Beepedia Monthly Current Affairs June 2024 PDF

Monthly BeePedia June 2024 INDEX RBI, Banking and Economy ___________________________________________ 2 SEBI and Financial Awareness _________________________________________ 12 NABARD and Agriculture __...

Monthly BeePedia June 2024 INDEX RBI, Banking and Economy ___________________________________________ 2 SEBI and Financial Awareness _________________________________________ 12 NABARD and Agriculture ___________________________________________ 18 National __________________________________________________________ 21 International _____________________________________________________ 26 States____________________________________________________________ 30 Reports and Indexes _______________________________________________ 36 Science and Technology ___________________________________________ 46 Defence __________________________________________________________ 51 Events ___________________________________________________________ 55 Awards & Rewards ___________________________________________________ 59 Appointments _____________________________________________________ 61 Important Days ___________________________________________________ 64 Obituaries_________________________________________________________ 66 Books ___________________________________________________________ 67 Sports ___________________________________________________________ 68 Download important documents:  Weekly & Monthly BeePedia: https://www.ixambee.com/beepedia-gk-updates- capsule?utm_source=ixamBee&utm_medium=header&utm_campaign=beepedia  Hindi Weekly & Monthly BeePedia: https://www.ixambee.com/hi/beepedia-gk-updates- capsule For feedback, please contact: Email id: [email protected] 1 | P a g e For All ixamBee Mock Tests , Please visit www.ixamBee.com Contact us at 92055 24028 (SMS/WhatsApp/call) or [email protected]  Monthly BeePedia June 2024 RBI, Banking and Economy RBI keeps repo rate unchanged, raises GDP forecast to 7.2%  RBI left the repo rate unchanged at 6.5% due to concerns over food inflation and revised the GDP growth projection for 2024-25 to 7.2%.  The CPI inflation projection for FY25 remains at 4.5%, expected to fall below 4% in the July-September quarter.  Monetary Policy Committee (MPC) maintained the policy rate at 6.5% for the eighth consecutive time, with a noted divergence in views among members regarding a rate cut.  The monetary policy stance remained at 'withdrawal of accommodation' by a 4:2 majority; two members voted for a 'neutral' stance.  Governor Shaktikanta Das emphasized the need for the monetary policy to remain disinflationary and committed to achieving a 4% inflation target.  Headline inflation is moderating but faces challenges from food inflation and input costs, with a forecast of CPI inflation at 4.9% in Q1, 3.8% in Q2, 4.6% in Q3, and 4.5% in Q4 of FY25.  GDP growth outlook remains positive, with the FY25 GDP forecast raised to 7.2%, indicating robust economic activity and sustained growth for the fourth consecutive year. Learn Along: About RBI Founded: 1 April 1935 Headquarters: Mumbai Governor: Shaktikanta Das RBI approves the voluntary amalgamation of The Yadagiri Lakshmi Narasimha Swamy Co-operative Urban Bank Ltd., Yadadri Bhuvanagiri (Telangana) with The Gayatri Co-operative Urban Bank Ltd., Jagtial (Telangana)  The Reserve Bank of India (RBI) has approved the Scheme of Amalgamation of The Yadagiri Lakshmi Narasimha Swamy Co-operative Urban Bank Ltd., Yadadri Bhuvanagiri, Telangana, with The Gayatri Co-operative Urban Bank Ltd., Jagtial, Telangana.  The amalgamation will come into effect on June 10, 2024.  Post-amalgamation, the branches of The Yadagiri Lakshmi Narasimha Swamy Co-operative Urban Bank Ltd. will operate as branches of The Gayatri Co-operative Urban Bank Ltd. from June 10, 2024. Reserve Bank of India launches its Third Global Hackathon – HaRBInger 2024  The Reserve Bank is organizing its third global hackathon, ‘HaRBInger 2024 – Innovation for Transformation’.  Participants are invited to develop solutions under two themes:  “Zero Financial Frauds”: Real-time prediction, detection, and prevention of frauds; ensuring transaction anonymity in CBDC transactions; identifying mule bank accounts/payment wallets.  “Being Divyang Friendly”: Accurately identifying banknotes for the visually impaired.  Participants will be mentored by industry experts and can exhibit their solutions before an eminent jury. Prizes include:  INR 40 lakh for the winner of each problem statement.  INR 20 lakh special prize for the best all-woman team.  INR 5 lakh stipend per team shortlisted for solution development. Outward FDI remain almost flat at $2.0 billion in May, shows RBI data 2 | P a g e For All ixamBee Mock Tests , Please visit www.ixamBee.com Contact us at 92055 24028 (SMS/WhatsApp/call) or [email protected]  Monthly BeePedia June 2024  Outward foreign direct investment (FDI) commitments were nearly flat at $2 billion in May 2024, compared to $1.98 billion in May 2023.  Sequentially, FDI commitments decreased from $2.78 billion in April 2024, according to RBI data.  Equity commitments rose marginally to $1.02 billion in May 2024 from $965.86 million a year ago, and significantly higher than $607.96 million in April 2024.  Debt commitments increased to $262.7 million in May 2024 from $225.5 million in May 2023, but were lower than $820.3 million in April 2024.  Guarantees for overseas units declined to $718 million in May 2024 from $797.5 million in May 2023, and were lower compared to $1.3 billion in April 2024. RBI Variable Rate Repo (VRR) Auction Announcement RBI to conduct a 3-day Variable Rate Repo (VRR) auction under LAF. Scheduled for June 18, 2024 (Tuesday). Notified amount: ₹1,00,000 crore. Tenor: 3 days. RBI Cancels Purvanchal Cooperative Bank’s Licence The Reserve Bank of India (RBI) has revoked the licence of Purvanchal Co-operative Bank, located in Ghazipur, Uttar Pradesh, citing inadequate capital and bleak earning prospects. Consequently, the Commissioner for Cooperation and Registrar of Cooperative Societies, Uttar Pradesh, has been instructed to initiate the bank’s winding-up process and appoint a liquidator. Upon liquidation, depositors will be eligible to receive up to Rs 5 lakh from the Deposit Insurance and Credit Guarantee Corporation (DICGC) as per their deposit insurance coverage. With the licence cancellation, Purvanchal Co-operative Bank is barred from conducting banking activities, including deposit acceptance and repayment. Learn Along: The Telecom Regulatory Authority of India is a regulatory body set up by the Government