RBI’s $5 Billion Plan
Category: Economy
- The Reserve Bank of India’s $5 billion tool for liquidity creation is likely to result in faster transmission of interest rates in the banking system and improve liquidity in the banking system at a time when banks are hesitant to pass on rate cut benefits to customers and liquidity is still in deficit mode.
- RBI decided to inject rupee liquidity for three years through long-term foreign exchange Buy/Sell swap.
- Under this, the RBI will buy up to $ 5 billion from the market via auction and simultaneously sell it back to the same counterparties.
- Whatever amount of dollars get mopped up via these operations will reflect in the RBI’s foreign exchange reserves for the tenor of the swap while also reflecting in RBI’s forward liabilities.
- The RBI’s move to inject liquidity by swapping billion with rupees is aimed at improving the interest rate transmission in the economy.
- Injection of liquidity is likely to put downward pressure on interest rates in the economy, while at the same time preventing any sharp appreciation of the domestic currency on the back of increased foreign fund inflows.
National Health Authority
Category: Health
- The first meeting of the governing body of the newly constituted National Health Authority (NHA) is to take place today.
- NHA IS tasked with the implementation of the Pradhan Mantri Jan Arogya Yojana (PMJAY).
- The governing board of the NHA is chaired by the Minister for Health and Family Welfare and has among its members the CEO of Niti Aayog, Expenditure Secretary, the CEO of NHA, Health Secretary, domain experts and five principal secretaries (Health) of different State governments.
Rupee
Category: Economy
- The rupee has been steadily appreciating in recent days.
- Strong inflow in both debt and equity segments helped the currency to hit a six-month high against the dollar.
- The recent decision of the RBI for a currency swap to infuse rupee liquidity is expected to bring down hedging cost, prompting inflows.
Afghanistan
Category: International
- The Indian Institute of Technology – Madras, will assist Afghanistan’s higher education department to set up its own online courses platform.
- The collaboration would allow the sharing of the Indian government’s platform Study Webs of Active Learning for Young Aspiring Minds (SWAYAM), which offers free online courses, with Afghan students and academicians.
- The institute would also assist the educational institutions in Afghanistan to upload existing courses developed locally on the SWAYAM platform.
- Assistance would be given to the country to develop its own online courses platform.
- The agreement would allow Afghans to access the National Digital Library of India (NDLI), virtual labs and tutorials developed by the IITs.
FSDC
Category: Economy
- The Government formed the Financial Stability and Development Council in 2010.
- It was formed due to the tussle between SEBI and IRDA on the regulation of ULIPs.
- Basically, the activity of the Council is to coordinate financial and economic regulations through consultations of the heads of the various regulatory organizations.
- It is non-statutory body.
- The Chairman of the Council is the Finance Minister and its members include the heads of financial sector Regulators (RBI, SEBI, PFRDA, IRDA & FMC Finance Secretary and/or Secretary, Department of Economic Affairs, Secretary, Department of Financial Services, and Chief Economic Adviser.
NCLAT
Category: Economy
- National Company Law Appellate Tribunal (NCLAT) was constituted under the Companies Act, 2013. Thus, it is a statutory body.
- It was constituted for hearing appeals against the orders of National Company Law Tribunal(s) (NCLT), with effect from 1st June, 2016.
- NCLAT is also the Appellate Tribunal for hearing appeals against the orders passed by NCLT(s).
- NCLAT is also the Appellate Tribunal for hearing appeals against the orders passed by Insolvency and Bankruptcy Board of India.
- NCLAT is also the Appellate Tribunal to hear and dispose of appeals against any direction issued or decision made or order passed by the Competition Commission of India (CCI).
