Indian Economy-Current Affairs-17 September 2019

Read the Latest Current Affairs related to the Indian Economy. Important for all competitive exams – SSC, UPSC, and Banking. Topic Indian Economy is very Important for UPSC aspirants. The following are the current affairs related to the Indian Economy.

1. GOVERNMENT RELAXES LICENSING RULES FOR MANUFACTURERS

As part of its effort to remove the license raj and ensure ease of doing business, the Government has relaxed licensing rules for manufacturers.

As part of its effort to remove the license raj and ensure ease of doing business, the Government has relaxed licensing rules for manufacturers.

About: 

  • Eventually, the Commerce Ministry said that no compulsory license required for manufacturers of goods, barring four segments namely:
    • Cigars and Cigarettes of tobacco and manufactured tobacco substitutes
    • Electronic Aerospace and defense equipment
    • Industrial Explosives
    • Hazardous chemicals
  • Also, no industrial/arms license required for the manufacturer of any parts or accessories in the defense sector,
    • Unless specifically listed for procuring licenses.

Important Info :

  • Earlier this year, the ministry had proposed to simplify filing procedure for industrial entrepreneur memorandums (IEMs)
    • And said the requirement of filing IEMs at two stages
    • Stood dispensed with for all the businesses that didn’t then require an industrial license.
  • Besides, the two stages of IEMs were intent and implementation.
  • As per the DPIIT’s annual report, all units exempted from obtaining an industrial license
    • And those who invest more than Rs 10 crore in plant and machinery
    • (Rs 5 crore for the services sector) required to file an IEM with the government.

2. AADHAAR AUTHENTICATION MANDATORY FOR NEW DEALERS

The GST Network (GSTN) has decided to make Aadhaar authentication mandatory for new dealers from January 2020 to check malpractices in GST. Aadhaar authentication was earlier optional.

The GST Network (GSTN) has decided to make Aadhaar authentication mandatory for new dealers from January 2020 to check malpractices in GST. Aadhaar authentication was earlier optional.

About:

  • Besides, Under the new rule, those who do not prefer Aadhaar authentication
    • It can go for physical verification, which will be carried out in three days.
  • Indeed, Aadhaar authentication is optional and no physical verification is required.
  • The decision was taken after noticing in the last two years that there is a good number of fly-by-
    • night operators or ghost traders, who make fake invoices. 

Important Info :

Goods And Services Tax (GST) Network?

  • Certainly, GSTN jointly registered by the Central and State Governments as a not-for-profit Company
    •  under Section 8 of the Companies act, 2013 (under new companies Act, not for profit companies governed under section 8).
  • Besides, It set up primarily to provide IT infrastructure and services
    • to the Central and State Governments, taxpayers and other stakeholders for implementation of the GST.
  • Indeed, The restructured GSTN, with 100% government ownership has equity structure between the Centre (50%) and the States (50%). 

3. SMALL FINANCE BANK (SFB)

Reserve Bank of India (RBI) released ‘Draft Guidelines for ‘on tap’ Licensing of Small Finance Banks in the Private Sector’ for comments.

Reserve Bank of India (RBI) released ‘Draft Guidelines for ‘on tap’ Licensing of Small Finance Banks in the Private Sector’ for comments

Salient features of Draft Guidelines: 

  • Registration and licensing: The SFB registered as a public limited company under the Companies Act, 2013. It governed by the provisions of the Banking Regulation Act, 1949 and Reserve Bank of India Act, 1934.
  • Status: The small finance banks (Indian Economy) given scheduled bank status once they commence their operations.
  • Eligibility Criteria:
    • Existing NBFCs, microfinance institutions, and local area banks in the private sector,
      • controlled by residents, can opt for conversion into small finance banks.
    • Proposals from public sector entities and large industrial house/business groups, and autonomous boards/bodies will not be entertained.
  • Capital requirement:
    • Furthermore, The minimum paid-up voting equity capital for small finance banks
      • Rs.200 crore, except for such small finance banks that converted from UCBs.
    • In addition, an SFB required to maintain a minimum capital adequacy ratio
      • of 15 per cent of its risk-weighted assets (RWA) on a continuous basis.
  • Promoters’ contribution: The promoters should hold a minimum of 40 per cent of the paid-up voting equity capital of the bank,
    • Afterward, remain locked in for five years from the date of commencement of the bank’s business.
  • Listing of shares: After the SFB reaches the net worth of Rs 500 crore, the listing will be mandatory within three years of reaching that net worth.
    • Also, SFBs having a net worth of below Rs 500 crore could also get their shares listed voluntarily, subject to fulfillment of the requirements of the capital markets regulator.
  • Foreign shareholding: Furthermore, the foreign shareholding in the small finance bank would be as per the extant Foreign Direct Investment (FDI) policy for private sector banks.

Important Info :

  • A Small Finance Banks (SFB) is set up to undertake basic banking activities of acceptance of deposits and lending to unserved and underserved sections. The RBI had issued the guidelines for licensing of SFBs in the private sector in 2014. The process of licensing culminated in granting in-principle approval to 10 applicants and they have since established the banks.
  • Besides, An ‘on-tap’ facility would mean the RBI will accept applications and grant license for banks throughout the year, at any time, subject to the fulfillment of the set conditions.

4. CENTRAL EQUIPMENT IDENTITY REGISTER (CEIR)

Union Telecom Minister launched Central Equipment Identity Register (CEIR) in a bid to curtail the rampant cloning and theft of mobile phones across the country. The project started on a pilot basis in Maharashtra and later implemented across the country.

Union Telecom Minister launched Central Equipment Identity Register (CEIR) in a bid to curtail the rampant cloning and theft of mobile phones across the country. The project started on a pilot basis in Maharashtra and later implemented across the country

About: 

  • What is it? 
  • Indeed, Central Equipment Identity Register (CEIR) is a database of International Mobile Equipment Identities (IMEIs), the 15-digit numbers that uniquely identify each mobile device.
  • Objective: Besides, It is being launched to curtail the rampant cloning and theft of mobile phones across the country.
  • Objectives of India’s CEIR: Curtailment of counterfeit mobiles, blocking of lost or stolen mobiles across networks thus discouraging theft of mobile phones,
    • maintaining a registry of all equipment identity to facilitate database of valid devices, and facilitate IMEI-based lawful interception.
  • Lists: Concurrently, It will be a database of IMEI numbers that will consist of three lists – white, grey and black.
    • Indeed, Mobile phones with IMEI numbers in the white list will be permitted for use.
    • Consequently, those in the blacklist will be the ones that are reported stolen or lost and will not be allowed to access the network.
    • Those in the greylist will be the ones that do not conform to standards but will be permitted to connect under supervision.

Important Info :

Global scenario: 

  • Besides, The concept of a central identity register advocated by the GSM Association (GSMA),
    • a body representing mobile operators, equipment manufacturers, software and internet companies, among other stakeholders in the telecom ecosystem.
  • Indeed, the equipment identity register is in use across various geographies including Australia, the UK, Azerbaijan, Egypt, and Turkey among others.
  • The CEIR will also have access to GSMA’s global IMEI database, allowing comparison of IMEI numbers to identify counterfeit handsets.

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One Thought to “Indian Economy-Current Affairs-17 September 2019”

  1. Yukta goel

    Very informative 👍

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