Economy Of India-Current Affairs-28 August 2019

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1.BIMAL JALAN COMMITTEE ( Economy Of India )

RBI has decided to transfer a sum of ₹1.7 Lakh crore to the Government of India – comprising of ₹1.2 Lakh crore of surplus for the year 2018-19 and ₹52,637 crore of excess provisions identified as per the revised Economic Capital Framework (ECF) adopted – to address the fiscal situation of the government to a great extent.

Bimal Jaalan Committe

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Reserve Bank of India (RBI) had constituted an “Expert Committee to Review the Extant Economic Capital Framework of the RBI” under the Chairmanship of Dr. Bimal Jalan. Major recommendations of the Committee with regard to risk provisioning and surplus distribution are as follows:

  • RBI’s economic capital: A clearer distinction between the two components of economic capital (realized equity and revaluation balances) was recommended.
    • Indeed, realized equity could be used for meeting all risks/ losses as they were primarily built up from retained earnings.
    • Revaluation balances could be reckoned only as risk buffers against market risks as they represented unrealized valuation gains and hence were not distributable.
  • Risk provisioning for market risk: Specifically, It has recommended the adoption of Expected Shortfall (ES) methodology under stressed conditions (in place of the extant Stressed-Value at Risk) for measuring the RBI’s market risk. It has recommended the adoption of a target of ES 99.5 % confidence level (CL).
  • Size of Realized Equity: Especially, Contingent Risk Buffer (CRB) – made primarily from retained earnings – recommended to be maintained within a range of 6.5 % to 5.5 % of the RBI’s balance sheet, comprising 5.5 to 4.5 % for monetary and financial stability risks and 1.0 % for credit and operational risks.
  • Surplus Distribution Policy: Moreover, It recommends a surplus distribution policy, targets the level of equity to be maintained by the RBI. Under it, only if realized equity above its requirement, will the entire net income be transferable to the Government.
  • It also suggested that the RBI’s economic capital framework may be periodically reviewed every five years.

2.DRAFT E-COMMERCE GUIDELINES FOR CONSUMER PROTECTION 2019

Union Consumer Affairs Minister announced that Guidelines for e-commerce firms aimed at protecting the consumer interests issued earlier this month would become mandatory under the new Consumer Protection Act.

consumer protection 2019

Salient features of the draft guidelines:

  • The guidelines will be applicable on all business-to-consumer (B2C) e-commerce platforms.
  • Certainly, It seeks to protect personally-identifiable information of customers and set a 14-day limit for payments toward refund requests. 
  • Furthermore, The Central Consumer Protection Authority (CCPA) established to promote, protect and enforce consumer rights. It would have the power to take action against violating firms.
  • The platforms also required to display terms of the contract with the seller
    • Including return, refund, exchange, warranty, delivery, and mode of payments.
  • Besides, It proposes to make it mandatory for e-commerce entities to accept returns
    • In the event, the products delivered are “defective, wrong or spurious”
    • or if they do not have the characteristics or features advertised.
  • Especially, Every e-commerce entity has to publish the contact details of its grievance officer, who would have to address complaints within one month from the date of receipt.
  • Consequently, the final rules will be notified by December 2019. 

3.OALP BID ROUND-IV ( Economy Of India )

The Government of India has launched the Open Acreage Licensing Programme (OALP) Bid Round-IV for International Competitive Bidding from27th August, 2019which will be carried out under the revised policy framework.

OALP BID ROUND IV

About:

  • The Ministry of Petroleum and Natural Gas (MoPNG) launched the Open Acreage Licensing Programme (OALP) in June 2017 to accelerate the Exploration and Production (E&P) activities in India.
  • Specifically, OALP envisages six-monthly periodic bidding rounds starting from July 1, 2017.
  • Moreover, The government under three (3) OALP Rounds have already awarded Eighty-Seven (87) Blocks covering an area of 1,18,280 sq. Km with leading E&P companies.

OALP Bid Round-IV:

  • In OALP Bid Round-IV, 7 blocks, with an area of approximately 18,500 sq. km.
    • Especially, offered to forbid to the investor community.
  • The Vindhyan basin covers areas under the Son valley, Bundelkhand and Rajasthan.
    • Moreover, the Bengal Purnea basin is in West Bengal and extends into the offshore region of the Bay of Bengal.
  • OALP-IV, the first round held on revamped terms approved in February 2019.
    • Unlike previous rounds where blocks awarded to companies offering a maximum share of oil and gas to the government.
    • Especially, Blocks in little or unexplored Category-II and III basins awarded to companies offering to do maximum exploration program.
    • The revamped policy also provides for the “shorter exploration period, concessional royalty rates
      • Certainly, To expedite oil and gas production and the introduction of alternative dispute resolution mechanisms.

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