bar. 

  "We must look into the issue of what we can do and if found guilty what will be the punishment," said Chief Justice Khekar.

  Justice Karnan must come before the court and clarify, the special bench said and posted the matter for hearing on February 13.

Business Affairs 

No cash withdrawal limit on savings account from March 13

• 

  The Reserve Bank of India (RBI) on Wednesday said that it has decided to enhance the withdrawal limit on saving accounts from February 20.

  Keeping up with the pace of remonetisation, the RBI has decided to enhance the withdrawal limit on saving accounts in two phases. From February 20, 2017 the limit on cash withdrawal will be enhanced to Rs 50,000 per week and from March 13, 2017, there will not be any limit on cash withdrawals, RBI said.

  Earlier, the central bank had partially restore status quo ante on cash withdrawal limit for current accounts from February 1. The limit on cash withdrawals were brought in by the RBI after Prime Minister Narendra Modi announced demonetisation on November 8, 2016.

  RBI said the currency in circulation was worth Rs 9.92 lakh crore as on January 27.

  While addressing the press conference after RBI announced its decision to keep the repo rate unchanged, RBI Governor Urjit Patel said, "there is still scope for lending rates of banks to come down."

RBI's monetary policy committee keeps repo rate unchanged at 6.25 per cent

• 

  The Reserve Bank of India (RBI) on Wednesday kept its repo rate unchanged at 6.25 per cent against a widely-anticipated cut of 25 basis points.

  "On the basis of an assessment of the current and evolving macroeconomic situation at its meeting today, the Monetary Policy Committee or MPC decided to keep the policy repo rate under the liquidity adjustment facility or LAF unchanged at 6.25 per cent," RBI press statement said. 

  Consequently, the reverse repo rate under the LAF remains unchanged at 5.75 per cent, and the marginal standing facility or MSF rate and the Bank Rate at 6.75 per cent. 

  It further said: "The decision of the MPC is consistent with a neutral stance of monetary policy in consonance with the objective of achieving consumer price index or CPI inflation at 5 per cent by Q4 of 2016-17 and the medium-term target of 4 per cent within a band of +/- 2 per cent, while supporting growth." 

  In line with pace of remonetisation, the RBI has decided to enhance the withdrawal limit on saving accounts in two phases. From February 20, 2017 the limit on cash withdrawal will be enhanced to Rs 50,000 per week and from March 13, 2017, there will not be any limit on cash withdrawals, RBI said.

  RBI Governor Urjit Patel said that there was still scope for lending rates of banks to come down.  

  Here are RBI's Assessments
  Global  growth  is  projected  to  pick  up  modestly  in  2017,  after  slowing  down  in  the year gone by. Advanced economies or AEs are expected to build upon the slow gathering of momentum that started  in  the  second  half  of  2016,  led  by  the  US  and  Japan.  However, uncertainty surrounds  the direction of US macroeconomic  policies with potential global spillovers. Growth prospects for emerging market economies or EMEs  are  also  expected to improve moderately, with recessionary conditions  ebbing  in  Russia  and  Brazil,  and  China stabilising on policy stimulus. Inflation is edging up on the back of rising energy prices and a mild firming  up  of  demand. However,  global  trade  remains  subdued due  to an increasing tendency towards  protectionist  policies and  heightened  political  tensions.  Furthermore, financial  conditions are  likely  to  tighten  as  central  banks  in  AEs  normalise  exceptional accommodation in monetary policy.
  

  International   financial   markets turned   volatile   from   mid-January   on concerns regarding  the  'Brexit' roadmap and materialisation  of  expectations  about  economic  policies of  the  new US administration. Within  the  rising  profile  of  international  commodity  prices, crude  oil  prices  firmed  up  with  the  OPEC's  agreement  to  curtail  production.  Prices  of  base metals have also increased on expectations of fiscal stimulus in the US, strong infrastructure spen ding   in   China,   and   supply reductions. Geopolitical   concerns   have   also   hardened commodity  prices.  More  recently,  the  appetite  for risk has  returned in  AEs,  buoying  equity markets and  hardening  bond  yields  as  a  response  to  the growing likelihood  of  further increases  in  the  Federal  Funds  rate  during  the  year.  Coupled  with  expectations  of  fiscal expansion in the US, this has propelled the US dollar to a multi -year high.