of India under section 3 of the Telecom Regulatory Authority of India Act, 1997. It is the regulator of the telecommunications sector in India. Deposit Insurance and Credit Guarantee Corporation is a specialised division of Reserve Bank of India which is under the jurisdiction of Ministry of Finance, Government of India. RBI's Foreign Currency Transactions in April 2024 Net Sale: $3.64 billion in April 2024. Purchases: $8 billion. Sales: $11.65 billion. Comparison to Previous Month March 2024: Net purchase of $13.24 billion in the spot market. RBI Launches Survey on International Trade in Banking Services (ITBS): 2023-24 The Reserve Bank of India (RBI) launched the 2023-24 round of the Survey on International Trade in Banking Services (ITBS). This annual survey, initiated in 2006-07, gathers data on financial services by branches, subsidiaries, and joint ventures of Indian banks abroad, and foreign banks in India. The survey focuses on services provided based on fees/commission charged to customers. Banks are required to fill out the survey schedule for their branches/subsidiaries/joint ventures operating abroad and those of foreign banks in India. Completed survey schedules should be emailed by July 31, 2024. 3 | P a g e For All ixamBee Mock Tests , Please visit www.ixamBee.com Contact us at 92055 24028 (SMS/WhatsApp/call) or [email protected]  Monthly BeePedia June 2024 APIX and RBI Join Forces to Drive Financial Innovation Through HaRBInger 2024 Hackathon  APIX announced its partnership with the Reserve Bank of India (RBI) to host the HaRBInger 2024 hackathon, aiming to develop solutions for financial security and inclusivity.  The hackathon focuses on Combatting Fraud and Financial Inclusion for the Differently-abled, addressing issues like real-time fraud detection, transaction anonymity, mule account identification, and empowering the visually impaired.  APIX, a trusted platform for major banks and regulators, empowers innovators with technologies like AI/ML, APIs, and Data Analytics to create impactful financial solutions.  The hackathon is open to individuals, teams, and enterprises globally, offering significant prizes: INR 40,00,000 (~USD 48,000) for each problem statement winner and INR 20,00,000 (~USD 24,000) for the best all-woman team. Learn Along: About APIX:  APIX is a collaborative innovation platform for fintechs and innovators across 90+ countries, empowering Financial Institutions to accelerate their innovation journey.  Major banks, insurers, and regulators in the world use APIX to rapidly discover, test, and evaluate solutions by running comprehensive innovation programs, which include innovation challenges and hackathons. India’s external debt rises $39.7 bn YoY to $663.8 bn: RBI data  India’s external debt at end-March 2024 was $663.8 billion, up by $39.7 billion from end-March 2023.  External debt-to-GDP ratio declined to 18.7% at end-March 2024 from 19.0% at end-March 2023.  Valuation effect due to U.S. dollar appreciation amounted to $8.7 billion.  U.S. dollar-denominated debt was the largest component at 53.8%, followed by Indian rupee (31.5%), yen (5.8%), SDR (5.4%), and euro (2.8%).  Loans were the largest component of external debt at 33.4%, followed by currency and deposits (23.3%), trade credit and advances (17.9%), and debt securities (17.3%). RBI announces the SAARC Currency Swap Framework for the period 2024 to 2027  RBI and Government of India have revised the Currency Swap Arrangement for SAARC countries for 2024-2027.  The RBI will enter into bilateral swap agreements with SAARC central banks seeking the facility.  The SAARC Currency Swap Facility started on November 15, 2012, providing short-term foreign exchange liquidity.  2024-27 Framework includes a new INR Swap Window with ₹250 billion support and concessions.  Separate US$/Euro Swap Window with US$ 2 billion corpus continues.  Facility is available to all SAARC member countries, subject to bilateral agreements. Learn Along: About SAARC Headquarters: Kathmandu, Nepal Establishment: 8 December 1985 Member states: 8 members: Afghanistan, Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan,Sri Lanka Axis Bank and Mastercard Introduce NFC Soundbox  Axis Bank, in collaboration with Mastercard, has launched the NFC Soundbox, a device capable of accepting Bharat QR, UPI, Tap & Pay, and Tap + Pin payments, making it the first bank in India to support Tap + Pin for transactions over Rs 5000.  The NFC Soundbox features dual confirmation capabilities, offering audio cues and visual feedback in over seven languages, enhancing the transaction experience for both merchants and consumers. 4 | P a g e For All ixamBee Mock Tests , Please visit www.ixamBee.com Contact us at 92055 24028 (SMS/WhatsApp/call) or [email protected]  Monthly BeePedia June 2024  This innovative device is equipped with 4G + WiFi connectivity, ensuring robust and seamless transaction processing, and supports deep integration with third-party applications.  It also includes a Dynamic QR feature that auto-fills the transaction amount when scanned by consumers. Learn Along: About Axis Bank MD and CEO: Amitav Chaudhary Headquarters: Mumbai Founded: 1993 Manufacturing sector’s growth lifts GDP to 8.2%  India's real GDP growth for FY24 significantly exceeded projections, reaching 8.2%, up from the 7% recorded in FY23, according to the National Statistical Office (NSO).  The growth in nominal GDP for FY24 was 9.6%, a decrease from the 14.2% observed in FY23.  Real Gross Value Added (GVA) for FY24 increased by 7.2%, outpacing FY23’s growth of 6.7%, primarily driven by a significant 9.9% growth in the manufacturing sector and 7.1% growth in mining and quarrying.  Real GVA and GDP growth for the fourth quarter of FY24 were estimated at 6.3% and 7.8%, respectively.  The divergence between GDP and GVA growth continued into Q4, highlighted by net taxes growing by 22%, which contributed to the overall GDP growth.  On the expenditure side, GDP growth was predominantly driven by strong government capital expenditures (capex).  Looking ahead, projections for FY25 anticipate a continuation of strong economic performance with an estimated GDP growth of around 7%. Goldman Sachs boosts India GDP forecast to 6.9% for CY24  Goldman Sachs has revised India's GDP growth forecast for the calendar year 2024 up by 20 basis points from 6.7% to 6.9%, following robust economic performance in the first quarter.  The upward revision is attributed to a stronger-than-expected GDP growth of 7.8% during the January-March 2024 quarter, driven by robust investment demand and recovery in consumption.  