Beepedia Monthly Current Affairs September 2024 PDF

Monthly BeePedia September 2024 INDEX RBI, Banking and Economy ___________________________________________ 2 SEBI and Financial Awareness _________________________________________ 17 NABARD and Agriculture ___________________________________________ 30 National __________________________________________________________ 35 International _____________________________________________________ 49 States____________________________________________________________ 59 Reports and Indexes _______________________________________________ 67 Science and Technology ___________________________________________ 81 Defence __________________________________________________________ 91 Events ___________________________________________________________ 102 Awards & Rewards ___________________________________________________ 110 Appointments _____________________________________________________ 111 Important Days ___________________________________________________ 113 Obituaries_________________________________________________________ 116 Books ___________________________________________________________ 117 Sports ___________________________________________________________ 118 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 September 2024 RBI, Banking and Economy Topic Key Details RBI's Five Strategic Priorities: Financial Inclusion, Enhancing Digital Public Infrastructure (DPI), Priorities for India's Strengthening Cybersecurity, Promoting Sustainable Finance, and Reinforcing Financial Future Financial Infrastructure. Companies penalized include Godrej Housing Finance, Aadhar Housing Finance, RBI Penalties Housing and Urban Development Corporation, and others for violations such as failure to obtain valuation reports and improper loan disbursements. Withdrawal of ₹2000 ₹2000 banknotes withdrawal status: 97.96% of notes returned, banknotes remain Denomination Banknotes legal tender. MSME loans grew by 13.3% for micro-small and 17.2% for medium enterprises; Loans to MSMEs growth slowed in FY24. Moody's Analytics: APAC India's GDP forecasted to slow from 7.1% in 2024 to 6.5% in 2025, impacting APAC Growth Projection growth. RBI Currency Management Plans include modernising currency management infrastructure, automating Revamp warehouses, and enhancing security systems. Retail Inflation and IIP Retail inflation rose to 3.65% in August, while IIP growth stood at 4.8% in July. Growth RBI's Digitally-Linked RBI plans to enforce a 5% run-off factor on digitally accessible retail deposits to Deposit Buffer Proposal manage withdrawal risks. Outward FDI Data India's outward FDI increased to $3.2 billion in August 2024. India's Coal Output Growth Coal output increased by 5.85% to 411.6 million tonnes in FY25. Forex Reserves Update India's forex reserves hit a new peak of $689.24 billion in September 2024. Inflation likely held at 3.5% in August, below RBI's target, but risks remain due to Inflation Forecast erratic rainfall and weak rupee. RBI Spot Forex Market RBI made a net purchase of $6.93 billion in the spot forex market in July 2024. Purchases Topic Key Details India's GDP growth slowed to 6.7% in April-June 2024, due to lower govt. spending Slowing of GDP Growth and the model code of conduct (MCC) during elections. GST receipts growth slipped to 6.5% in August 2024, down from 14.4% in July, with Net GST Receipts Growth total GST collections at ₹1.75 lakh crore. India’s coal output rose by 6.48% in April-August FY25 to 384.08 MT; Coal India Ltd. Coal Output produced 290.39 MT. World Bank Growth World Bank revised India’s FY25 growth forecast to 7%, up from 6.6%, driven by Forecast public infrastructure investment and real estate. India’s Goods Export India’s exports declined by 9% in August 2024 to $34.71 billion, while imports Decline increased to $64.36 billion, leading to a $30 billion trade deficit. 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 September 2024 Retail Inflation (Farm & Retail inflation for farm workers (CPI-AL) eased to 5.96%, and rural laborers (CPI-RL) Rural Workers) to 6.08% in August 2024. S&P Global retained India's FY25 growth forecast at 6.8%, expecting two interest rate S&P Growth Forecast cuts by March 2025. HDFC Bank announces GIGA, financial product for India's gig workers  HDFC Bank launched GIGA, a financial suite designed specifically for gig workers and freelancers to address their unique financial needs.  The programme targets India's growing gig economy, estimated to employ 30-50 million workers across various fields, including consultants, programmers, and delivery partners.  GIGA offers a flexible savings account, business credit card with interest-free credit, and health insurance with premiums starting at Rs 20 per day.  Freelancers can also access collateral-free loans, flexible investment products, and SmartHub Vyapaar for seamless payment solutions.  Partnerships with Razorpay and Payoneer enable global payment collection in 11 major currencies across 190+ countries, boosting freelancers' global operations. Learn Along: About HDFC Bank CEO: Sashidhar Jagdishan Founded: August 1994 Headquarters: Mumbai Telangana, TN top in GSDP growth among 10 largest States  Telangana, Tamil Nadu, and Rajasthan recorded the highest GSDP growth among the top 10 largest states in FY24, as per MoSPI estimates.  Telangana grew its economy by 9.2% to reach a GSDP of ₹7.9 lakh crore, surpassing the national GDP growth of 8.2%.  Tamil Nadu, the third-largest state, saw 8.2% growth with a GSDP of ₹15.7 lakh crore, while Rajasthan grew by 8%.  Growth was driven largely by the services sector, with Telangana’s services growing 11% and Tamil Nadu’s services growing 9%.  Maharashtra, with a GSDP of ₹24.1 lakh crore, remains India's largest economy, despite slower services growth at 9%.  UP and Karnataka are nearly tied for fourth and fifth spots, with UP's GSDP just ₹130 crore ahead of Karnataka’s. UK-India sign new infrastructure financing bridge agreement in London  The India-UK Infrastructure Financing Bridge (UKIIFB), aimed at unlocking sustainable investments for India's infrastructure projects, was launched in London on 6 September 2024.  The agreement is between the City of London Corporation and NITI Aayog, operational for an initial two-year period, with a focus on national highways, rapid transport, and renewable energy projects.  A Steering Committee of representatives from both countries, including construction, engineering, and legal firms, will drive the initiative forward.  The initiative aims to reduce the cost of capital by addressing risks and making projects attractive for international investors.  Initial projects include the Delhi-Meerut Regional Rapid Transit System and those in the green hydrogen and renewable sectors.  This collaboration highlights India as a key investment destination and strengthens the UK-India bilateral economic relationship.  The UKIIFB will focus on mobilizing private sector investment and developing best practices for sustainable infrastructure projects. 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 September 2024 Chennai based Fintech Paysharp received authorisation from the RBI to act as a payment aggregator  Paysharp, a Tamil Nadu-based Payment Aggregator (PA), received RBI final authorization on 30th August 2024, after its in-principal license in December 2022.  Founded 5 years ago, Paysharp has raised 23 crores in funding, with its last round in March 2023, valuing the company at 200 crores.  Paysharp holds ISO 27001:2022 and SOC 2 certifications, ensuring secure operations.  It offers flat pricing for merchants, focusing on non-card-based payments like UPI and Virtual account- based solutions for NEFT/IMPS/RTGS.  The company aims to expand in sectors like Government, B2B, NBFC, SMBs, and now into e- commerce.  Recently launched products include Link Payment and Payment Pages, enabling merchants to collect payments via WhatsApp, SMS, and email at flat rates.  Paysharp is one of 36 RBI-authorized Payment Aggregators, including Razorpay, Cashfree, and Stripe. Govt may reduce no.of RRBs to 30  Regional Rural Banks (RRBs) were established under the RRB Act, 1976, with capital contributed by the Centre, states, and sponsor banks, focusing on rural development.  State Bank of India (SBI) sponsors the most RRBs (14), followed by Punjab National Bank (9) and Canara Bank (4).  Key states with the highest number of RRBs include Andhra Pradesh, Uttar Pradesh, and West Bengal, with three RRBs each.  RRBs recorded their highest-ever consolidated net profit of ₹7,571 crore for FY24, with a GNPA ratio of 6.1%, the lowest in a decade.  Finance Minister Nirmala Sitharaman urged RRBs to focus on improving business performance and digital technology, particularly in regions with challenging physical connectivity.  Sponsor banks are key in providing technical assistance, best practices, and ensuring access to resources for RRBs' success. Centre to extend sugar export ban to boost local supplies, ethanol output  India plans to extend its ban on sugar exports for the second consecutive year due to lower cane output.  The government aims to increase ethanol production, raising the procurement price for oil companies to encourage biofuel supply.  Global sugar supplies may tighten, potentially raising prices in New York and London markets, especially as Brazil's production declines due to drought.  India seeks to prioritize ethanol blending, targeting a 20% ethanol share in gasoline by 2025-26, up from 13-14% currently.  Indian sugar mills have expanded ethanol production capacity in recent years to meet these goals.  Sugar production for the 2024-25 season is projected to fall to 32 million metric tonnes from 34 million tonnes in 2023 due to adverse weather in Maharashtra and Karnataka. India seeks review of UAE trade deal amid spike in silver, gold imports  India signed the India-UAE Comprehensive Economic Partnership Agreement (CEPA) in February 2022, but is now seeking a review due to concerns over value addition norms and rising imports of precious metals.  Silver imports from the UAE surged by 5,853%, raising concerns as the UAE primarily re-exports rather than produces silver.  India committed to gradually reducing import duties on gold and silver, but the rapid spike in imports has prompted reconsideration. 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 September 2024  The CEPA also opened India's government procurement market to the UAE, a significant policy shift.  Duty concessions on petrochemicals have set a precedent, leading other Gulf nations to demand similar benefits.  Experts suggest addressing these concerns through CEPA's Joint Committee and Rules of Origin Subcommittee for a collaborative resolution. Learn Along: About UAE Capital: Abu Dhabi Currency: UAE dirham In a first, govt to conduct yearly private capex survey from October  The Ministry of Statistics and Programme Implementation (MoSPI) will launch its first annual survey on private sector capital expenditure (capex) starting in October 2024, with results expected by February 2025.  