  The Central  Statistics  Office  (CSO)  released  its advance  estimates  for  2016 -17  on January 6, plac ing India's real GVA growth at 7.0 per cent for  the  year,  down  from  7.8  per cent  (first  revised  estimates  released  on  January  31)  a  year  ago. Agriculture  and  allied activities posted  a  strong  pick-up, benefit ing  from  the  normal  south -west  monsoon,  robust expansion  in rabi acreage (higher  by  5.7 per  cent  over  the  preceding  year)  and  favourable base effects as well as the continuing resilience of allied activities. In contrast, t he industrial sector  experienced  a  sharp  deceleration,  mainly  due  to  a  slow down  in  manufacturing  and  in mining  and  quarrying.  Service  sector  activity  also  lost  pace,  concentrated  in  trade,  hotels, transport and communication services, and construction, cushioned to some extent by public administration and defence.

  Industr ial out put measured by the index of industrial production (IIP) finally shrugged off the debilitating drag from insulated rubber cables from November and was also pushed up by a favourable base effect. In December, the output of core industries accelerated on a y ear -on-year as well as on a sequentially seasonally adjusted basis. The drivers of the upturn were steel  production  and  petroleum  refinery  throughput,  the  former, inter  alia,   supported  by import  tariff  safeguards  and  the  latter  buoyed  by  external  demand.  T he  acceleration  in  coal production and thermal electricity generation since November after three consecutive months of  contraction augur  well  for  the  outlook  for  power.  Reflecting  these  developments,  the manufacturing purchasing managers' index (PMI) retur ned to expansion mode in January on the back of growth of new orders and output, and the future output index has risen strongly. On  the  other  hand,  the  76 th round  of  the  Reserve  Bank's  industrial  outlook  survey  suggests that  financing  conditions  facing  the manufacturing  sector  have  worsened  in  Q3  of  2016-17 and are expected to remain tight in Q4. This is corroborated by the sharp slow down in bank credit to industry and continuing sluggishness in the investment climate in some sectors.

  High frequency indicat ors point to subdued activity in the services sector, particularly automobile sales across all segments, domestic air cargo, railway freight traffic,  and cement production. Nevertheless, some areas stand out as bright spots, having weathered the transient effects  of  demonetisation  - steel  consumption;  port  traffic;  international  air  freight;  foreign tourist  arrivals;  tractor  sales ;  and, cellular  telephone  subscribers.  The  services  PMI  for January  2017  remained  in  retrenchment,  but  the  fall  in  output  was  the least  in  the  current phase of three consecutive months of contraction.

  Marking  the  fifth  consecutive  month  of  softening,  retail  inflation  measured  by  the headline  consumer  price  index  (CPI)  turned  down  sharper  than  expected  in  December  and reached  its  lo west  reading  since  November  2014.    This  outcome  was  driven  by  deflation  in the  prices  of  vegetables and  pulses. Some  moderation  in  the  rate  of  increase  in  prices  of protein -rich items - eggs, meat and fish - also aided the downturn in food inflation.

  Excluding food and fuel, inflation   has   been   unyielding   at   4.9   per   cent   since September.  While  some  part  of  this  inertial  behaviour  is  attributable  to  the  turnaround  in international crude prices since October - which fed into prices of petrol and diesel embedded in  transport  and  communication - a  broad -based  stickin ess  is  discernible  in  inflation, particularly in housing, health, education, personal care and effects (excluding gold and silver) as well as miscellaneous goods and services consumed by households.