For the fiscal year 2024-25, Goldman Sachs projects India's GDP growth at 6.8%.  The Central Statistics Office (CSO) reported that India's GDP grew at an impressive rate of 8.2% in the fiscal year 2023-24, with significant contributions from the manufacturing sector.  Regarding the fiscal deficit, Goldman Sachs expects the Central government to meet the 2024-25 fiscal deficit target of 5.1% of GDP, helped by a higher-than-budgeted dividend from the Reserve Bank of India (RBI).  The government managed a fiscal deficit of 5.6% of GDP for 2023-24, lower than the revised estimate, through significant expenditure cuts and increased receipts, including a substantial RBI dividend of ₹2.1 lakh crore, well above the budgeted ₹1 lakh crore. Banks' credit growth in FY25 to slow down to 14% on lower GDP uptick, RBI measures: Crisil  Crisil forecasts a decline in the banking system's credit growth to 14% in FY 2024-25, a drop of 2 percentage points from the previous year.  The expected slowdown in credit growth is attributed to a projected lower GDP growth of 6.8% in FY25, compared to 7.6% in FY24.  Influencing factors include RBI's implementation of higher risk weights on unsecured loans and the effect of a high base year. 5 | P a g e For All ixamBee Mock Tests , Please visit www.ixamBee.com Contact us at 92055 24028 (SMS/WhatsApp/call) or [email protected]  Monthly BeePedia June 2024  Deposit growth lagging behind credit growth could further restrain the expansion of credit facilities.  The previous financial year (FY24) saw bank credit growth at 16%, adjusted for the HDFC merger, driven by robust economic activity and increased retail demand.  For FY25, credit growth is anticipated to be moderated due to the high base effect, revised risk weights, and slightly lower GDP growth projections. Board of Punjab National Bank approves dilution of 10% stake in Canara HSBC Life Insurance Company  Punjab National Bank (PNB) has received board approval to dilute 10% stake in Canara HSBC Life Insurance Company through an initial public offering (IPO).  This move is subject to regulatory approvals, and the specific modalities of the issue will be determined later.  The announcement follows Canara Bank's approval to dilute its 14.50% stake in the insurer.  The IPO requires approval from the Reserve Bank of India and the Department of Financial Services, Government of India.  Canara HSBC Life Insurance Company is a joint venture with Canara Bank holding 51%, HSBC Insurance (Asia Pacific) Holdings 26%, and PNB holding 23%.  This strategic move aims to unlock value and potentially raise capital for the participating banks. Learn Along: About PNB Chairman: K G Ananthakrishnan Established: May 19, 1894 Headquarters: New Delhi Bank Clinic  Bank Clinic launched by the All-India Bank Employees' Association (AIBEA) to guide retail customers about their rights and remedies.  Addresses customer grievances amidst technological advancements and RBI guidelines on retail banking.  Online Complaint Registration: Customers can lodge complaints on the Bank Clinic website.  Timely Response: Within five working days, customers receive detailed replies outlining remedies and relevant RBI guidelines.  Enhanced Customer Relations: Assists customers with complaint redressal, fostering goodwill.  Feedback Mechanism: Provides banks with valuable insights into service deficiencies for improvement. Learn Along About AIBEA:  A prominent national trade union, founded on April 20, 1946, in Kolkata, with headquarters in Chennai, representing bank employees across India. Netherlands Emerges as India’s 3rd Largest Export Destination in 2023-24  The Netherlands became India’s third-largest export market in FY 2023–24, following the US and UAE, despite a 3% decline in India’s total exports of goods.  Key export commodities to the Netherlands include petroleum products, electrical items, chemicals, and pharmaceuticals, with oil goods accounting for $14.29 billion in exports.  Trade between India and the Netherlands increased from $21.61 billion in 2022-23 to $22.36 billion in 2023-24, a 3.5% rise, with India’s trade surplus growing from $13 billion to $17.4 billion.  The Netherlands’ strategic location, efficient port infrastructure, and strong transportation links make it a crucial entry point for Indian goods into Europe. 6 | P a g e For All ixamBee Mock Tests , Please visit www.ixamBee.com Contact us at 92055 24028 (SMS/WhatsApp/call) or [email protected]  Monthly BeePedia June 2024  Diplomatic ties between India and the Netherlands have existed since 1947, evolving into strong political, economic, and business relationships.  The Netherlands was a significant investor in India, with $5 billion in foreign direct investment in the last fiscal year, up from $2.6 billion in 2022–23. NCLT gives approval for Vistara, Air India merger The National Company Law Tribunal (NCLT) approved the merger of Vistara with Air India (AI), allowing nine months for the dissolution of Vistara. Tata Sons Pvt. Ltd. will hold a 73.38% stake in the merged entity, while Singapore Airlines will hold 25.1%. SBICAP Trustee Ltd. will hold the remaining 1.52% on behalf of the Air India Employee Settlement Trust. The anti-competition authorities of India and Singapore have approved the integration. The Directorate General of Civil Aviation (DGCA) must approve the transfer of Vistara’s crew, operations, and aircraft to Air India. Muthoot Microfin inks co-lending pact with SBI  Muthoot Microfin has announced a strategic co-lending partnership with the State Bank of India (SBI) to extend its financial services to women entrepreneurs in rural and semi-urban regions across India.  Under this agreement, Muthoot Microfin and SBI will co-lend to members of Joint Liability Groups (JLGs) who are engaged in agricultural and allied activities as well as other income-generating enterprises.  The loan amounts will range from a minimum of Rs 10,000 to a maximum of Rs 3,00,000, providing a substantial boost to women entrepreneurs from rural regions.  Muthoot Microfin is the fifth largest NBFC-microfinance company in terms of gross loan portfolio.  The company provides micro-loans to women customers primarily for income generation purposes with a focus on rural regions of India. Learn Along: About SBI Chairperson: Dinesh Kumar Khara Founded: 1 July 1955 Headquarters: Mumbai SBI becomes first PSB to cross ₹ 8 trn mcap  The State Bank of India (SBI) became the first public sector bank and the seventh Indian company to achieve a market capitalization of over ₹8 trillion.  