The survey will track private sector capex over the past three years and projected investments for the next two years.  It will be conducted as a web-based survey, using company data from the Ministry of Corporate Affairs (MCA), with a sample size of 6,000-7,000 entities.  The survey comes amid the government's push to boost economic growth by encouraging public and private sector capex.  The Economic Survey 2023-24 noted emerging signs of private investment recovery but urged caution due to potential risks from cheaper imports.  A recent RBI study projected a 54% increase in private sector capex, reaching Rs 2.45 trillion in 2024- 25.  The rise in capex is driven by domestic demand, corporate profitability, and the government's focus on infrastructure development.  RBI Governor Shaktikanta Das highlighted that private corporate investment is gaining momentum due to rising bank credit.  The survey will complement the annual survey of industries, which tracks output, value-added, and employment in the manufacturing sector.  Gross fixed capital formation, a proxy for investments, grew by 7.5% in Q1FY25, indicating increased capex by both the private sector and households. NPCI reports Rs 1,134.31 crore surplus in FY24, up 37% on payment services  The National Payments Corporation of India (NPCI) reported a surplus of Rs 1,134.31 crore in FY24, a 37% increase from Rs 828.04 crore in FY23.  NPCI's income was driven by payment services, compliance fees, membership fees, and card fees.  NPCI earned Rs 2,693.42 crore from payment services in FY24, a 36% increase from FY23.  Total revenues for NPCI in FY24 stood at Rs 3,278.66 crore, up 42% from the previous year.  NPCI operates key retail payment systems, including UPI, IMPS, RuPay card, AePS, NACH, and CTS. 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. 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 September 2024  MD & CEO: Mr. Dilip Asbe Union Bank of India becomes 1st major bank to become signatory of PCAF  Union Bank of India has become a signatory to the Partnership for Carbon Accounting Financials (PCAF), aligning with global efforts on climate risk management.  PCAF is a global initiative that helps financial institutions assess and disclose greenhouse gas emissions linked to their loans and investments.  By joining PCAF, Union Bank commits to measuring its financed emissions (Scope 3), which are indirect emissions from lending and investments.  This step is aligned with the RBI's draft guidelines on climate-related financial risks, issued on February 28, 2024.  The guidelines emphasize disclosures in governance, strategy, risk management, and metrics and targets for regulated entities.  Tracking financed emissions is critical as they often exceed a bank's operational emissions and pose risks amid climate change.  The RBI is moving towards more stringent climate risk reporting for Indian banks, reflecting global regulatory trends.  Union Bank's participation underscores its focus on sustainable finance and proactive climate risk management. Learn Along: About Union Bank of India Headquarters: Mumbai Founded: 11 November 1919 MD & CEO : A. Manimekhalai Govt extends anti-subsidy duty on Chinese pesticide chemical for 5 years  India has extended countervailing (anti-subsidy) duty on a Chinese chemical, Atrazine Technical, used in pesticides for an additional five years.  This decision followed a recommendation from the Directorate General of Trade Remedies (DGTR) to protect domestic players from subsidized Chinese imports.  The Finance Ministry notification states that the duty will remain in effect for five years, unless revoked or amended.  The duty imposed on Atrazine Technical imports from China is up to 11.94%.  The previous duty was imposed in September 2019, and it has helped Indian producers enter and expand in the market.  Subsidised exports from China were negatively impacting Indian manufacturers by reducing their margins and profits.  According to global trade norms, countries can impose anti-subsidy duties to protect domestic industries.  The anti-subsidy duty on welded stainless steel pipes and tubes from China and Vietnam has also been extended for five years. UK, India launch major Infrastructure Financing Bridge to strengthen ties  UK and India have launched the UK-India Infrastructure Financing Bridge (UKIIFB) to boost financial collaboration in sustainable infrastructure investments in India.  This partnership involves NITI Aayog and the City of London Corporation, focusing on key projects like national highways, renewable energy, and rapid transport systems.  A steering committee with members from HM Treasury, Aon, Arup, and other prestigious organizations will oversee the initiative.  The goal is to accelerate private-sector investments, provide policy recommendations, and develop best practices for infrastructure projects.  This initiative is seen as a key step in strengthening India's global economic position and addressing infrastructure challenges. Learn Along: 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 September 2024 About UK Capital: London Currency: Pound sterling (GBP) 54th GST Council meet  The GST Council discussed key issues, including the future of the compensation cess and rate rationalisation for life and health insurance.  A state panel will examine cess collections post-loan repayment, and a GoM on insurance will submit a report by October.  There is near consensus on exempting life and health insurance premiums from GST, but further discussions are needed.  The compensation cess was extended until March 2026, with surplus collections potentially clearing loans early by 2026.  Relief was provided to foreign airlines through an exemption on the import of services, addressing tax notices for unpaid GST.  The Council clarified tax treatment on services like data hosting and advertising for Indian businesses and global investors.  GST exemptions were recommended for R&D services and affiliation services provided by educational boards.  GST rates on cancer drugs and essential items were reduced, while taxes on car seats were increased to 28%.  E-invoicing may be extended to the B2C segment, modernizing GST compliance and incentivizing refunds for foreign tourists.  Revenue from online gaming surged by 412% since the introduction of a 28% tax, collecting ₹6,909 crore in six months. RBL Bank aims to grow in credit cards, launches offering with Indian Oil  RBL Bank aims to grow its credit card portfolio moderately, targeting a 15% growth if the industry grows at 20-25%.  The bank’s focus is on unit economics, customer engagement, and cross-selling rather than aggressive expansion.  Recently, RBL launched the 'Xtra Credit Card' in partnership with Indian Oil Corporation, offering 7.5% cashback on fuel purchases at IOCL stations.  RBL Bank is prioritizing reasonable returns on capital over market share expansion, which currently stands at 5% in the credit card segment.  The RBI has expressed concerns about the rapid growth in unsecured lending, leading to a hike in risk weights for the segment in November 2023.  The bank is pursuing a multi-pronged approach in its credit card business, including partnerships with brands like IRCTC, IOCL, and Patanjali, and co-branded offerings with state-owned companies.  The fuel category now represents over 10% of total spending for RBL, reflecting increased driving, higher fuel costs, and the shift to 4-wheelers. Learn Along: About Indian Oil Corporation Founded: 30 June 1959 Headquarters: New Delhi About RBL Bank Headquarters: Mumbai Founded: 14 June 1943 MD & CEO : R Subramaniakumar Unified Lending Interface likely to move from Reserve Bank Innovation Hub to new entity  The Unified Lending Interface (ULI) may be moved out of the Reserve Bank Innovation Hub (RBIH) and housed in a separate utility with banks as stakeholders.  ULI is a rebranding of the Public Tech Platform for Frictionless Credit (PTPFC), developed by RBIH, aiming to transform lending similar to Unified Payments Interface (UPI) in payments. 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 September 2024  ULI facilitates seamless digital information flow, integrating data from governments, banks, credit agencies, and others to provide frictionless credit delivery.  The platform will operate on an open architecture with a "plug-and-play" model for regulated entities.  Banks, NBFCs, and fintechs may be included in ULI's expansion for broader participation.  The PTPFC pilot launched in 2023, covering products like Kisan Credit Card loans, digital gold, and small business loans.  The platform has reduced KCC loan processing time from weeks to less than an hour, and its scope is expected to expand further.  NABARD and the GST Network are involved in facilitating digital KCC processing and expediting loan approval. Circularity of critical minerals for India's clean energy transition  India aims to become a key player in critical mineral supply chains, with the 2024 Budget introducing the Critical Minerals Mission to promote domestic exploration and mining.  A Production Linked Incentive (PLI) scheme is in development to encourage the recycling of critical minerals, particularly from e-waste, supporting the clean energy transition.  Circular value chains can help reduce dependence on primary minerals by focusing on recycling from end-of-life (EoL) renewable energy systems.  India's reliance on imported minerals creates supply risks, but recycling could reduce the demand for primary minerals by 18% by 2030.  Challenges include low private investment, limited technological expertise, and environmental concerns around mining.  Formalizing the recycling sector and improving coherence between e-waste management and recycling policies are critical steps.  India's clean energy sector offers economic opportunities, and its success in mineral recycling could serve as a model for other developing countries. Trade Connect e-Platform aims to raise India's exports market share  Union Commerce and Industry Minister Piyush Goyal launched the FAST (Futuristic, Accessible, Single window, Transformational) Trade Connect e-Platform to provide real-time trade information to exporters.  The platform is aimed at boosting India's global market share, benefiting large exporters, MSMEs, small entrepreneurs, and Farmer Producer Organisations (FPOs).  It serves as a one-stop solution for trade-related information, addressing information asymmetry and connecting exporters with government entities, Export Promotion Councils, and Indian missions abroad.  The portal includes features like product and country guides, trade agreements, and tariff explorers to help exporters unlock benefits from free trade agreements.  