Banking & Finance, August 30th, 2018, Current Affairs PDF Download

BANKING & FINANCE

99.30% of demonetized money worth Rs.15.31 lakh crore back in the system: RBI annual report
On August 30, 2018, in the annual report published by RBI, it announced that 99.30% of all of the demonetized currency notes have been counted and accounted for by the central bank.

Key Points in the Annual Report:
i. Rs 15.31 lakh crore worth currency notes have now been returned, since November 8, 2016.
ii. The total worth of notes that was in circulation at the time of demonetization was : Rs 15.41 lakh crore
iii. Rs 10,720 crore of the currency did not return to the banking system.
iv. This amount has been shifted to the central bank’s ‘Other Liabilities and Provisions’ segment from the earlier ‘Notes issued’ segment which was a part of liability.
v. Post-demonetisation, RBI spent Rs 7,965 crore in 2016-17 on printing new Rs 500 and Rs 2,000 and other denomination notes, more than double the Rs 3,421 crore spent in the previous year.
vi. In 2017-18 (July 2017 to June 2018), it spent another Rs 4,912 crore on printing of currency.

Other News:
i. The notes that were allowed in the system after the ban were called : specified bank notes (SBNs)
ii. These were allowed to be deposited in banks with unusual deposits coming under income tax scrutiny.

India’s economic growth rate to grow at 7.4 per cent in 2018-19: RBI
On August 30, 2018, its annual report, RBI stated that India’s economic growth rate will grow at 7.4 per cent in the current financial year.

According to the report:
i. The reasons cited for better GDP are:

• Increased industrial activityand
• Good Monsson.

ii. According to the report, agricultural production is likely to remain strong.
iii. The headline inflation may increase in the remaining portion of the year.
iv. RBI will work toward the medium term target for retail inflation of 4 percent.

$375 Million Loan agreement signed by ADB & India to improve irrigation in Madhya Pradesh
On August 30, 2018, Government of India and the Asian Development Bank (ADB) signed a $375 million loan agreement to double farming incomes in Madhya Pradesh.

It would be done via The Madhya Pradesh Irrigation Efficiency Improvement Project.
Key Points:
i. It will cover 2 large irrigation systems: the Kundalia irrigation project, the existing Sanjay Sarovar Irrigation Project.
ii. The projects include developing 125,000 hectares of climate resilient and efficient irrigation networks.
iii. It would expand irrigation networks and system efficiency in more than 400 villages, benefiting over 800,000 people in Madhya Pradesh.
About ADB:
♦ Established in 1966.
♦ Members: 67 countries.

$250 Million Agreement signed by Government of India, Government of Rajasthan and World Bank to Support DISCOMS in Rajasthan
On August 29, 2018, the Government of India, the Government of Rajasthan and the WorldBank signed a $250 million Development Policy Loan (DPL) for Rajasthan.

Objective:
To improve the performance of its Electricity Distribution Sector under the State’s 24×7 Power for All program.
Key Points:
i. The name of the loan is : The Second Programmatic Electricity Distribution Reform Development Policy Loan.
ii. The loan from the International Bank for Reconstruction and Development (IBRD), has a 3-year grace period, and a maturity of 21 years.
iii. The agreement was signed by

• Mr. Sameer Kumar Khare, Joint Secretary, Department of Economic Affairs, Ministry of Finance,
• Shri P. Ramesh, Special Secretary, Government of Rajasthanand
• Mr. Hisham Abdo, Acting Country Director, World Bank India.

iv. This is the second in the series of two operations for Rajasthan’s electricity distribution sector. The first one was done in March 2017.
v. The Focus areas are:

• Strengthening Governance in the Distribution Sector in the State,
• MOU between the DISCOMs and the State Government,
• Performance Management System,
• providing incentives to employees for improving performance,
• Financial Restructuring by transferring amounts of the DISCOMs debt to the State,

World Bank:
♦ Headquarters: Washington D.C.
♦ CEO: Kristalina Georgieva.
♦ President: Jim Yong Kim.
♦ Subsidiaries: IBRD, IDA, IFC, MIGA, ICSID.

$346 Million Loan signed by Government of India and ADB to improve 419 km of State Highways in Karnataka
On August 30, 2018, the Asian Development Bank (ADB) and the Government of lndiasigned a $346 million loan to finance Karnataka State Highways lmprovement lll Project (KSHIP-lll).
i. This involves improvement of 419 kilometers of state highways to enhance connectivity to economic centers across 12 districts in Kamataka.
ii. The agreement was signed between:

• Shri Sameer Kumar Khare, Joint Secretary (Fund Bank and ADB), Department of Economic Affairs and
• Mr Kenichi Yokoyama, Country Director of ADB’s lndia Resident Mission.

iii. An existing road improvement project financed by ADB with a loan of $315 million is under implementation which will improve 615 kilometers of state roads.

About Karnataka State Highways lmprovement lll Project (KSHIP-lll):
i. It will upgrade about 419 kilometers of state highways to two- and four-lane.
ii. It will also strengthen the institutional capacity of the Karnataka Public Works, Ports, and lnland Water Transport Department.
ADB:
Headquarters: Manila, Philippines.

Germany sanctioned Euro 120 mn soft loan for Clean Ganga Mission: German Envoy
On August 30, 2018, German envoy Jasper Wieck on behalf of Germany announced grant of Euro 120 mn soft loan for Clean Ganga Mission to India through German Development Bank KfW .

Objective:
Sewage water treatment infrastructure in Uttarakhand.

Key Points:
i. The project would focus on:

• Extension and replacement of sewerage system (around 360 kilometres),
• Construction of sewage treatment plants of around 15 million litres per day (mld).
• Construction of 13sewage pumping stations.

ii. The purpose of the project is to reduce the inflow of untreated waste water in River Ganga and improve the water quality of the river.
Germany:
♦ Capital: Berlin.
♦ Currency: Euro.
♦ President: Frank-Walter Steinmeier.
♦ Prime Minister: Angela Merkel.