  The  large  overhang  of  liquidity  consequent  upon  demonetisation  weighed  on  money markets  in  December,  but  from  mid-January rebalancing  has  been  underway  with expansion of currency in circulation and new bank notes being injected into the system at an accel erated pace.  Throughout  this  period,  the  Reserve  Bank's  market  operations  have  been  in  liquidity absorption mode. With the abolition of the incremental cash reserve ratio from December 10, liquidity management operations have consisted of variable rate reverse repos under the LAF of tenors ranging from overnight to 91 days and auctions of cash management bills under the market  stabilisation  scheme  (MSS)  of  tenors  ranging  from  14  to  63  days.  The  average  daily net absorption  under  the  LAF  was Rs  1.6  trillion  in December, Rs  2.0 trillion  in  January  and Rs  3.7 trillion  in  February  (up to  Feb ruary 7) while  under  the  MSS,  it  was Rs  3.8  trillion, Rs  5.0 trillion and Rs  2.9 trillion,  respectively.  Money  market  rates  remained  aligned  with  the  policy repo rate albeit with a soft bias, with the weighted average call money rate (WACR) averaging 18 basis points below the policy rate during December and January.

  Turning  to  the  external  sector,  export  growth  remained  in  the  positive  zone  for  the fourth month  in  succession  in  December. Imports other  than  petroleum  oil  and  lubricants (POL ) came out of the spike in Nov ember and moderated in December. In contrast, there was an increase of over 10 per cent in POL import s,   in part reflecting the rise in international crude oil prices. Overall, t he trade deficit shrank both sequentially and on a year -on-year basis, being lower for  the  period  April -December by  US$  23.5  billion  than its  level  a  year  ago.  On  the whole, the  current  account  deficit  is  likely  to  remain  muted  and  below  1  per  cent  of  GDP in 2016-17. While the buoyancy in net foreign direct investment was sustained, there have been portfolio   outflows   beginning   October   on   uncertainty   relating   to   the   direction   of   US macroeconomic policies and expectations of faster normalisation of US monetary policy in the year ahead. Foreign exchange reserves were at US$ 363.1 billion on February 3, 2017.

Now, government allows multiple deposits of undisclosed income

• 

  The government has tweaked the Pradhan Mantri Garib Kalyan Deposit Scheme (PMGKDS) and now it allows tax payers to make multiple deposits under the scheme, it notified in a press release on Tuesday. This effectively means that people declaring their undisclosed income can deposit money in parts, under the scheme.

  Earlier, the scheme mandated that deposits were to be made only in single payment. However, the tax payers would need to make tax payment and put the money in the deposit before filing a declaration under PMGKY.

  The PMKGKY was proposed by the government in December 2016, one month after demonetisation. The declarant under the scheme was required to pay tax at 30 per cent of the undisclosed income, as well as a penalty at 10 per cent of the undisclosed income.

  Further, a surcharge to be called Pradhan Mantri Garib Kalyan Cess, at tax rate of 33 per cent tax was also proposed to be levied. In addition to the tax, surcharge and penalty (totaling to approximately 50 per cent tax on unaccounted deposits), the declarant were to deposit 25 per cent of undisclosed income in PMGKDS.

  With this scheme, the government wanted to give one more chance to people to declare their undisclosed income, following the closure of earlier income disclosure scheme. The recent move to allow multiple deposits, will make it possible for people who have under-reported their undisclosed incomes, to come clean before the deposit window under PMKKY closes on 31 March 2017.

Sensex, Nifty flat ahead of RBI's monetary policy review

• 

  Key benchmark indices continued to trade flat, with Sensex down 7 points and Nifty up 4 points in late morning trade after a tepid opening as investors awaited outcome of two-day monetary policy committee meeting later today amid bearish Asian cues.

  The Sensex opened higher at 28,386.08 and later drifted to 28,305.91. At 1100 hrs, the 30-share barometer was quoted marginally lower by 6.61 pts, or 0.02 per cent, at 28,328.55.

  The NSE 50-share Nifty was up 4.20 points, or 0.05 per cent, at 8,772.50 at 1100 hrs.

  Among the major losers were, Axis Bank 1.85 per cent, ITC 1.21 per cent, Infosys 0.88 per cent and Dr Reddy 0.71 per cent.

  However, Cipla rose by 1.62 per cent, Wipro 1.33 per cent, Tata Motors 1.30 per cent, M&M 1.20 per cent, GAIL 1.09 per cent and TCS 1.08 per cent.