The future version will support Hindi and other official languages and integrate with ONDC and GeM portals to widen the market for exporters.  The portal is part of the effort to reach the goal of $1 trillion in merchandise and $1 trillion in service exports by 2030.  The initiative aims to make Indian exporters more competitive and expand their global reach through economies of scale. 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 September 2024 Maritime Development Fund may set sail with foreign kitty, PSU push  India's first Rs 30,000 crore Maritime Development Fund (MDF) is attracting interest from domestic and international financing institutions.  The Ministry of Ports, Shipping, and Waterways is seeking equity commitments from long-term investors, including banks, NBFCs, and institutional investors.  The MDF aims to boost domestic shipbuilding to reduce dependence on foreign ships, as India currently holds less than 1% of the global shipbuilding market.  The government will contribute Rs 15,000 crore (49%) to the fund, while the remaining 51% will come from quasi-government entities, private equity investors, and PSUs.  All 12 major ports in India will participate as active equity partners in the fund.  Institutions like NIIF, IFSC, SBI, Standard Chartered, Deutsche Bank, and HDFC have shown interest in the fund during initial discussions.  The blue economy is emerging, with banks like SBI and HDFC expected to lead investments in the sector. Cabinet allocates Rs 12,461 crore for revised hydro projects scheme  The Union Cabinet allocated ₹12,461 crore to promote infrastructure around hydropower projects, as announced by the Ministry of Power.  This modified scheme will be implemented from FY 2024-25 to FY 2031-32 to support the development of Hydro Electric Projects (HEP).  The scheme builds on previous initiatives from 2016 and 2019, focusing on improving infrastructure in remote project locations.  The outlay covers the construction of roads, bridges, power transmission networks, and communication systems.  The scheme’s target capacity has been reduced to 31.35 GW by 2031-32, down from the earlier target of 75 GW by 2030.  Budgetary support has been revised to ₹1.0 crore per MW for projects up to 200 MW and ₹200 crore plus ₹0.75 crore per MW for projects above 200 MW.  For exceptional cases, budgetary support may increase to ₹1.5 crore per MW with sufficient justification.  The scheme aims to accelerate hydropower development and improve the necessary infrastructure for project implementation. Cabinet meet: Widened net for Ayushman Bharat, renewed EV subsidy, more  The Union Cabinet, chaired by Prime Minister Narendra Modi, approved major initiatives across sectors like health, electric mobility, rural infrastructure, and renewable energy.  A new version of the FAME scheme was launched with an allocation of ₹10,900 crore for electric vehicles (EVs), excluding electric cars.  The PM E-DRIVE scheme will provide subsidies for two-wheelers, three-wheelers, buses, trucks, and ambulances, and establish 88,500 charging stations. 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 September 2024  Aadhaar-authenticated e-vouchers will be required to claim EV subsidies under this scheme.  The PM-eBus Sewa-Payment Security Mechanism (PSM) will support 38,000 e-buses with an outlay of ₹3,435 crore.  The Cabinet extended Ayushman Bharat health insurance to all citizens aged 70 and above, with ₹5 lakh coverage per person.  The Pradhan Mantri Gram Sadak Yojana (PMGSY) Phase IV was approved, with an outlay of ₹70,125 crore to construct 62,500 km of rural roads.  The Cabinet allocated ₹12,461 crore for hydropower projects, aiming to achieve 30 GW of capacity by 2031-32. Cabinet approved fourth phase of rural roads scheme with outlay of Rs 70k cr  The Union Cabinet approved Phase IV of the Pradhan Mantri Gram Sadak Yojana (PMGSY) with an outlay of ₹70,125 crore over the next five years.  This phase will construct 62,500 kilometers of rural roads, providing fresh connectivity to 25,000 unconnected habitations.  The Centre will contribute ₹49,087.5 crore, and the states will share ₹21,037.5 crore of the cost.  The scheme is projected to generate 40 crore human-days of employment.  Habitations with populations over 500 in plains, 250 in hills, northeast, and tribal areas, and 100 in left-wing affected districts will be connected, based on the 2011 Census.  Road alignment planning will be done through the PM Gati Shakti portal, which will also aid in preparing Detailed Project Reports.  Since its inception in 2000, 800,000 kilometers of rural roads have been built, connecting 180,000 habitations.  This phase aims to improve rural infrastructure and create jobs in underdeveloped regions. Centre in talks with coastal states on shipbuilding clusters in India 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 September 2024  The Ministry of Ports, Shipping, and Waterways (ShipMin) discussed establishing shipbuilding and repair clusters at the 20th Maritime State Development Council (MSDC) meeting.  This initiative aims to enhance domestic shipbuilding by consolidating resources and fostering efficiency and innovation in the sector.  Andhra Pradesh has committed 20,000 acres for maritime development, showing strong interest from coastal states.  A national shipbuilding policy and a ₹30,000 crore maritime development fund are under preparation by the Union government.  States are encouraged to allocate 2,500-3,000 acres for shipbuilding clusters with waterfront access and offer capital support, subsidies, and single-window approvals.  The meeting also saw the launch of the Indian Maritime Centre (IMC), a think tank for maritime policy.  A specialized Indian International Maritime Dispute Resolution Centre (IIMDRC) will be established to resolve maritime disputes efficiently, aligning with the "Resolve in India" initiative.  Over 100 issues were resolved, including security enhancements like Radioactive Detection Equipment (RDE) at ports and improved working conditions for seafarers. PM Narendra Modi to release first instalment of central aid for new rural homes  Prime Minister Narendra Modi will release the first instalment of financial assistance for Pradhan Mantri Awas Yojana – Grameen (PMAY-Grameen) beneficiaries in the coming days.  The government aims to build 20 million rural houses in the next five years, adding to the 26 million already constructed over the past decade.  The events will start in Jharkhand on September 15, where 20,000 beneficiaries will receive approval letters for housing.  Jharkhand had a target of 113,000 houses, but the state government has built fewer homes so far.  On September 16, the PM will visit Gujarat, distributing ₹93 crore to 31,000 beneficiaries and celebrating the Griha Pravesh of 35,000 homes.  Gujarat has built 650,000 rural homes in the last 10 years, with a target of 54,135 homes for this year.  On September 17, the PM will visit Bhubaneshwar, Odisha, to release ₹3,180 crore for 1 million beneficiaries nationwide.  Poll-bound states will not be part of the beneficiary distribution at this stage. Learn Along: About Pradhan Mantri Awas Yojana – Grameen (PMAY-Grameen)  Launch on 1st April 2016, Pradhan Mantri Awaas Yojana Gramin (PMAY-G) is centre's flagship mission by the Ministry of Rural Development (MoRD), implemented by the Ministry of Housing and Urban Affairs (MoHUA).  PMAY-G aims at providing a pucca house, with basic amenities, to all houseless households and those households living in kutcha and dilapidated house. APEDA signs MoU with LuLu Group International to promote Indian Organic Products globally  APEDA signed an MoU with LuLu Group International on September 10, 2024, to promote Indian organic products in the UAE.  The agreement will see certified Indian organic products showcased in LuLu stores across the Middle East and Asia.  APEDA will connect Indian organic growers, including Farmer Producer Organizations (FPOs) and Farmer Producer Companies (FPCs), with LuLu Group.  LuLu hypermarkets will provide dedicated shelf space for Indian organic products, certified under the National Programme for Organic Production (NPOP). 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 September 2024  The partnership includes promotional campaigns, Buyer-Seller Meets, B2B meetings, and trade fairs to boost organic exports.  This collaboration will expand the global reach of Indian organic products and strengthen organic farming in India.  The strategic partnership aims to enhance Indian organic product exports through LuLu’s global retail network. Learn Along: About APEDA  The Agricultural and Processed Food Products Export Development Authority (APEDA) was established by the Government of India under the Agricultural and Processed Food Products Export Development Authority Act passed by the Parliament in December, 1985.  The Act came into effect from 13th February, 1986. HDFC Bank aims to boost income of 5 lakh marginal farmers by 2025 under 'Parivartan'  HDFC Bank aims to increase the income of 5 lakh marginal farmers earning less than ₹60,000 annually by 2025 as part of its CSR initiative, Parivartan.  The initiative focuses on rural development and uplifting vulnerable communities.  Parivartan was launched in 2014 and has grown into one of India's largest CSR programs.  It is active in 28 states and 8 Union Territories.  The program contributes to the socio-economic development of communities across India.  The initiative reflects HDFC Bank’s dedication to fostering long-term, positive changes in rural areas. Govt slashes windfall tax on petroleum crude to nil effective Sep 18  The government slashed windfall tax on domestically produced crude oil to 'nil' per tonne effective September 18.  The windfall tax is levied as Special Additional Excise Duty (SAED), revised fortnightly based on average oil prices.  The previous revision on August 31 set the windfall tax on crude petroleum at ₹1,850 per tonne.  The SAED on the export of diesel, petrol, and jet fuel (ATF) remains at 'nil'.  Windfall profit taxes were first imposed in India on July 1, 2022, targeting supernormal profits of energy companies.  The new tax rates are applicable from September 18 as per the official notification. Enhanced credit guarantee coverage to profit 2.7 mn women-led MSMEs  Women-owned micro and small enterprises (MSMEs) will now receive 90% credit guarantee coverage under the CGTMSE scheme.  Previously, the credit guarantee coverage for women-led units was 85%.  This enhancement is expected to benefit 2.7 million women-led MSMEs.  The initiative aims to improve access to collateral-free credit for women entrepreneurs from banks.  The Ministry of MSME has formalized 50.7 million MSMEs, generating employment for 210 million people.  