This milestone places SBI among other major banks such as HDFC Bank and ICICI Bank, which also boast market caps exceeding ₹8 trillion.  The bank has shown strong profit growth and improved asset quality over recent years, contributing to a sharp rise in stock prices.  Over the past year, SBI's stock has increased by nearly 55%, while the Nifty PSU Bank index, which includes SBI, has almost doubled.  Currently, six other Indian companies valued over ₹8 trillion include Reliance Industries, TCS, HDFC Bank, Bharti Airtel, and ICICI Bank; Infosys previously reached this mark but has since dropped to a valuation of ₹5.8 trillion.  SBI and ICICI Bank are nearing the $100 billion market cap milestone, a feat recently achieved by telecom major Airtel. SBI launches ‘SME Digital Business Loans 7 | P a g e For All ixamBee Mock Tests , Please visit www.ixamBee.com Contact us at 92055 24028 (SMS/WhatsApp/call) or [email protected]  Monthly BeePedia June 2024  State Bank of India (SBI) launched SME Digital Business Loans with a sanction turnaround time of up to 45 minutes for SMEs.  The loan process leverages technology and APIs to streamline lending, utilizing ITR, GST returns, and bank statements for a data-driven credit assessment, providing decisions within 10 seconds without human intervention.  For loans up to ₹50 lakhs, SBI has waived the requirement for financial statements, relying on transaction history and GST returns for appraisal.  SBI aims to revolutionize MSME lending by reducing human intervention and enhancing the ease of doing business, aiming to provide the fastest and most intuitive lending process.  SBI registered 20% year-on-year credit growth in the SME segment, with outstanding credit to SME borrowers exceeding ₹4 lakh crore as of March-end 2024.  SBI has also digitized the Mudra product for loans up to ₹10 lakh and automated the collateral-free process for loans under CGTMSE cover. SBI Hikes MCLR Rates Effective June 15 State Bank of India (SBI) has increased its marginal cost of funds-based lending rate (MCLR) by 10 basis points (bps) across all tenures. The hike is effective from June 15. This decision comes despite the RBI holding the key interest rate (repo rate) unchanged in its June monetary policy review. New MCLR Rates: One-year tenure: increased to 8.75% from 8.65% Two-year tenure: increased to 8.85% from 8.75% Three-year tenure: increased to 8.95% from 8.85% Most SBI loans are linked to the one-year MCLR rate. India to remain fastest-growing among largest economies: World Bank  The World Bank retained India's growth forecast at 6.6% for FY25, making it the fastest-growing large economy.  For FY26 and FY27, the World Bank projects growth rates of 6.7% and 6.8% respectively, despite a slowdown in investment growth from a high base.  Private consumption growth is expected to benefit from improved agricultural production and declining inflation, while government consumption will grow slowly to reduce current expenditure relative to GDP.  The RBI raised its growth projection for FY25 to 7.2%, citing factors like above-normal monsoon, strong agricultural and services sector activity, healthy balance sheets, and government capex.  The World Bank noted India's fiscal deficit is projected to shrink due to increased revenues from tax base broadening, with strong domestic demand driving investment and services activity.  India's GDP growth for FY24 was estimated at 8.2% by the National Statistical Office, indicating robust economic performance. Learn Along: About World Bank Headquarters: Washington, D.C., United States Founded: July 1944 President: Ajay Banga Industrial output growth dips to 3-month low of 4.97%  Industrial output growth in India eased to a three-month low of 4.97% in April, down from 5.4% in March. 8 | P a g e For All ixamBee Mock Tests , Please visit www.ixamBee.com Contact us at 92055 24028 (SMS/WhatsApp/call) or [email protected]  Monthly BeePedia June 2024  Manufacturing growth decreased to 3.9% from 5.8%, while electricity generation rose by 10.2% compared to a 1.1% contraction last April.  The Index of Industrial Production (IIP) slid 7.6% in April compared to March, indicating a sequential downturn.  Production of consumer non-durables contracted for the third time in six months, shrinking by 2.4%.  Within manufacturing, six of 23 segments reported contractions, including food products (-12.7%) and leather (-8.6%).  Economists noted the divergence in consumer goods output, skewed towards the upper 50% income households, describing it as a "worrisome" augury.  The increase in electricity generation was likely due to higher demand from a heatwave across India. Minutes of the Monetary Policy Committee Meeting, June 5-7, 2024 Forty-ninth meeting of the Monetary Policy Committee (MPC) held from June 5 to 7, 2024. Attended by all members, chaired by Shri Shaktikanta Das, Governor of the RBI. Key Discussions and Reviews: ◦ Surveys on consumer confidence, household inflation expectations, corporate sector performance, credit conditions, and outlooks for the industrial, services, and infrastructure sectors. ◦ Detailed review of staff’s macroeconomic projections and various risk scenarios. Resolution Adopted on June 7, 2024: ◦ Policy repo rate under the liquidity adjustment facility (LAF) kept unchanged at 6.50%. ◦ Standing deposit facility (SDF) rate remains unchanged at 6.25%. ◦ Marginal standing facility (MSF) rate and Bank Rate remain unchanged at 6.75%. ◦ Focus remains on withdrawal of accommodation to align inflation with the target while supporting growth. Objective: ◦ Achieve a medium-term target for CPI inflation of 4% within a band of +/- 2%, while supporting growth. Learn Along: - In May 2016, the RBI Act, 1934 was amended to provide a statutory basis for the implementation of the flexible inflation targeting framework. Inflation Target: Under Section 45ZA, the Central Government, in consultation with the RBI, determines the inflation target in terms of the Consumer Price Index (CPI), once in five years and notifies it in the Official Gazette. Accordingly, on August 5, 2016, the Central Government notified in the Official Gazette 4 per cent Consumer Price Index (CPI) inflation as the target for the period from August 5, 2016 to March 31, 2021 with the upper tolerance limit of 6 per cent and the lower tolerance limit of 2 per cent. On March 31, 2021, the Central Government retained the inflation target and the tolerance band for the next 5-year period – April 1, 2021 to March 31, 2026. Section 45ZB of the RBI Act provides for the constitution of a six-member Monetary Policy Committee (MPC) to determine the policy rate required