Economic Development

Cabinet approves unified regulator for IFSC

Relevance IN - Prelims (about IFSC) + Mains - GS III economic developments

What's the NEWS

• The Cabinet has approved the setting up of a unified authority that would regulate all the financial services in International Financial Services Centres (IFSC), such as the Gujarat International Finance Tec-City (GIFT) in Gandhinagar.
• This is to be done through the International Financial Services Centres Authority Bill, 2019.

 Know about IFSC

• An IFSC is aimed at encouraging Indian companies that are conducting business in foreign financial centres such as London and Singapore, to bring that business to India by providing them with a global-standard regulatory and business environment.
• It would provide Indian corporates easier access to global financial markets
• IFSC would also complement and promote further development of financial markets in India.
• Currently, the banking, capital markets and insurance sectors in IFSCs are regulated by multiple regulators, i.e. RBI, SEBI and IRDAI.
• An international financial services centre caters to customers outside the jurisdiction of domestic economy, dealing with flows of finance, financial products and services across borders
• An IFSC caters to customers outside the jurisdiction of the domestic economy. Such centres deal with flows of finance, financial products and services across borders.

Economic Development

RBI lowered the repo rate by 25 basis points

Relevance IN - Prelims (about repo rate and MPC + Mains - GS III economic developments

What's the NEWS

• RBI lowers repo by 25 bps in first cut since Aug 2017
• In a major policy shift, the six-member monetary policy committee (MPC) headed by Governor Shaktikanta Das lower the repo rate by 25 basis points to 6.25 per cent in 4-2 vote.
• RBI has thus cut rate for the first time in 17 months. The last rate cut happened in August, 2017.

• Lowering the repo rate by 25 basis points to 6.25 per cent, the policy stance has been changed to neutral from calibrated tightening.
• The shift in stance to neutral provides flexibility to meet growth challenges.
• The change in stance also signals higher chances of more cuts in the coming months if inflation persisted within tolerable limits.
• A large part of the current investment recovery has been driven by government spending and it was necessary to broad base the revival with a private sector boost.
• The limit of collateral free bank loans for farmers to Rs 1.6 lakh from Rs 1 lakh Greater operational freedom for Banks to offer interest rates to bulk deposits.
• The definition of "bulk deposits" has been increased to Rs 2 crore from Rs 1 crore currently.
• The headline inflation is likely to persist within the RBI's tolerable level of 4 per cent. While the decision to change the monetary policy stance was unanimous, Deputy Governor Viral Acharya and another MPC member, Chetan Ghate, voted for status quo in interest rates, while Das and three others voted for a cut in interest rates.
• Repo or repurchase rate is where RBI lends money to commercial banks. India's consumer inflation has averaged at 3 per cent in last five months against RBI's Parliament-mandated target of 4 per cent.
• The economy is estimated to grow at 6.8 per cent during the second half of FY19.
  
  

Science and Technology

Parmanu Tech conference 2019

Relevance IN - Prelims (about the conference) + Mains - GS III (science and technology)

What's the NEWS

• The Parmanu Tech conference was organised by the Ministry of External Affairs and Department of Atomic Energy (DAE).
• The Parmanu Tech conference is aimed at showcasing the societal applications that the Department of Atomic Energy is pursuing

Parmanu Tech 2019 conference highlights

• India has covered a long journey since the inception of Atomic Energy programme by Dr Homi Bhabha based on the peaceful use of nuclear energy.
• India has achieved a unique place in the international community for progress in space technology as well as nuclear energy.
• India has always used technology for constructive use and never for destructive purpose. Most of the societal applications of nuclear energy are not much known to the people.
• Focused efforts are required to create awareness about the benefits of nuclear energy and to allay the fears about radiation and its harms. Nuclear energy will be a big and cost-effective source of energy in future when the other sources of power are gradually depleting.

Economic Developments

Abolition of institutions of Ombudsman for income tax and indirect tax

Relevance IN - Prelims (about the institute ) + Mains - GS III economic developments

What's the NEWS

• The Union Cabinet has approved the abolition of institutions of Ombudsman for income tax and indirect tax.

 Know! the reason behind the abolition

• The office of Income-Tax Ombudsman was set up in 2003 to deal with grievances of public related to the settlement of complaints relating to income tax.
• People are preferring online grievance redressal mechanism.
• The institution failed to achieve its objectives as the number of new complaints have fallen to single digits
• The institution of Ombudsman could not prove to be more effective than regular existing parallel channels of grievance redressal.

Know! about other mechanisms

• Other mechanisms like Centralised Public Grievance Redress and Monitoring System and Aaykar Seva Kendras are being preferred by the people.
• Centralised Public Grievance Redress and Monitoring System Centralized Public Grievance Redress and Monitoring System (CPGRAMS) is an online web-enabled system developed by NIC which aims to enable submission of grievances by the aggrieved citizens from anywhere and anytime (24×7).

Aaykar Seva Kendras

• Aaykar Seva Kendras are established as part of I-T department's ‘Sevottam' scheme which seeks to change the Income-tax department's perception from a purely enforcement agency to a service provider.
• The Aaykar Seva Kendras help taxpayers le their returns and redress their grievances. They are meant to be a single window solution for all tax services.

Information and Technology

Cinematograph Amendment Bill 2019

Relevance IN - Prelims (about the amendment) + Mains - GS III  awareness in the field of I.T

What's the NEWS

• The Union Cabinet has approved the Cinematograph Amendment Bill 2019.
• The Cinematograph Amendment Bill, 2019 aims to tackle film piracy by including the penal provisions for unauthorised camcording and duplication of films

Know! all about the amendments done

• The amendment bill aims to amend the Cinematograph Amendment act 1952which makes film piracy offences punishable with imprisonment up to three years and fines that may extend to 10 lakh or both.
• The amendment states that any person, who without the written authorisation of the copyright owner, uses any recording device to make or transmit a copy of a film, or attempts to do so, or abet the making or transmission of such a copy, will be liable for such a punishment.
• Section 7 of the Cinematograph Act, 1952 deals with who can watch and exhibit which films and penalties for violating terms and conditions related to the exhibition of board-certified films.

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