Under the PM Employment Generation Programme (PMEGP), 26,426 new micro enterprises have been established with loans totaling ₹3,148 crore.  This is projected to create 211,000 jobs and boost rural and urban entrepreneurship.  The MSME Ministry is establishing 14 technology centres across India, with ₹2,800 crore investment.  These centres will provide advanced manufacturing technologies, skill development, and business advisory services.  10 million MSMEs will gain access to these technologies, and 300,000 youth will be trained in the next five years. Govt relief on PDS wheat quota, to launch Rs 1K cr credit guarantee fund 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 September 2024  The Centre will partially restore the wheat allocation under the Pradhan Mantri Gareeb Kalyan Ann Yojana (PMGKAY) after reducing it due to low crop yields.  This decision impacts over 800 million beneficiaries who receive 5 kg of free food grains monthly under one of the world’s largest social welfare schemes.  The move will be implemented next month and aims to stabilize food prices ahead of important state elections.  A committee of ministers has approved an additional 3.5 million tonnes of wheat under the scheme, which will continue until March 2025.  The Centre also plans a ₹1000 crore credit guarantee scheme for banks to facilitate loans using electronic Negotiable Warehouse Receipts (eNwR). Learn Along: About Pradhan Mantri Gareeb Kalyan Ann Yojana  Pradhan Mantri Garib Kalyan Anna Yojana (PM-GKAY) is part of Atmanirbhar Bharat, providing free food grains to migrants and the poor.  Phase-I and Phase-II of the scheme were operational from April to June 2020 and July to November 2020, respectively.  Phase-III was active from May to June 2021, followed by Phase-IV from July to November 2021, and Phase V from December 2021 to March 2022.  The scheme offers 5kg of free food grains per month to the poor, in addition to the subsidized ration under the National Food Security Act (NFSA).  Phase VI of PMGKAY (April-September 2022) involved an additional food subsidy of Rs. 80,000 Crore.  One Nation One Ration Card Scheme allows NFSA beneficiaries to access their entitlements from any part of India.  The food grain quantity may vary across different phases and for individual families.  The scheme aims to support families covered under the Public Distribution System (PDS) during the COVID-19 crisis. 'One State, One RRB' may make debut in March 2025  The 'One State, One RRB' policy aims to consolidate Regional Rural Banks (RRBs) to improve efficiency and reduce competition among sponsoring public sector banks.  The Union Finance Ministry plans to complete the consolidation by the end of FY25, with all stakeholders, including the RBI and NABARD, onboarded.  Post-amalgamation, each state’s RRB will be given a unique name, such as in Uttar Pradesh, which currently has three RRBs.  A new board and chairman will be appointed for each state’s RRB, with the sponsor bank chosen based on performance.  Sikkim and Goa, currently without RRBs, will also establish their own under this initiative. Learn along:  State Bank of India sponsors the highest number of RRBs (14), followed by Punjab National Bank (9) and Canara Bank (4).  Andhra Pradesh, Uttar Pradesh, and West Bengal each have three RRBs, while several other states have two each.  The focus is on improving business performance and staying relevant through digital banking in remote areas.  RRBs were originally established under the RRB Act, 1976, with capital contributed by the Government of India, state governments, and sponsor banks. India, S Korea share bill of lading electronically to promote trade: DGFT  India and South Korea have started sharing the bill of lading electronically between their customs, promoting ease of doing business.  A bill of lading is a legal document serving as a receipt, contract, and proof of ownership for shipped goods. 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 September 2024  The move eliminates the need for physical submission of records, which could become a norm globally in 1-1.5 years.  The initiative is backed by UNCITRAL, aiming to shift all trade documentation to electronic transfer mode.  South Korea is a key trading partner, with India's exports to the country at $6.41 billion and imports at $21.13 billion in 2023-24.  RFID-tagged containers are tracked in real-time, and future plans involve using IoT for end-to-end tracking.  The DGFT has launched the Trade Connect e-Platform for comprehensive trade information access. India signs first-of-its-kind agreements focused on Clean Economy, Fair Economy, and the IPEF Overarching arrangement under Indo-Pacific Economic Framework for prosperity  On 21st September 2024, India signed key agreements under the Indo-Pacific Economic Framework (IPEF) in Delaware, USA during PM Modi’s visit for the Quad Summit.  The IPEF Clean Economy Agreement (Pillar-III) focuses on promoting clean energy technologies, GHG emissions mitigation, and fostering investment for MSMEs through initiatives like the IPEF Catalytic Capital Fund.  The IPEF Fair Economy Agreement (Pillar-IV) aims to create a transparent trade environment, combat corruption, enhance tax transparency, and support cross-border investigations.  The Overarching IPEF Agreement establishes a Ministerial-level mechanism to oversee the implementation of IPEF agreements, aiming to boost India’s integration into global supply chains.  India seeks to facilitate investments in renewable energy and infrastructure projects, supported by platforms like the Investor Forum and initiatives such as the Sembcorp MoU for a green ammonia plant in Thoothukudi.  The IPEF Catalytic Capital Fund aims to catalyze USD 3.3 billion in private investments, with USD 33 million initially provided by partner nations.  The IPEF Upskilling Initiative has delivered 10.9 million digital skill training opportunities, with India availing 4 million for women and girls.  The Critical Mineral Dialogue and the Tech Council focus on strengthening supply chains and enhancing cooperation in critical minerals and digital infrastructure.  The Cooperative Work Program (CWP) advances initiatives in clean energy, hydrogen supply chains, e-waste urban mining, and other sustainable technologies among IPEF partners. Amalgamation of The Rajapur Sahakari Bank Ltd., Mumbai (Maharashtra) with The Malad Sahakari Bank Ltd., Mumbai (Maharashtra)  The Reserve Bank of India (RBI) has sanctioned the Scheme of Amalgamation of The Rajapur Sahakari Bank Ltd. with The Malad Sahakari Bank Ltd., both based in Mumbai, Maharashtra.  This amalgamation is executed under Sub-Section (4) of Section 44A read with Section 56 of the Banking Regulation Act, 1949.  The Scheme of Amalgamation will take effect from September 23, 2024.  From this date, all branches of The Rajapur Sahakari Bank Ltd. will operate as branches of The Malad Sahakari Bank Ltd..  The move aims to integrate the operations of both banks under a unified structure. Centre to integrate EPFO, e-Shram database to track workforce formalisation  The Union Labour Ministry is integrating the e-Shram and EPFO databases to track the formalisation of the workforce in real-time.  This integration will help monitor the movement of workers between the unorganised and formal sectors and assist in designing targeted welfare policies.  The e-Shram portal, which registers 300 million unorganised workers, is being merged with various welfare schemes from central and state governments. 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 September 2024  The goal is to make e-Shram a single-window portal for worker welfare, integrating all related schemes.  Once workers on e-Shram generate a UAN under EPFO, it will reflect their formalisation.  The ministry has already integrated 10 central schemes with e-Shram, including MGNREGA, PMAY, and PM SVANidhi.  The government aims to add 200 million more workers to the e-Shram portal, expanding its reach.  The total workforce in India is estimated at 650 million, with 100 million in the formal sector and 500 million expected to be covered under e-Shram.  The initiative aligns with the government's efforts to provide a one-stop solution for employment, skilling, and welfare services for workers. IDFC FIRST Bank announces completion of IDFC Ltd merger effective Oct 1  IDFC First Bank announced the completion of the merger with IDFC Limited, effective from October 1, 2024.  The merger creates a simplified corporate structure, with no holding company and no promoter holding, aligning IDFC First Bank's structure with other leading Indian private sector banks.  The shareholding structure will resemble that of professionally managed private sector banks.  Post-merger, the bank will be a professionally managed institution, continuing operations without a promoter holding.  This merger aims to streamline and strengthen IDFC First Bank’s operations and financial position.  The merger is expected to boost the bank's corporate governance and enhance shareholder value. Learn Along: About IDFC FIRST BANK CEO: V. Vaidyanathan Headquarters: Mumbai Founded: October 2015 Jan-Jun FTAs in India at 4.78 mn, B'desh, US top sources: Tourism ministry  Foreign Tourist Arrivals (FTAs) in India from January to June 2024 stood at 4.78 million, with Bangladesh (21.55%) and the US (17.56%) being the top source countries.  The FTAs for June 2024 were 7,06,045, reflecting a 9% growth compared to June 2023 but a 2.8% fall from June 2019.  From January to June 2024, FTAs grew by 9.1% compared to 2023 but were 9.8% lower than the pre- pandemic levels of 2019.  The Asia-Pacific region is an important source market, contributing 1.22 million tourists from countries like Australia, Malaysia, Singapore, Japan, Thailand, and South Korea.  Despite lower FTAs, Foreign Exchange Earnings (FEE) increased to USD 15.339 billion in January- June 2024, marking a 17.62% growth over 2023 and 5.54% growth over 2019.  Indian National Departures (INDs) also increased by 13.73% in January-June 2024 compared to 2023.  India's outbound tourism is growing rapidly, accounting for 2.4% of the global market in 2019, driven by economic recovery, higher disposable income, and improved airline connectivity.  Unique travel preferences such as wellness retreats and adventure trips are influencing India's outbound tourism growth.  The Ministry of Tourism announced 36 villages as winners of the Best Tourism Villages Competition 2024, with categories like Adventure Tourism, Agri Tourism, and Responsible Tourism.  The Ministry is also introducing feedback mechanisms at airports and railway stations to enhance tourism experiences. GST Council forms GoM on compensation cess; report expected by Dec 31  The GST Council has set up a 10-member Group of Ministers (GoM) chaired by Pankaj Chaudhary to decide on taxation of luxury, sin, and demerit goods after the compensation cess ends in March 2026.  