to achieve the inflation target. LNG Imports and Domestic Production Update LNG imports fell by 7.2% year-on-year in May. Imports dropped to 2,650 MMSCM from 2,854 MMSCM the previous year. Decline due to stagnant domestic demand and increased local production. Natural gas consumption in May was 5,708 MMSCM, a 0.3% increase from the same month last year. Data provided by the oil ministry. India's Growth Forecast Update Fitch Ratings has revised India's growth forecast. The forecast increased to 7.2% from 7% for the current financial year. Revision based on rapid growth in recent quarters. Growth driven by fast expansion in investment. Fiscal Deficit Target for FY25 9 | P a g e For All ixamBee Mock Tests , Please visit www.ixamBee.com Contact us at 92055 24028 (SMS/WhatsApp/call) or [email protected]  Monthly BeePedia June 2024 Union Finance Minister Nirmala Sitharaman may maintain the fiscal deficit target of 5.1% of GDP for FY25, as in the Interim Budget. Full Budget to be presented in the middle of next month. The target is under consideration amid a new coalition government at the Centre. Likely emphasis on higher capital expenditure (capex). Expectations of special financial packages for Andhra Pradesh and Bihar from coalition partners Telugu Desam Party and Rashtriya Janata Dal (United), respectively. India's Net Direct Tax Collections for FY25 Q1 Net direct tax collections for FY25 grew by 9.81% to Rs 4.62 trillion till June 16. Breakdown of collections: Corporation tax: Rs 1.81 trillion Personal income tax: Rs 2.69 trillion Advance tax collections contributed Rs 1.48 trillion. The first instalment of advance tax payment was due on June 15. Collections till June 16 are lower than the government's FY25 projection of 13% growth for both corporate and personal income tax, as per the Interim Budget. Securities transaction tax contributed Rs 11,605 crore. Equalisation levy contributed Rs 698 crore. Government targets for FY25: Direct taxes: Rs 21.99 trillion Indirect taxes: Rs 16.31 trillion City-wise collections: o Mumbai: Rs 1.19 trillion o Karnataka and Goa: Rs 52,076 crore o Delhi: Rs 48,876 crore FY24 direct tax revenue was Rs 19.58 trillion, reflecting a 17.7% growth. Dip in Outward Remittances under RBI's Liberalised Remittance Scheme (LRS) in April 2024 Total Remittances: $2.28 billion in April 2024. Year-on-Year Change: 1.98% decrease from $2.33 billion in April 2023. Specific Categories Maintenance of Close Relatives: April 2024: $391.69 million. April 2023: $449.38 million. Change: 12.84% decrease. Deposit-Related Remittances: April 2024: $72.67 million. April 2023: $103.47 million. Change: 29.7% decrease. Gifts: April 2024: $311.16 million. April 2023: $339.77 million. Change: 8.43% decrease. Learn Along:- Under the Liberalised Remittance Scheme, all resident individuals, including minors, are allowed to freely remit up to USD 2,50,000 per financial year (April – March) for any permissible current or capital account transaction or a combination of both. Further, resident individuals can avail of foreign exchange facility for the purposes mentioned in Para 1 of Schedule III of FEM (CAT) Amendment Rules 2015, dated May 26, 2015, within the limit of USD 2,50,000 only. The Scheme was introduced on February 4, 2004, with a limit of USD 25,000. 10 | P a g e For All ixamBee Mock Tests , Please visit www.ixamBee.com Contact us at 92055 24028 (SMS/WhatsApp/call) or [email protected]  Monthly BeePedia June 2024 GST rate rationalisation panel reconstituted, Bihar dy CM named convenor  Bihar Deputy Chief Minister Samrat Chaudhary has been appointed as the convenor of the GoM on GST rate rationalisation.  According to an official memorandum posted on the GST Council secretariat website, the other members of the reconstituted panel are Uttar Pradesh Finance Minister Suresh Kumar Khanna, Goa Transport Minister Mauvin Godinho, Rajasthan Medical, and Health Services Minister Gajendra Singh.  The GoM also includes West Bengal Finance Minister Chandrima Bhattacharya, Karnataka Revenue Minister Krishna Byre Gowda, and Kerala Finance Minister K N Balagopal.  The seven-member GoM has been tasked with suggesting required rate rationalisation and correction of inverted duty structure with an objective of simplifying the rate structure, reviewing the GST exemption list and enhancing revenues from Goods and Services Tax (GST).  This is the second time that the GST rate rationalisation panel was reconstituted.  The GoM was originally set up in September 2021, under then Karnataka Chief Minister Basavaraj Bommai.  Under his chairmanship, the panel had submitted an interim report to the GST Council in June 2022, proposing changes in tax rates for some goods and services to rationalise the levy.  Currently, the GST regime has five broad tax slabs of zero, 5, 12, 18, and 28 per cent. A cess is levied over and above the highest 28 per cent rate on luxury and demerit goods. Learn Along The Goods and Services Tax is a successor to VAT used in India on the supply of goods and service. Both VAT and GST have the same taxation slabs. It is a comprehensive, multistage, destination-based tax: comprehensive because it has subsumed almost all the indirect taxes except a few state taxes. The GST Council is a constitutional body responsible for making recommendations on issues related to the implementation of the Goods and Services Tax (GST) in India. 53rd GST Council Meeting Highlights: FM assures finance commission grants and arrears of GST compensation to states  GST Council is likely to deliberate on taxation on online gaming and lowering tax on fertilisers as recommended by the Parliamentary standing committee.  Union finance minister chairs the 53rd meeting of the GST Council in New Delhi.  Attendees include MoS finance Pankaj Chaudhary, CMs of Goa and Meghalaya, Deputy CMs of Bihar, Haryana, Madhya Pradesh, and Odisha, as well as finance ministers of states & UTs and senior officers.  Discussion points include Group of Ministers (GoM) progress on GST rate rationalisation and amendments based on previous council decisions.  The council will consider the Standing Committee on Chemicals and Fertilisers' recommendation to reduce GST on nutrients and raw materials for fertiliser manufacturing companies and farmers.  Current GST rates: 5% on fertilisers and 18% on raw materials like Sulphuric Acid and Ammonia.  The 53rd meeting comes after an eight-month gap, with the last meeting held on October 7, 2023. India’s Core Sector Grew By 6.3% In May  India’s core sector grew by 6.3% in May 2024 compared to the same period last year.  