  Meanwhile, Foreign portfolio investors (FPIs) bought shares worth a net Rs 201.13 crore yesterday, as per the provisional data released by the stock exchanges.

  Domestic institutional investors (DIIs) also bought shares worth a net Rs 1,620.03 crore as per the provisional data.

  Overseas, Asian shares dipped on lingering political and economic uncertainty in the United States and Europe which sapped investor confidence.

US lobby group ranks India among the lowest in IP friendliness

• 

  A report brought out by the Global Intellectual Property Center (GIPC) of the US industry and business lobby group - The US Chamber of Commerce - has ranked India as 43rd in a 45 country list on the basis of intellectual property (IP) environment.  

  It looks at parameters like patents, trademarks, copyright, trade secrets, enforcement, and international treaties to see how conducive they are for US companies to expand their businesses in countries that are covered in the report. India has been among the lowest rated countries ever since GIPC started off the annual exercise five years ago, as the country's IP rules are not perfectly aligned with the interests of large US corporations.

  GIPC prefers higher standards of IP protection than what is required to be followed by India because of its obligations under World Trade Organisation's (WTO) Agreement of Trade Related Aspects of Intellectual Property Rights (TRIPS). Incidentally, the other document GIPC has relied upon, the final text of Trans Pacific Agreement (TPP), to show how trade agreements have progressively raised the bar for IP standards around the world in a 21st century global marketplace, has been dumped by Donald Trump, the new President of United States.

  While the report acknowledges India's National Intellectual Property Rights Policy 2016, it complains that IP-intensive industries continue to face challenges in Indian market with regard to the scope of patentability for computer implemented inventions, section 3(d) of the Indian Patent Act (which denies patent protection to incremental innovations), and the Delhi High Court's decision to allow photocopying of copyrighted content for fair use.

  From the US companies' perspective, India's national IP policy does not address the fundamental weakness they perceive in India's IP framework. The GIPC says there is only limited framework for protection of IP in life sciences. The report finds India's patentability requirements outside international standards and opposes, what US Chambers' stakeholders consider as lengthy pre-grant opposition proceedings. It accuses India of having used the compulsory licensing provisions under the Patent Act for commercial and non emergency purposes.

  The report shows that India's overall score has increased marginally from 24 per cent (7.05 out of 30) in the fourth edition to 25 per cent (8.75 out of 35) in the fifth edition. This change in score reflects a relatively mixed performance in the 5 new indicators - patent opposition, industrial design, regulatory and administrative barriers and transparency and public reporting - added in the fifth edition, it said.

  "In India, many of the same challenges to innovation remain," said David Hirschmann, president and CEO of GIPC. "Although India has made incremental progress, the government needs to build upon the positive rhetoric of its IPR policy with the substantial legislative reforms that innovators need. Reforms can improve its reputation as a destination for doing business, foreign businesses' ability to invest in and 'Make in India', and India's own innovative industries". He stated.

  The top ranking countries in the index, which covers countries that account for 90 per cent of global GDP, include the US, UK and Germany in that order. The three lowest ranking countries are Venezuela, Pakistan and India.

General Awareness

Sixth Bi-monthly Monetary Policy Review of RBI for 2016-17

• The Reserve Bank of India announced its sixth bimonthly monetary policy review for 2016-17, on February 8, 2017 and has maintained its status quo with key policy rate unchanged.

  • On the basis of an assessment of the current and evolving macroeconomic situation in the country, the Monetary Policy Committee (MPC) decided to keep the key rates unchanged.
  • The RBI Monetary Policy Committee (MPC) voted 6-0 in favor of the key rates, which is the third unanimous decision in a row since it was first set up in September 2016.
  • The next meeting of the MPC under the chairmanship of RBI governor Urjit Patel is scheduled on April 5 and 6, 2017.
  • Other members of MPC includes, R Gandhi, Deputy Governor RBI,. Michael Patra, Executive Director of RBI, Chetan Ghate, Professor, Indian Statistical Institute (ISI), Professor Pami Dua, Director, Delhi School of Economics (DSE), Ravindra H. Dholakia, Professor Indian Institute of Management (IIM), Ahmedabad.
  • The Committee said that the environment for timely transmission of policy rates to banks lending rates will be considerably improved if:
  • The banking sector’s Non-Performing Assets (NPAs) are resolved more quickly and efficiently.
  • Recapitalisation of the banking sector is accelerated.The formula for adjustments in the interest rates on small savings schemes to changes in yields on government securities is fully implemented.