Members of the GoM include representatives from Assam, Chhattisgarh, Gujarat, Karnataka, Madhya Pradesh, Punjab, Tamil Nadu, Uttar Pradesh, and West Bengal. 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 September 2024  The GoM will submit its report to the Council by December 31, 2024.  Currently, compensation cess is levied over and above the 28% GST on luxury and sin goods, to compensate states for revenue losses after GST implementation.  The cess was extended till March 2026 to repay the ₹2.69 lakh crore loan taken during the Covid years to support states.  The GoM will decide whether to continue the cess or introduce additional taxes on these goods, and suggest new tax rates and legislative amendments.  The GST structure currently has slabs at 5%, 12%, 18%, and 28%, but the law allows tax rates up to 40%.  The ₹2.69 lakh crore loan is expected to be fully repaid by January 2026, with ₹40,000 crore estimated to be collected from the cess in February and March 2026.  The GST law mandates that any extra amount collected in the cess pool be shared equally between the Centre and states.  The GST Council will decide whether to continue the compensation cess until March 2026 or end it once the loan is repaid, based on the GoM's recommendations. India Becomes Armenia’s Largest Defense Supplier  Armenia will receive India's Akash-1S air defense missile system in 2024, becoming the first foreign buyer of this platform under a $720 million deal.  India-Armenia defense ties are strengthening, with Armenia becoming the largest importer of Indian weapons in recent years, including Pinaka rocket systems and howitzers.  Armenia's shift towards Indian military supplies reflects its efforts to reduce reliance on Russia amid tensions over Russia’s role in the Ukraine war.  In 2023, Armenia appointed a defense attaché to its New Delhi embassy to enhance military cooperation with India, following defense deals worth $245 million.  Russia previously dominated Armenia’s arms imports, accounting for 94% from 2011 to 2020, but India is now gaining influence.  Geopolitical dynamics in the South Caucasus are shifting, with India supporting Armenia, while Pakistan and Türkiye back Azerbaijan.  India views Armenia as a strategic partner in the region, particularly in countering Pakistan’s influence and accessing transit routes to EU countries.  The growing cooperation offers India a foothold in the South Caucasus while helping Armenia diversify its defense and diplomatic relations. 10 yrs of 'Make in India': Govt eyes $100 bn FDI inflows annually  The government aims for $100 billion FDI inflows annually in the coming years, aligned with the "Make in India" initiative.  Current FDI inflows are around $70-80 billion per year, with plans to increase this to $100 billion.  The "Make in India" initiative, launched a decade ago, focuses on boosting manufacturing, attracting foreign investment, and enhancing infrastructure.  Key achievements include advancements in manufacturing infrastructure, defence, and exports, supported by policies like the production-linked incentive (PLI) scheme and FDI reforms.  FDI inflows in the last decade totaled $667.4 billion, compared to $304.1 billion from 2004-14.  FDI equity inflow in manufacturing during 2014-24 was $165 billion, a 69% increase compared to 2004-14, with sectors like automobiles, telecommunications, and pharmaceuticals attracting the most.  In Q1FY25, India attracted $22.49 billion in FDI, a 26% year-on-year increase.  The PLI scheme has generated ₹1.32 trillion in investments and ₹10.90 trillion in production, creating 850,000 jobs by June 2024. Learn Along: About Make in India Initiative  ‘Make in India’ initiative was launched globally in September 2014 as a part of India’s renewed focus on Manufacturing. 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 September 2024  The objective of the Initiative is to promote India as the most preferred global manufacturing destination. Tata Steel commissions ‘India’s largest blast furnace’ at Kalinganagar  Tata Steel has commissioned India's largest blast furnace at its Kalinganagar plant in Odisha, as part of its Phase II expansion.  The ₹27,000 crore investment will increase the plant's capacity from 3 MTPA to 8 MTPA, boosting production capabilities.  This expansion will meet the growing demand in industries such as automotive, infrastructure, shipbuilding, and defence.  Odisha has become Tata Steel's largest investment destination, with total investments exceeding ₹100,000 crore over the past decade.  The new blast furnace, with a volume of 5,870 m³, features an eco-friendly design and advanced technologies for optimising the steelmaking process.  The Phase II expansion also includes facilities such as a Pellet Plant, Coke Plant, and Cold Rolling Mill, all incorporating sustainable practices.  The expansion underscores Tata Steel’s commitment to self-reliance and sustainable industrial growth in India.  The new plant will focus on value-added products, operational efficiency, and reducing the carbon footprint. Goldman Sachs: India Poised to Be Among Fastest Growing Economies Until 2030  Goldman Sachs projects India to be among the fastest-growing economies until 2030.  India’s earnings have stabilized with mid-teen profit growth, which is expected to continue due to strong GDP growth and positive investor sentiment.  India remains resilient amid global uncertainties, showing sustained economic strength.  Nifty’s total earnings growth and market cap have achieved an 18% compound annual growth rate (CAGR) over the last five years.  The profit pool is expected to shift towards investment cyclicals such as autos, real estate, chemicals, and industrials, which could see the largest profit growth.  Consumer cyclicals are expected to experience the highest absolute growth in the coming years.  Moody’s Analytics forecasts India’s economy to grow by 7.1% in FY25.  S&P Global Ratings has retained its forecast of 6.8% growth for India in fiscal 2024-25.  These forecasts highlight India's potential for robust economic growth amid evolving global conditions.  The country's focus on investment cyclicals and consumer-driven sectors could drive sustained profit and market growth till 2030. Foreign exchange reserves hit fresh high, inch closer to $700 billion  India's foreign exchange reserves surged by $2.8 billion to an all-time high of $692 billion for the week ending September 20.  This marks the fifth consecutive week of record-breaking reserves, nearing the $700 billion milestone.  The previous record of $689 billion was set the week prior, on September 13.  The rise in reserves was driven by an increase in foreign currency assets by $2.05 billion.  Gold reserves also increased by $726 million during the week.  Special Drawing Rights (SDRs) rose by $121 million.  However, India's reserve position with the IMF fell by $66 million, to $4.458 billion. SEBI and FINANCIAL AWARENESS 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] Monthly BeePedia September 2024 Topic Key Details SEBI launched a dedicated FPI outreach cell to simplify the registration SEBI FPI Outreach Cell process for foreign investors, offering assistance with documentation, compliance, and onboarding. SEBI Penalty on Jai SEBI imposed a ₹1 crore penalty on Jai Anmol Ambani in the RHFL case Anmol Ambani for diverting loans to promoter-related entities. SEBI Fixed Price SEBI introduced a fixed price mechanism for delisting, offering at least a Mechanism for 15% premium over the floor price for frequently traded shares. Delisting SEBI CDS Selling by Mutual funds are now allowed to sell Credit Default Swaps (CDS), Mutual Funds providing greater flexibility and liquidity in the corporate bond market. SEBI and IRA introduced data benchmarking institutions for REITs, SEBI Benchmarking for offering transparent, standardized data for investors through portals by REITs Care Edge Ratings, CAMS, and KFintech. 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 Topic Key Details SBI General launched Surety Bond Insurance (conditional & SBI General Surety Bond unconditional) for infrastructure projects, offering security for contractors Bima and principals. Two online portals for exporters: Jan Sunwai (grievance redressal) and Piyush Goyal's Portal ERP by ECGC (claims and policies), enhancing service delivery and Launch for Exporters reducing physical visits. To be launched by Finance Minister Nirmala Sitharaman; provides NPS Vatsalya Scheme pension investment options for children with flexible contributions starting from ₹1,000 annually. Kotak MF NIFTY Midcap Kotak launched an open-ended index fund tracking NIFTY Midcap 150 150 Momentum 50 Index Momentum 50 Index, targeting midcap stocks with positive price trends. IDFC FIRST Bank launched the Ashva Credit Card, a luxury metal card IDFC FIRST Ashva Metal for affluent customers, blending Indian heritage and modern Credit Card sophistication. Finance Ministry launched the scheme effective from October 1, 2024, Vivad Se Vishwas allowing taxpayers to settle pending tax appeals by paying full tax Scheme 2024 without interest or penalties. GST Council to deliberate on taxation of insurance premium, online gaming  The GST Council is set to deliberate on key issues, including the taxation of insurance premiums, rate rationalization, and a report on online gaming.  The fitment committee will present its findings on GST levied on life, health, and reinsurance premiums and the revenue implications, with discussions on reducing GST for health insurance or exempting certain categories.  The council will also review GST collections from online gaming following the imposition of a 28% GST on entry-level bets starting October 2023.  A status report on the ongoing drive against fake GST registrations will be presented, highlighting detected tax evasion.  The council will also approve amnesty schemes and other taxpayer-friendly measures, including waivers for tax demands from previous years and reducing pre-deposit requirements for appeals. 18 | 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 September 2024 GST Council forms GoM to review tax rate on insurance; report by Oct 30  GST Council constituted a 13-member Group of Ministers (GoM) to review GST rates on health and life insurance premiums.  Bihar Deputy Chief Minister Samrat Choudhary is the convenor of the GoM.  The GoM includes members from states like Uttar Pradesh, Rajasthan, West Bengal, and others.  The GoM will submit its report by October 30, 2024, with recommendations on insurance GST rates.  Currently, 18% GST is levied on insurance premiums.  The panel will suggest tax rates for health and life insurance, including senior citizens, middle class, and those with mental illness.  Some states have demanded GST exemption or reduction to 5% on insurance premiums.  