Production of Electricity, Coal, Steel, Natural Gas, and Refinery Products recorded positive growth in May 2024.  Month-on-Month growth slowed down slightly, from 6.7% in April to 6.3% in May 2024.  Coal production increased by 10.2%, Electricity generation by 12.8%, Natural Gas production by 7.5%, and Petroleum Refinery production by 0.5%.  Cement production decreased by 0.8%, Crude Oil production declined by 1.1%, and Fertilizer production fell by 1.7%. 11 | P a g e For All ixamBee Mock Tests , Please visit www.ixamBee.com Contact us at 92055 24028 (SMS/WhatsApp/call) or [email protected]  Monthly BeePedia June 2024 S&P Global Ratings retains India's growth forecast for FY25 at 6.8%  The S&P Global Ratings retained its growth forecast for India at 6.8 per cent for FY25, citing high interest rates and lower fiscal boost tempering demand in the non-agricultural sectors.  “India's economic growth continues to surprise on the upside. GDP growth for fiscal 2024 was revised up to 8.2 per cent.  For FY26 and FY27, S&P projected India’s economy to grow at 6.9 per cent and 7 per cent, respectively.  S&P raised its GDP growth forecast for China to 4.8 per cent from 4.6 per cent for 2024, but expected a sequential slowdown in the June quarter.  The rating agency expects the Reserve Bank of India (RBI) to reduce its policy rate to 6 per cent in the current financial year from 6.5 per cent at present. SBI pays Rs 6,959 crore dividend to govt, BoM gives Rs 857 crore for FY24  The country's biggest lender State Bank of India (SBI) paid a dividend of Rs 6,959 crore for the financial year 2023-24 to the government.  SBI declared a dividend of Rs 13.70 per share for the financial year 2023-24, higher than Rs 11.30 per equity distributed for the previous year.  During 2023-24, the bank earned a record consolidated net profit of Rs 67,085 crore against Rs 55,648 crore in the preceding year.  State-owned Bank of Maharashtra (BoM) presented Rs 857 crore dividend cheque to Finance Minister Nirmala Sitharaman.  The bank declared a dividend of Rs 1.40 per equity share (14 per cent) for FY24, BoM said in a statement.  The Government of India holds an 86.46 per cent stake in the Pune-based bank.  The bank's net profit increased by 55.84 per cent to Rs 4,055 crore in FY24, compared to Rs 2,602 crore in the previous fiscal year. Learn Along: AboutSBI Chairperson: Dinesh Kumar Khara Founded: 1 July 1955 Headquarters: Mumbai SEBI and FINANCIAL AWARENESS SEBI Advices Not To Engage With Financial Influencers  SEBI has prohibited regulated entities like stock brokers and mutual funds from associating with unregistered entities, including financial influencers.  SEBI Chairperson Madhabi Puri Buch stated that regulated entities must not engage with unregistered persons offering advice or recommendations.  Exemption is given to those solely involved in investor education without providing investment advice.  SEBI plans to notify digital platforms to prevent unregistered persons from offering investment advice.  SEBI authorized registered investment advisors and research analysts to optionally collect fees for their services. 12 | P a g e For All ixamBee Mock Tests , Please visit www.ixamBee.com Contact us at 92055 24028 (SMS/WhatsApp/call) or [email protected]  Monthly BeePedia June 2024  SEBI board approved a Cybersecurity and cyber resilience framework for regulated entities. Learn Along: About SEBI  The Securities and Exchange Board of India was established as a statutory body in the year 1992 and the provisions of the Securities and Exchange Board of India Act, 1992 (15 of 1992) came into force on January 30, 1992.  Chairperson: Ms. Madhabi Puri Buch Headquarters: Mumbai, Maharashtra India received $120 billion in remittances in 2023, maximum from US: World Bank  India received USD 120 billion in remittances in 2023, almost double the USD 66 billion received by Mexico, per the World Bank.  Other top remittance recipients: China (USD 50 billion), Philippines (USD 39 billion), and Pakistan (USD 27 billion).  India's remittance growth of 7.5% in 2023 is attributed to low inflation, strong US labor markets, and demand in GCC countries.  Pakistan's remittances fell 12% to USD 27 billion due to internal economic difficulties.  Remittances from the UAE (18% of India's total) benefited from a February 2023 agreement on local currency transactions.  Forecast: India's remittances to grow to USD 124 billion in 2024 and USD 129 billion in 2025, supported by linking UPI with countries like the UAE and Singapore.  Diversification of India's migrant pool between OECD and GCC markets lends stability to remittance flows. India achieves ‘outstanding outcome’ in FATF evaluation  India achieved an outstanding outcome in the Mutual Evaluation by the Financial Action Task Force (FATF), placing in the ‘regular follow-up’ category with only four other G20 countries, recognized in the June 2024 plenary in Singapore.  FATF acknowledged India's efforts in mitigating money laundering (ML) and terrorist financing (TF) risks, transitioning to a digital economy, and implementing the JAM (Jan Dhan, Aadhaar, Mobile) Trinity.  India's performance in the FATF Mutual Evaluation enhances financial system stability and integrity, improving access to global financial markets, investor confidence, and supporting the global expansion of the Unified Payments Interface (UPI).  The recognition underscores India's commitment to international standards and proactive measures against financial crimes, setting a regional benchmark for countering terror financing.  Since 2014, legislative changes and enforcement efforts have aligned India's measures with international standards, proving effective against terror funding, black money, and narcotics.  The Department of Revenue (DoR) led India's engagement with FATF, showcasing a collaborative, multi- disciplinary approach to an effective AML/CFT framework.  As a member of the FATF Steering Group, India's performance enables significant contributions to the group's functioning and reinforces its commitment to strengthening the AML/CFT framework India's Future Unicorns in the FinTech Sector India has 30 future Unicorns in the FinTech sector. Consumer lending is the dominant subcategory, comprising more than half of the FinTech future Unicorns. The FinTech sector holds a substantial share of the overall value of future Unicorns, with a total of $11.4 billion or 20% of the total value. Money View is the most valuable FinTech Gazelle, and JustPay is the most valuable FinTech Cheetah. The 30 startups in the ASK Private Wealth Hurun India Future Unicorn Index have collectively raised $5.7 billion. 