  Key Policy Rates

  1. Repo Rate under the liquidity adjustment facility (LAF):6.25 percent (Unchanged)
  2. Reverse Repo Rate under the LAF: 5.75 percent (Unchanged)
  3. Marginal Standing Facility (MSF): 6.75 percent (Unchanged)
  4. Bank Rate: 6.75 percent (Unchanged)
  5. Cash Reserve Ratio (CRR): 4 percent (Unchanged)
  6. Statutory Liquidity Ratio (SLR): 20.50 percent (Unchanged)

  Definition of Key Rates

  Repo Rate
  It is the rate at which RBI lends money to commercial banks.

  Reverse Repo rate
  It is the rate at which RBI borrows money from commercial banks.

  Cash Reserve Ratio (CRR) 
  The share of net demand and time liabilities (deposits) that banks must maintain as cash balance with the Reserve Bank

  Statutory Liquidity Ratio (SLR)
  The share of net demand and time liabilities (deposits) that banks must maintain in safe and liquid assets, such as, government securities, cash and gold.

  Bank Rate
  Bank Rate refers to the official interest rate at which RBI will provide loans to the banking system which includes commercial / cooperative banks, development banks etc for a long term.

  Marginal Standing Facility Rate (MSF)
  The rate at which the scheduled banks can borrow funds from the RBI overnight, against the approved government securities is termed as MSF.

  RBI Key Projection

  Inflation

  RBI had projected the headline inflation at 5 percent in Q4 of 2016-17 in December.

  • In sixth bimonthly monetary policy review, RBI has projected the inflation to be in the range of 4% to 4.5% in the first half of 2017-18 and in the range of 4% to 4.5% in the second half of 2017-18.
  • The MPC aims to achieve consumer price index (CPI) inflation at 5 percent by Q4 of 2016-17.

  GDP Growth

  The RBI has projected GDP growth in the current fiscal at 6.9 percent. It expects the growth to recover sharply in 2017-18 and reach 7.4 percent.

  GVA Growth

  • RBI has projected the GVA growth for 2016-17 at 6.9 percent from the existing 7.1 percent.
  • Growth is expected to recover sharply in 2017-18 and accordingly, GVA growth for 2017-18 is projected at 7.4 percent.

  Current Account Deficit

  RBI has proposed the current account deficit (CAD) to remain below 1 percent of GDP in 2016-17.

  Cash withdrawal Limit

  • RBI has announced that from March 13, 2017, there would be no limit on cash withdrawal.
  • Besides, with effect from February 20, the withdrawal limit from savaing accounts will increase from Rs 24,000 a week to Rs 50,000 a week.

  RBI to Set up Enforcement Department to Monitor Bank

  The Reserve Bank of India on February 8, 2017 informed about its decision to set up a separate Enforcement Department to effectively monitor bank in case they violate regulations. The Enforcement Department will start operations from April 1, 2017. 

  • Presently, each department of RBI takes action against banks for violations of rules. With Enforcement Department, a centralized department would be set up to deal with the issue.
  • Besides, RBI has also proposed to set up a separate committee on cyber security.
  • The inter-disciplinary Standing Committee on Cyber Security will review the threats posed in the existing or emerging technology and also study the adoption of various security standards and protocols.
  • It will also look at interface with stakeholders and suggest appropriate policy interventions to strengthen cyber security and resilience.

  Reserve Bank of India

  • The Reserve Bank of India is India’s central banking institution, which controls the monetary policy of the Indian rupee
  • Headquarter: Mumbai Maharashtra
  • Founded: April 1, 1935, Kolkata
  • Governor: Urjit R Patel