In 2023-24, the centre and states collected ₹8,262.94 crore in GST from health insurance premiums.  Final decision on insurance GST rates will be taken in the November GST Council meeting based on the GoM report. GST relief on health insurance: Council likely to take up 4 options  The GST Council will decide on four options regarding the tax treatment of health insurance, with potential costs to the exchequer ranging from Rs 645 crore to Rs 3,500 crore.  The options, derived from the Council's fitment panel, include full exemption for health insurance premiums, GST reduction from 18% to 5%, and specific exemptions for senior citizens or premiums up to Rs 5 lakh.  These proposals have different financial implications, with the highest cost being Rs 3,495 crore for full exemption.  The Department of Financial Services (DFS) argues that lowering GST on health insurance will boost insurance penetration by reducing premiums and encouraging higher coverage.  A separate recommendation suggests GST exemption for pure-term individual life policies, potentially costing Rs 210 crore.  The DFS believes more insured individuals will offset short-term revenue loss, aligning with the “Insurance for All” vision for 2047. GST council's nod on exempting research grants from the GST Net  Delhi Finance Minister Atishi announced that the GST Council has decided to exempt research grants from the GST net, calling it a victory for the nation.  Educational institutions like IIT-Delhi and Punjab University had been issued showcause notices over research grants last month.  At the 54th GST Council meeting, Atishi and Punjab Finance Minister Harpal Singh Cheema opposed the GST on research grants.  The GST Council's exemption applies to research grants from both government and private sources. GST evasion of ₹2.02 lakh cr. found in FY24; over 40% in online-gaming  GST evasion worth almost ₹82,000 crore detected by 78 online gaming firms in 2023-24, but only ₹53 crore was recovered voluntarily.  Online gaming industry recorded the highest GST evasion, while overall indirect tax evasion reached ₹2.02 lakh crore, double from FY23.  DGGI found half of the 6,000 cases related to non-payment of tax or undervaluation, and 20% linked to fake input tax credits.  Voluntary payments of ₹26,605 crore were made in 4,520 cases in FY24.  BFSI, Works Contract Services, Pharmaceuticals, and online gaming were identified as top evasion- prone sectors.  171 cases in the BFSI sector saw evasion of ₹19,000 crore, with ₹317 crore recovered voluntarily. 19 | 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 September 2024  In the iron, copper, scrap, and alloys industries, 2,000 cases were detected, with evasion of ₹17,000 crore. Finance ministry gives GST relief to ad agencies, automobile dealers  The Union Finance Ministry issued relief circulars for the automotive industry, advertising agencies, data hosting services, and exporters.  Demo vehicles used for test drives by dealers will now be eligible for GST deductions, even if capitalized in accounts.  Data hosting services provided by Indian firms to overseas cloud computing providers can now be considered as exports, subject to certain conditions, exempting them from GST liability.  Exporters can claim refund of GST on goods, even if taxes were paid on imported inputs at a later stage.  Clarifications were issued regarding advertising services provided to foreign clients, potentially qualifying them as exports and exempting them from GST. NIPL, Trinidad and Tobago ink agreement to develop UPI-like payments system  NPCI International Payments Limited (NIPL) has partnered with the Ministry of Digital Transformation (MDT) of Trinidad and Tobago to develop a real-time payments platform similar to India's Unified Payments Interface (UPI).  This platform will support person-to-person (P2P) and person-to-merchant (P2M) transactions, promoting digital payments and financial inclusion in the Caribbean country.  The partnership aims to modernize Trinidad and Tobago's financial ecosystem by leveraging India's UPI technology and experience.  NIPL is focused on the global expansion of UPI, having already facilitated UPI adoption in countries like Bhutan, France, Mauritius, Singapore, Sri Lanka, and the UAE.  This partnership follows NIPL's agreements with the central banks of Peru and Namibia to develop UPI- like payment systems in those countries.  NIPL is a subsidiary of NPCI, responsible for deploying UPI and RuPay card systems internationally.  The collaboration with Trinidad and Tobago reflects ongoing efforts to expand India's digital payment infrastructure globally. India and Republic of Uzbekistan sign Bilateral Investment Treaty in Tashkent  Bilateral Investment Treaty (BIT) between India and Uzbekistan was signed by Smt. Nirmala Sitharaman and Mr. Khodjayev Jamshid Abdukhakimovich in Tashkent.  The treaty provides protection to Uzbek investors in India and Indian investors in Uzbekistan based on international standards.  It ensures minimum standard of treatment, non-discrimination, and an independent forum for dispute settlement through arbitration.  The BIT safeguards investments from expropriation, ensures transparency, and provides for transfers and compensation for losses.  It balances investor protection with the State's right to regulate, maintaining adequate policy space.  The signing reflects a commitment to enhancing economic cooperation and creating a resilient investment environment.  The BIT is expected to boost bilateral investments and benefit both economies. Learn Along: About Uzbekistan Capital: Tashkent Currency: Uzbekistani Som ‘LIC setting up testing centre of excellence in Bhubaneswar’  LIC is establishing a Testing Centre of Excellence (TCoE) in Bhubaneswar with an initial team of 100 IT professionals.  The focus will be on enhancing LIC's digital capabilities and improving technological solutions. 20 | 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 September 2024  LIC aims to expand this centre to become one of its largest IT hubs.  This move strengthens LIC’s position as a pioneer in technological advancements.  The centre will support superior service delivery through advanced IT infrastructure. Learn Along: About LIC  The Parliament of India passed the Life Insurance Corporation Act on the 19th of June 1956, and the Life Insurance Corporation of India was created on 1st September, 1956, with the objective of spreading life insurance much more widely and in particular to the rural areas with a view to reach all insurable persons in the country, providing them adequate financial cover at a reasonable cost.  Chairperson : Siddhartha Mohanty Headquarters: Mumbai ADB raises inflation view on food, less sanguine on early rate cut  Asian Development Bank (ADB) raised its projection for India’s retail inflation in 2024-25 to 4.7%, up from 4.6% due to elevated food prices.  India’s GDP growth for 2024-25 is retained at 7%, with expectations of 7.2% growth in 2025-26.  ADB stated that the Reserve Bank of India is unlikely to start slashing interest rates soon, though monetary policy may become less restrictive later.  If food prices moderate, the RBI may begin lowering policy rates in 2024-25, improving prospects for bank credit expansion.  ADB mentioned balanced near-term risks to India’s growth outlook, with GDP growth expected to accelerate after a dip to 6.7% in the April-June quarter.  Industrial growth in India slowed due to rising input prices affecting manufacturing margins.  La Niña is expected to help increase farm output in India, contributing to economic growth. Learn Along: About ADB  Established in 1966, the ADB is a multilateral development bank with the mission to promote economic growth and cooperation in the Asia-Pacific region.  Headquartered in Manila, Philippines, ADB comprises 68 member states and is governed by a board of governors, funded by member contributions, retained earnings, and loan repayments.  President: Masatsugu Asakawa U.S., Singapore FPIs lead flows into India in 2024  U.S. and Singapore have been the largest contributors to foreign portfolio investments in India in CY24, with a combined net investment of nearly ₹2 lakh crore.  U.S. investments totaled ₹1.24 lakh crore, with over 93% directed into equities.  Singapore’s investment amounted to ₹73,768 crore, with 54% in debt and hybrid instruments.  The data covers net investments in equity, debt, and hybrid instruments from the top 10 regions between January to August 2024.  Ireland and Japan have shown consistent inflows, contributing ₹50,997 crore and ₹42,024 crore, respectively. Credit costs of MFIs likely to go up to 3-3.5% in FY25: CRISIL Ratings  Credit costs for microfinance companies are expected to rise to 3-3.5% in FY25 from around 2% in FY24, according to CRISIL Ratings.  This increase is driven by a rise in delinquencies and the need for proactive provisioning for early bucket delinquencies, according to Ajit Velonie, senior director at CRISIL Ratings.  Fusion Finance Ltd, a BSE-listed MFI, estimated a credit loss provisioning of ₹500-550 crore in Q2FY25, up from ₹348 crore in Q1FY25.  Asset quality in the microfinance portfolio deteriorated in Q1FY25 due to a heatwave affecting borrower incomes and rumors of loan waivers. 21 | 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 September 2024  Loans with 30+ days past due (dpd) rose to 2.7% in June 2024, compared to 2.0% in June 2023, with similar trends continuing in Q2FY25.  MFIs are being cautious in growing their loan books, as per Sa-Dhan, a self-regulatory organization for MFIs.  Profitability for MFIs, measured by Return on Managed Assets (RoMA), was elevated at 3.5-4% in FY24 but is expected to moderate to 2% in FY25 due to higher provisioning.  Operating expenses are expected to rise as MFIs strengthen their collections infrastructure.  NBFC-MFIs can adopt risk-based pricing due to the removal of the interest margin cap, which adds flexibility in managing risks. C-D ratio rises to 80%: Report  Banks struggled to mobilize large deposits to meet rising credit demand in the last two financial years.  Outstanding credit disbursed by Scheduled Commercial Banks (SCBs) in 2023-24 reached ₹1,64,98,006 crore, with the Credit-to-Deposit (C-D) ratio rising from 75.8% to 80.3%.  The Incremental Credit-Deposit Ratio (ICDR) remained around 95.94% in March 2024, indicating higher credit growth compared to deposits.  From FY'19 to FY'24, the growth of credit outpaced deposit growth, with alternative investments and cash holdings in rural areas slowing deposit accumulation.  The report highlights the increasing share of young investors under 30 in the equity markets, rising from 22.6% in FY19 to 39.9% in FY25.  The share of investors over 40 years declined during the same period, showing a shift towards younger investors.  Banks and the Government need joint efforts to increase the deposit ratio, focusing on small ticket deposits rather than bulk corporate deposits.  