13 | P a g e For All ixamBee Mock Tests , Please visit www.ixamBee.com Contact us at 92055 24028 (SMS/WhatsApp/call) or [email protected]  Monthly BeePedia June 2024 The future focus in technology is shifting towards Deeptech, with significant activity expected in the EV, Green Energy, and Semiconductor sectors. SEBI's New Framework for Special Call Auctions for Holdcos SEBI announced a framework for special call auctions for investment holding companies (holdcos) with no price bands. Holdcos hold stakes in other assets, including shares of other listed companies, and typically trade at a discount to their intrinsic value. Nearly 70 listed holdcos in the Indian market are targeted by this framework to address the valuation gap. Stock exchanges will initiate the special call auction with a 14-day advance notice. Notice details will include the overall book value, book value based on investments in listed companies, and the latest buy-back price. Each holdco will have this auction once a year, with the first session in October. Learn Along: - What is a Holdcos? - An investment holding company refers to a company that owns investments such as properties and shares for long term investment and derives investment income ('non-trade income') such as dividend, interest or rental income. The company's principal activity is that of investment holding. Increase in Net Foreign Direct Investment (FDI) in India in April 2024 Net FDI: Improved to $4 billion in April 2024 from $2.82 billion in April 2023. Reason for Improvement: Primarily due to moderation in the repatriation of capital. TATA AIA Life Insurance Declares ₹1,465 Crore Bonus Bonus Amount: ₹1,465 crore for FY24. Increase: Nearly 24% higher than the ₹1,183 crore declared in FY23. Company Statement Commitment: Reflects Tata AIA's commitment to rewarding policyholders. Executive Remarks: Executive VP and Appointed Actuary Kshitij Sharma emphasised providing superior returns to policyholders. Financial Growth Assets Under Management (AUM): Doubled to ₹1 lakh crore in the last two years. SEBI Penalties on Hexa Tradex Ltd o SEBI levied penalties totalling Rs 35 lakh on Hexa Tradex Ltd, its promoters, and directors for violating delisting and disclosure norms. o Fines range from Rs 2-5 lakh on Hexa Tradex, its chairperson Raj Kamal Aggarwal, and directors Ravinder Nath Leekha, Vinita Jha, Girish Sharma, and Pravesh Srivastava. o Promoter entities Siddeshwari Tradex Pvt Ltd, Innox Global Multiventures, Opelina Sustainable Services, and JSL Ltd were also penalized. o The action was initiated following a complaint received by SEBI in July 2022. o SEBI conducted an examination regarding the delisting of Hexa Tradex Ltd (HTL), listed on BSE and NSE. o Proceedings were initiated to address alleged violations of SEBI's delisting rules and other norms. LIC Achieves Significant Milestone in Asset Management Life Insurance Corporation of India (LIC) has crossed the Rs 50 lakh crore mark in total assets under management (AUM). LIC’s AUM surged by 16.48% year-on-year, reaching Rs 51,21,887 crore ($616 billion) as of the end of March. This is a substantial increase from Rs 43,97,205 crore at the end of FY23. 14 | P a g e For All ixamBee Mock Tests , Please visit www.ixamBee.com Contact us at 92055 24028 (SMS/WhatsApp/call) or [email protected]  Monthly BeePedia June 2024 LIC’s financial clout now dwarfs Pakistan’s GDP, which is approximately $338.24 billion, and also surpasses the economies of Denmark and Singapore. The sharp rally in Indian stocks contributed significantly to this achievement. Urban-Rural Consumption Expenditure Differential Falls To 71% In 2022-23: Survey: MoSPI Survey  Survey on Household Consumption Expenditure by the Ministry of Statistics and Programme Implementation found that Rural India's average monthly capital expenditure was 71% lower than Urban India from August 2022 to July 2023.  Rural India's average Per capita consumption expenditure (MPCE) was ₹3,773 during this period.  Urban India's average MPCE stood at ₹6,459.  Rural India spent 46% of its household consumption expenditure on food during 2022-23.  The National Sample Survey Office has been conducting household consumption expenditure surveys since its establishment in 1950. Pump and Dump Scheme  SEBI has fined 11 individuals for allegedly operating a ‘pump and dump’ scheme, a manipulative tactic involving artificially inflating stock prices with false information, then selling at the inflated price, leaving investors with losses.  Pump-and-dump schemes are common in the micro-cap and small-cap sectors, where trading volumes are low, and public information is limited. These schemes are strictly banned under SEBI guidelines.  Participants in such schemes face severe penalties, including fines, disgorgement of profits, and possible imprisonment, aiming to uphold market integrity and protect investors.  Unlike insider trading, which involves using confidential information to influence stock trades, pump-and-dump schemes do not rely on insider information but rather on spreading false information to manipulate stock prices.  These schemes significantly undermine market confidence, making legitimate investors wary of potential fraud and distorting the true value of securities.  SEBI's action highlights its commitment to maintaining fair and transparent financial markets, ensuring that manipulative practices are rigorously penalized. Learn Along: About SEBI  The Securities and Exchange Board of India was established as a statutory body in the year 1992 and the provisions of the Securities and Exchange Board of India Act, 1992 (15 of 1992) came into force on January 30, 1992.  Chairperson: Ms. Madhabi Puri Buch Headquarters: Mumbai, Maharashtra PhonePe partners with PickMe to enable contactless payments for Indian travellers in Sri Lanka  PhonePe, announced its collaboration with PickMe, Sri Lanka’s leading ride-hailing platform, to enable seamless UPI-based QR payments for Indian travellers in Sri Lanka.  The partnership signifies a major step forward in enhancing their travel experience through the convenience of cashless transactions on their PickMe rides from the moment they exit the Bandaranaike International Airport.  By integrating PhonePe’s UPI-based QR payment system into their platform, PickMe aims to minimise that stress for Indian travellers visiting Sri Lanka. Learn Along: About PhonePe  PhonePe Group, launched in August 2016, is India’s leading fintech company. 