Current Affairs - 22nd Jan 2014
Panel report on monetary policy framework
The expert committee formed by the RBI under the chairmanship of deputy governor of RBI Urjit Patel to examine the current monetary policy framework has suggested that the apex bank should adopt the new CPI(consumer price index) as the measure of inflation. The target for inflation should be set up at 4 percent with a band of +2/-2 % around it. The committee also asked the central government to ensure that the fiscal deficit as a ratio to GDP is brought down to 3.0% by 2016-17. It further recommended that the monetary policy decision making should be vested with the monetary policy committee under the chairmanship of RBI governor.
IMF predicts India’s growth rate
India is likely to achieve an economic growth at a rate of 4.6% this financial year and it may further improve to 5.4% in 2014-15 as per the predictions of International Monetary Fund (IMF). It is to be hereby noted that other international institutes like World Bank and ADB also give the growth forecast and are yet to announce it. As per the IMF the growth rate in 2015-16 is likely to be 6.4 percent.
RBI to set up Depositor Education and Awareness Fund
The RBI said that it would establish a fund called “Depositor Education and Awareness Fundwhich would consist of unclaimed funds of depositors. This fund will be pursuant to the amendment of The Banking Laws(amendment) act,2012, section 26A has been inserted in the banking regulation act,1949 that empowers RBI to establish such a fund. The fund will be created by taking over inoperative deposit accounts which have not been claimed or operated for ten years or more. The depositor,would be entitled to claim from the bank his deposit or operate his account after the expiry of ten years even after the amount is transferred to the fund.
Mineral production of India
The country's mineral production saw a 3.7 per cent jump in November last year over the preceding month on the back of higher coal, chromite, bauxite and iron ore output, with total value of the products recorded at Rs 17,163 crore.
Amul launches India’s first ‘milk ATM’
Automatic teller machines not only dispense money, ATM-like machines also vend other products such as chocolates and soft drinks. But Amul has gone a step further: it will now sell milk through “Any Time Milk” vending machines. The pilot project of this 24x7 ATM began with the installation of a vending machine at the gate of Amul Dairy in Anand town of Gujarat on Sunday. For a Rs 10-currency note, which this machine will read through a sensor, the ATM would dispense a 300 ml pouch of Amul Taaza milk. The ATM, fitted with refrigeration facility, has a capacity to hold 150 pouches at a time.
Govt. to overhaul foreign investment
In a major overhaul of foreign investment regime, the government is considering splitting overseas inflows into two categories – Foreign Portfolio Investment (FPI) and Foreign Direct Investment (FDI) – with a minimum composite cap of 49%. The proposal envisages an aggregate automatic limit of 24% of FPI, which may be raised up to the extent of FDI permitted under the automatic route. Constituting two categories for foreign investments is considered by Mayaram Panel (The government had set up a four-member committee headed by Economic Affairs Secretary Mayaram to define FDI and FII and remove the ambiguity between them. The Committee is expected to finalise its report by end of January 2014.
Establishment of Rail Tariff Authority
The Union Government allowed the establishment of an ad hoc authority to recommend the pricing of the passenger and cargo segments. the name of this authority is –Rail Tariff Authority (Rail Tariff Authority will have a Chairman and four members. The decision to have an ad hoc arrangement through a government resolution was taken because establishing it through an executive order, as had been desired by the Cabinet, was not feasible given that under the Railway Act only the Railway Board can decide on the prices of rail services. For constitution of the RTA, an amendment to the Railway Act, 1989, is also necessary).