47% of term deposits are held by senior citizens, indicating low interest from younger generations in bank deposits.  The report calls for policy adjustments to help banks increase deposit mobilization and meet credit demands. LIC MF offers Manufacturing Fund NFO for capital growth  LIC Mutual Fund introduced the LIC MF Manufacturing Fund aimed at long-term capital growth.  The New Fund Offer (NFO) will be open from September 20 to October 4, with units being allotted on October 11.  The fund offers a diversified portfolio focusing on companies within the manufacturing theme, including sectors like automobiles, pharmaceuticals, chemicals, heavy engineering, and petroleum products.  It will invest in equity and related instruments, benchmarked to the Nifty India Manufacturing Index (Total Return Index).  Manufacturing is expected to play a pivotal role in India's goal of becoming a $5-trillion economy by 2027.  Investors in this fund may benefit from the positive outlook for the manufacturing sectors. Learn Along: About LIC MF CMD: R.L. Jha Established on : 20th April 1989 IREDA gets nod to raise ₹4,500 cr. via equity issue  Indian Renewable Energy Development Agency Ltd. IREDA received approval from Department of Investment and Public Asset Management (DIPAM) to raise approximately ₹4,500 crore through fresh equity issuance.  The funds will be raised via the Qualified Institutions Placement (QIP) route.  The Government of India will dilute its shareholding in IREDA by up to 7% on a post-issue basis, in one or more tranches. 22 | 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 September 2024  This fund-raising aims to strengthen IREDA’s capital base and enhance its ability to finance renewable energy projects. Learn Along: About IREDA Founded: 1987 Headquarters: India CMD: Pradip Kumar Das Rs 42,300 cr loans given since launch of account aggregator framework  The Account Aggregator (AA) framework facilitated loans worth ₹42,300 crore by March 2024, disbursing 4.22 million loans since its launch three years ago.  The average loan size on the platform is ₹100,237, with 2.12 million loans disbursed in H2FY24 amounting to ₹22,100 crore.  Lending firms use the AA framework for onboarding, underwriting, and monitoring customers.  Transaction costs for lenders can be reduced by 20-25% using the AA framework.  The AA ecosystem includes 163 Financial Information Providers (FIPs) and 475 Financial Information Users (FIUs) across banks, insurance, and investment sectors.  2.12 billion financial accounts are part of the AA ecosystem, including 1.64 billion bank accounts.  AAs act as consent managers, allowing users to securely share financial data for services like loans and insurance.  The AA framework has seen a 15% monthly growth in consent requests, surpassing 100 million consents in August 2024, with 80-90 million users in India. Indian Bank raises Rs 5,000 crore via long-term infrastructure bonds  Indian Bank raised ₹5,000 crore through the issuance of long-term infrastructure bonds.  The issue received 88 bids totaling ₹13,680 crore, against the issue size of ₹5,000 crore, including a greenshoe option.  The bonds were accepted at a coupon rate of 7.24% per annum, with the issue oversubscribed 2.74 times.  The funds will be used to support credit growth and refinancing of infrastructure projects.  These bonds are exempt from maintaining Statutory Liquidity Ratio (SLR) and Cash Reserve Ratio (CRR).  The bonds are senior, unsecured, non-convertible, and have a 10-year maturity.  The bonds are rated AAA with a stable outlook by CRISIL and CARE. Learn Along: About Indian Bank Headquarters: Chennai CEO: Shanti Lal Jain Founded: 15 August 1907 UPI users can now send Rs 5 lakh for some transactions  NPCI has increased the UPI transaction limit for tax payments to Rs 5 lakh per transaction.  This increase applies to payments for taxes, hospital and educational services, and IPOs and government securities.  Acquiring entities must ensure merchants under the MCC-9311 category use UPI for tax payments with the new limit.  The RBI announced this enhancement in its August 8, 2024 monetary policy statement, raising the limit from Rs 1 lakh to Rs 5 lakh.  UPI Circle, a new feature, allows primary account holders to delegate payment responsibilities to trusted secondary users, enhancing flexibility and security.  Previous UPI limit enhancements were introduced in December 2021 and December 2023. Learn Along: 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. 23 | 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 September 2024  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. Cabinet approves ₹10,900 cr. scheme for e-mobility push  The Union Cabinet approved the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-Drive) scheme with an outlay of ₹10,900 crore.  The scheme aims to procure e-buses and set up over 72,000 EV charging stations in cities and highways to address range anxiety.  It will be valid for two years and is led by the Ministry of Heavy Industries.  Subsidies or demand incentives worth ₹3,679 crore will be provided for e-two wheelers (e-2Ws), e-three wheelers (e- 3Ws), e-ambulances, and e-trucks.  The scheme supports 24.79 lakh e-2Ws, 3.16 lakh e-3Ws, and 14,028 e-buses.  ₹4,391 crore is allocated for procuring 14,028 e-buses for 9 cities with populations over 40 lakh, including Delhi, Mumbai, and Bangalore.  ₹2,000 crore will be used to set up charging stations in cities with high EV penetration and along major highways. Tata Steel inks £500 million grant accord with U.K. govt.  Tata Steel has secured a £500-million grant from the UK government to accelerate its £1.25-billion green steel project at the Port Talbot steelworks.  The project aims to replace blast furnaces with electric arc furnaces, reducing UK industrial carbon emissions by 8% and Port Talbot’s by 90%.  Tata Steel has signed a memorandum with the UK Steel Committee, offering voluntary redundancy packages and retraining schemes for affected employees.  The electric arc furnace is expected to be operational within three years, with basic engineering completed.  The UK government announced a minimum voluntary redundancy payout of £15,000 plus a £5,000 retention payment for full-time employees. Learn Along: About UK Capital: London Currency: Pound sterling (£) (GBP) Govt aims to extend additional Rs 5 trn via credit guarantees in 2 years  The government aims to increase credit guarantees for micro and small enterprises by ₹5 lakh crore over the next two years under the CGTMSE scheme.  In the past two years, ₹4 lakh crore in credit guarantees were extended through the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE).  Over the last 22 years, the cumulative credit guarantees amounted to ₹2.6 lakh crore, highlighting the recent surge in support for MSMEs.  The number of Udyam-registered MSMEs has risen sharply from 1.65 crore to 5 crore in just over a year, bridging the gap in formalization. 24 | 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 September 2024  Chakravarthy T Kannan, Secretary General of Quality Council of India (QCI), emphasized the need for a 'Universal Quality Interface' to support decision-making for OEMs.  The ONDC platform is being reconstituted to help MSMEs with quality guarantees and growth opportunities.  The MSME Sustainable (ZED) Certification program aims to promote Zero Defect Zero Effect practices and incentivize MSMEs for ZED Certification. Learn Along:  Credit Guarantee Fund Trust for Micro and Small Enterprises is jointly set up by Ministry of Micro, Small & Medium Enterprises and Small Industries Development Bank of India (SIDBI) to catalyse flow of institutional credit to micro & small enterprises.  CGTMSE was established to improve the flow of institutional credit to micro and small enterprises. Life Insurance companies' new business premium rises 22% in August  New business premiums (NBP) of life insurance companies grew 21.8% Y-o-Y to ₹32,644.09 crore in August, driven by strong growth from LIC.  LIC saw a 35.1% increase in NBP to ₹19,309 crore, primarily due to growth in group single premiums, where LIC holds an 80% market share.  Private sector life insurers grew 6.7% in NBP to ₹13,335 crore, with individual non-single premiums supporting this growth.  SBI Life Insurance experienced a 13.46% drop in premiums, while ICICI Prudential Life grew by 12.3%.  Other insurers like HDFC Life, Bajaj Allianz, and Max Life posted modest growth of 3.6%, 2.8%, and 16.7%, respectively.  In April-August FY25, life insurers' NBP totaled ₹1.54 trillion, up 20.8% Y-o-Y, with LIC's market share rising to 61.7%.  Non-life insurance companies saw muted growth of 4.22% Y-o-Y in premiums, with New India Assurance reporting a 12.51% decline.  Standalone health insurers (SAHIs) posted 24.54% growth in premiums to ₹3,229.12 crore, led by Star Health with 15% growth.  General insurers' premiums for April-August FY25 reached ₹1.08 trillion, up 9%, while SAHIs recorded 24.47% growth to ₹14,829.98 crore. Life insurers’ NBP rose 22% to ₹32,644 cr.  Life insurance companies in India reported a 22% year-on-year rise in new business premium (NBP) for August, reaching ₹32,644.09 crore.  Despite the growth in NBP, the number of new policies issued decreased by 1.44% to 23.94 lakh.  This reflects a shift in demand toward higher insurance protection products, even as overall policy issuance declines.  For the five months ending in August, NBP increased by 20.78% to ₹1,54,193.76 crore, with a 6.27% rise in the number of policies issued. 25 | 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 September 2024  LIC saw a 35.10% surge in August NBP to ₹19,309.10 crore, while the number of policies issued dropped by 4.45%.  For the five-month period, LIC's NBP grew by 27.73%, with a 3.65% increase in policies issued. SBI Life fined Rs 1 cr by insurance regulator for 'violating norms'  SBI Life Insurance was fined ₹1 crore by the IRDAI for violations in dealings with insurance web aggregators and outsourcing practices.  The investigation revealed SBI Life's collaboration with platforms like Policybazaar and Wishfin but without proper disclosure of services or fees, violating transparency norms.  SBI Life made unreported payments worth ₹1.93 crore to a vendor lacking infrastructure, with 95% of revenue transferred to third parties.  IRDAI found outsourcing contracts lacked transparency, and SBI Life paid excessively high fees to web aggregators.  The insurer was directed to develop a comprehensive outsourcing policy and evaluate its systems for outsourcing and conflict resolution.  SBI Life was also cautioned for issuing policies after the withdrawal date and launching products prematurely, with seven instances cited. Learn Along: About IRDAI Founded: 1999 Headquarters: Hyderabad Chairperson: Debasish Panda IRDAI to create state insurance plan mirroring SLBCs:  IRDAI is developing a state insurance plan similar to the State Level Bankers’ Committee (SLBC), aggregating district-level targets to achieve insurance for all by 2047.  