15 | P a g e For All ixamBee Mock Tests , Please visit www.ixamBee.com Contact us at 92055 24028 (SMS/WhatsApp/call) or [email protected]  Monthly BeePedia June 2024  The PhonePe digital payments app has scaled rapidly, now boasting over 535 million registered users and a digital payments acceptance network of 39 million merchants. About PickMe  PickMe is Sri Lanka’s leading ride-hailing and food delivery platform, providing convenient and reliable transportation solutions to millions of users across the country.  Established in 2015, PickMe has grown rapidly, leveraging technology to revolutionise the transportation industry in Sri Lanka. India’s Foreign Exchange Reserves Hit Record $651.5 Billion  As of May 31, 2024, India's foreign exchange reserves reached an all-time high of $651.5 billion.  Growth factors include strong exports of software and other services, with net service exports up 9.3% in the fourth quarter of 2023-24.  Global Capability Centers (GCCs) significantly contributed, with GCC-related foreign currency inflows expected to rise from 1,580 in 2022-23 to about 1,900 by 2024-25.  India is the largest receiver of remittances, accounting for 15.2% of global remittances, exceeding $100 billion in the first nine months of FY 2023-24.  A lower trade deficit and strong remittance transfers have helped keep the current account deficit within manageable levels for FY 2024-25.  Foreign Portfolio Investment (FPI) netted $41.6 billion in 2023-24, although early 2024-25 saw net losses of $5 billion as of June 5, 2024.  Foreign Direct Investment (FDI) remained strong in 2023-24, keeping India as the top destination for new FDI in the Asia-Pacific region, alongside increased External Commercial Borrowings (ECBs) and non- resident savings. SEBI issues framework for surveillance lapse penalty SEBI introduced a framework for financial disincentives for market infrastructure institutions (MII), imposing penalties from ₹1 lakh to ₹1 crore for surveillance lapses. The penalty for the first instance of lapse ranges from ₹1 lakh (for annual revenue under ₹300 crore) to ₹25 lakh (for annual revenue over ₹1,000 crore). For the second instance, the penalty ranges from ₹2 lakh to ₹50 lakh; for the third instance onwards, it ranges from ₹4 lakh to ₹1 crore. The new framework will be applicable from July 1. The objective of surveillance by MIIs is to detect and deter market manipulation or abusive trading, ensuring market integrity and supporting regulatory enforcement actions. Market surveillance by MIIs includes monitoring trading, margining, settlement, and demat transactions; lapses include inadequate or non-reporting of surveillance activities. SEBI launches app for investor awareness  The Securities and Exchange Board of India (SEBI) launched Saa.thi 2.0, an updated app designed to simplify personal finance concepts for investors.  Saa.thi 2.0 features educational videos on personal finance planning, financial calculators, and modules explaining Know Your Customer (KYC) procedures.  The app provides detailed information on mutual funds, exchange-traded funds (ETFs), and the workings of the stock market.  It includes a section on the investor grievance redressal mechanism and an online dispute resolution platform, enhancing investor support and dispute handling. 16 | P a g e For All ixamBee Mock Tests , Please visit www.ixamBee.com Contact us at 92055 24028 (SMS/WhatsApp/call) or [email protected]  Monthly BeePedia June 2024  SEBI's goal with Saa.thi 2.0 is to offer reliable information and prevent investors from being misled by inaccurate content found online. NPCI arm signs pact with Peru to enable UPI payments  Peru will soon have a UPI-like instant payments system developed by NPCI International Payments Limited (NIPL).  NIPL, the international arm of the National Payments Corporation of India (NPCI), signed a pact with Peru's central bank for this development.  This marks NIPL's second partnership with a central bank to deploy the Unified Payments Interface (UPI) stack internationally.  In May, NIPL entered an agreement with the Bank of Namibia (BoN) to develop a similar instant payment system in Namibia. Learn Along: About NPCI  National Payments Corporation of India (NPCI), an umbrella organisation for operating retail payments and settlement systems in India, is an initiative of Reserve Bank of India (RBI) and Indian Banks’ Association (IBA) under the provisions of the Payment and Settlement Systems Act, 2007, for creating a robust Payment & Settlement Infrastructure in India.  MD & CEO: Mr. Dilip Asbe About UPI  Unified Payments Interface (UPI) is a system that powers multiple bank accounts into a single mobile application (of any participating bank), merging several banking features, seamless fund routing & merchant payments into one hood.  It also caters to the “Peer to Peer” collect request which can be scheduled and paid as per requirement and convenience.  NPCI conducted a pilot launch with 21 member banks. The pilot launch was on 11th April 2016 by Dr. Raghuram G Rajan, Governor, RBI at Mumbai. UPI breaks record with 14.04 billion transactions in May, sees 49% year-on-year growth  The Unified Payments Interface (UPI), managed by the National Payments Corporation of India (NPCI), recorded a new high with 14.04 billion transactions in May, up from 13.3 billion in April.  The total value of UPI transactions reached Rs 20.45 lakh crore in May, showing an increase from Rs 19.64 lakh crore in the previous month.  Despite a minor decline in April, UPI transaction volumes rebounded strongly, reflecting a 49 percent year-on-year growth in daily transaction counts, which stood at 453 million in May.  The average daily transaction value in May was Rs 65,966 crore, indicative of robust activity on the platform.  The Reserve Bank of India (RBI) and NPCI are working on broadening UPI's applications and extending its influence to the rural economy. Fiscal deficit in FY24 narrowed to 5.6% on better tax mop-up  The Central government's fiscal deficit for FY 2023-24 was 5.6% of GDP, an improvement over the initial projection of 5.8%, driven by higher revenue realization and controlled expenditure.  The fiscal deficit in actual terms amounted to ₹16.53 lakh crore, which is 5.63% of the GDP.  This GDP growth for the fiscal year was 8.2%.  Originally, the revised estimate in the Interim Budget projected the fiscal deficit at ₹17.34 lakh crore.  Revenue collections for the government reached 101.2% of the budget's revised estimates, with net tax collection totaling ₹23.26 lakh crore. 17 | P a g e For All ixamBee Mock Tests , Please visit www.ixamBee.com Contact us at 92055 24028 (SMS/WhatsApp/call) or [email protected]