The plan will involve equal partnership with state governments to address potential protection gaps in each state.  IRDAI is reducing regulations and promoting innovation to enhance the availability, accessibility, and affordability of insurance products.  Over 97 circulars have been repealed, and 79 returns have been rationalized to simplify the regulatory framework.  Efforts are underway to build a global reinsurance hub in GIFT International Finance Services Centre, Gandhinagar.  A conceptual framework for a Unified Payments Interface (UPI)-like model for the insurance sector, termed the Bima Trinity, is being proposed.  The government is considering amending the Insurance Act to allow new players such as micro, regional, captive, and composite licences.  IRDAI has recommended one-time registration or perpetual licences for intermediaries instead of renewals every two years.  Surety bonds regulations have been eased by lowering solvency requirements, and further adjustments are being considered to support infrastructure growth. IRDAI lowers the solvency requirement for surety bonds to 1.5 times  IRDAI has reduced the solvency requirement for surety bonds from 1.875 times to 1.5 times, responding to feedback from insurers.  The 30% exposure limit per contract underwritten by insurers has been removed, increasing flexibility for insurers.  These changes follow an earlier decision to remove the cap on premiums for mono-line insurers dealing only in surety insurance.  IRDAI's 2022 framework for surety insurance aimed to boost the sector, allowing general insurers to enter the market if they maintain 1.25 times solvency margin. 26 | 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 September 2024  The revisions are intended to expand the surety insurance market and meet growing demand from various sectors, particularly infrastructure.  Surety insurance boosts contractors' liquidity by protecting parties in a contract against financial losses due to non-performance or contract breaches.  The insurance company acts as a guarantor to ensure that a project is completed as per the agreed terms.  Surety bonds are crucial for risk mitigation, helping maintain contractual integrity and ensuring the smooth execution of projects. IRDAI to create state insurance plan mirroring SLBCs  IRDAI is working on creating a state insurance plan similar to the State Level Bankers' Committee (SLBC), focusing on aggregating district-level potential to address protection gaps in states.  The plan aims for equal partnership with state governments, contributing to the goal of achieving insurance for all by 2047.  Efforts are being made to reduce regulations, with 97 circulars repealed and returns rationalized to promote innovation and improve insurance accessibility and affordability.  India's reinsurance landscape is being developed, with the potential for the country to become a global reinsurance hub through the GIFT International Finance Services Centre.  The Bima Trinity (Bima Sugam, Bima Vistar, and Bima Vahak) aims to bring a UPI-like transformation to the insurance sector.  Proposed amendments to the Insurance Act will allow new players such as micro, regional, and composite insurers, with a recommendation for perpetual licenses for intermediaries. Govt looks to increase insurance cover under PMJJBY, PMSBY to Rs 5 lakh  The central government is planning to increase the insurance cover under Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and Pradhan Mantri Suraksha Bima Yojana (PMSBY) from ₹2 lakh to ₹5 lakh.  This move is being considered ahead of state Assembly elections in Maharashtra, Haryana, and Jammu and Kashmir.  The aim is to address the protection gap and provide better financial security for insured individuals and their dependents.  PMJJBY currently has over 200 million subscribers, while PMSBY has 453.6 million enrolments.  The push for higher coverage is part of the government's "insurance for all by 2047" initiative, aimed at increasing insurance penetration.  India's insurance penetration stands at 4%, lower than the global average of 6.8%.  Subscribers will have the option to continue with ₹2 lakh coverage or opt for ₹5 lakh coverage by paying an increased premium.  The current annual premiums are ₹20 for PMSBY and ₹436 for PMJJBY.  PMSBY provides coverage for accidental death and disability, while PMJJBY offers life cover in case of the insured's death.  Both schemes target individuals with bank accounts within specific age ranges, offering affordable insurance coverage. Star Health introduces braille insurance policy for visually impaired  Star Health and Allied Insurance has launched an insurance policy in Braille to empower visually impaired individuals to access health insurance information independently.  The "Special Care Gold" policy offers tailored health coverage for people with disabilities of 40% or more, addressing specific needs related to physical, sensory, or cognitive impairments.  A 2022 study by the Indian Journal of Ophthalmology highlighted that vision impairment leads to an estimated economic loss of ₹646 billion in productivity.  Star Health's initiative includes a financial inclusivity campaign, allowing visually impaired individuals to become health insurance agents and work remotely. 27 | 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 September 2024  This initiative aligns with IRDAI’s 'Insurance for All' vision, promoting both health coverage and financial empowerment.  The Braille policy was developed in collaboration with the National Association of the Blind (NAB) and offers comprehensive coverage for medical treatments and support services.  The launch also saw support from Srikanth Bolla, a visually impaired entrepreneur, who is now a licensed health insurance agent under this initiative.  Star Health offers audio training, assistance from scribes, and a dedicated hotline for agents with disabilities, facilitating their professional development.  This policy represents a significant step towards inclusivity for the 34 million visually impaired people in India.  The initiative includes fully funded exam preparation for new agents, helping them upskill and generate income while working remotely. Maharashtra leads FDI with Rs 70,795 cr in Q1FY25, Karnataka a distant 2nd  Maharashtra secured the highest Foreign Direct Investment (FDI) in India for the second consecutive time, attracting Rs 70,795 crore in Q1 FY 2024-25.  This represents 52.46% of India's total FDI, as per the Department for Promotion of Industry and Internal Trade (DPIIT) data.  The total FDI in India for the quarter was Rs 1,34,959 crore, with Maharashtra contributing the largest share.  Maharashtra received Rs 12,35,101 crore in FDI during 2023-24, surpassing states like Gujarat and Karnataka.  Karnataka followed at a distant second with Rs 19,059 crore in FDI.  The state has maintained the top FDI spot for the past two years. State-wise FDI list for Q1FY25 1. Maharashtra --Rs 70,795 crore 2. Karnataka --Rs 19,059 crore 3. Delhi --Rs 10,788 crore 4. Telangana --Rs 9,023 crore 5. Gujarat -- Rs 8,508 crore 6. Tamil Nadu --Rs 8,325 crore 7. Haryana -- Rs 5,818 crore 8. Uttar Pradesh -- Rs 370 crore 9. Rajasthan -- Rs 311 crore Unified Lending Interface (ULI)  The Public Tech Platform for Frictionless Credit (PTPFC), now called the Unified Lending Interface (ULI), is a pilot project by the RBI aimed at transforming lending, akin to how UPI revolutionized payments.  ULI integrates data from multiple sources like governments, credit agencies, and financial institutions, streamlining the lending process for faster disbursement and lower costs.  Banks need to revamp their systems for seamless integration, with RBI pushing for data-driven lending to reduce risk and improve transparency in credit assessment.  The platform can particularly benefit financial inclusion and microcredit by utilizing business correspondents (BCs) and enhancing repayment and collection processes.  Concerns remain over data availability, as the RBI Financial Inclusion Index lacks transparency, with detailed sub-indices and parameters not being published.  ULI holds promise for transforming credit in India, but challenges like siloed banking operations and outdated data practices need to be addressed for full potential realization. Kotak General Insurance rebrands after major stake acquisition 28 | 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 September 2024  Kotak General Insurance has been rebranded as Zurich Kotak General Insurance after Zurich Insurance Group acquired a 70% stake in the company.  This acquisition, completed on June 18, 2024, follows the Indian government’s increase in the FDI limit to 74% in the insurance sector.  India’s general insurance market is projected to reach US$57.3 billion by 2028, driven by rising consumer awareness, digital infrastructure, and the growing middle class.  The acquisition was valued at approximately US$670 million, with all regulatory approvals secured by June 2024.  The rebranding reflects the collaboration between Zurich Insurance and Kotak Mahindra Bank, aiming to strengthen their position in India’s expanding insurance market.  The company aims to enhance insurance penetration in India, aligning with IRDAI's vision of “Insurance for All” by 2047.  Key leadership appointments include Srinivas Injeti (IAS) as chairman and Tulsi Naidu as a key representative from Zurich. Investment worth $30 billion likely in semicon space in 4 yrs  India is projected to see $30 billion in investments in the semiconductor sector over the next 2-4 years, with 60% of this already cleared by the Union Cabinet.  India aims to establish 4-6 fab plants and 6-10 compound semiconductor plants in the next five years, supported by a ₹75,000 crore subsidy scheme.  The Maharashtra government cleared a proposal for Tower Semiconductor and Adani Group to set up a ₹83,947 crore fab plant in Panvel.  Infineon is also exploring a $2 billion investment in a power semiconductor chip plant in India.  The Cabinet approved a ₹3,400 crore OSAT plant by Kaynes SemiCon in Gujarat, tied with global chipmakers.  India’s semiconductor capacity, with new projects, will reach 0.09 million wafers a month, far behind global standards, needing significant catch-up in the sector. GIC Re slips 5% after Govt plans to dilute 6.78% stake to raise Rs 4,700 cr  GIC Re shares fell by 5.37%, reaching an intraday low of ₹398.60 on September 4, 2024 following the government's announcement to reduce its stake by 6.78%.  The stake sale is expected to raise ₹4,700 crore, marking the first divestment since GI

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