Banker’s View: Limited Transactions Anticipated RBI’s Efforts to Promote Rupee Usage Existing Attempts to Rupee Settlement
Open Market Operations (OMOs)
Open Market Operations (OMOs) are a tool used by the Reserve Bank of India (RBI) to manage liquidity in the economy. OMOs involve buying and selling government securities (G-Secs) in the open market. The RBI uses OMOs to control inflation, boost economic growth, and keep bond yields at desired levels. How OMOs work? Why OMOs are important?
Bank Liquidity Deficit and RBI Intervention
Context: Liquidity Position Trend Since the second half of December 2024 Indian banks have faced a liquidity deficit that touched a level of 236 trillion as on January 20 2025.This liquidity deficit was partly caused by an accumulation of government cash balances with the Reserve Bank of India and RBI interventions in the forex market which drained rupee liquidity. Role of CRR in Liquidity Management Historical Evolution and Effectiveness of CRR Changes Risks of Further CRR Cut RBI’s Liquidity Management Tools
Rashtriya Ispat Nigam Limited (RINL)
Context: The Union Cabinet Committee on Economic Affairs approved a 11,440 crore financial package for RINL aimed at reviving the struggling state owned enterprise operating the Visakhapatnam Steel Plant. Rashtriya Ispat Nigam Ltd (RINL) Key Features and Background Integrated Steel Plant RINL operates Visakhapatnam Steel Plant VSP which is India’s first shore based integrated steel plant built with state of theart technology. Captive Mines and Resources
Payment Aggregator Cross Border (PA-CB)
Context: Crossborder payments firm Skydo, received an in principle approval from the Reserve Bank of India (RBI) to operate as a payment aggregatorcross border (PACB) entity. Payment Aggregator Cross Border (PA-CB) A Payment Aggregator Cross Border (PA-CB) entity is a company that facilitates online cross-border payments for the import and export of goods and services. The Reserve Bank of India (RBI) regulates PA-CBs to ensure accountability and compliance. Source: Business Standard
SEBIs Proposal for Pre Listing Share Trading
Context: The Securities and Exchange Board of India (SEBI) is looking into the concept of introducing a controlled mechanism under which investors will be permitted to offer allotted shares even before the exchange-bound formal listing thereof. This step aims to prevent unofficial trading in postIPO grey market and create greater market transparency. Important Features of the Proposal Rationale Behind the Move Benefits Challenges Grey Market Grey market goods are goods sold outside the authorized distribution channels by entities which may have no relationship with the producer of the goods. This form of parallel import frequently occurs when the price of an item is significantly higher in one country than another.
PM Vishwakarma Scheme
Context: Public sector banks (PSBs) have raised concerns regarding specific restrictions in the PM Vishwakarma scheme that make individuals ineligible if they had taken government loans in the past five years, such as under the Prime Minister´s Employment Generation Programme (PMEGP). PM Vishwakarma Scheme The PM Vishwakarma Scheme targets artisans and craftsmen engaged in areas of blacksmithing goldsmithing pottery carpentry and sculpting many of which comprise traditional Indian crafts. This is more of an activity for preservation of cultural heritage of India but integrates these artisans into the formal economy and global value chains. This is a Central Sector Scheme completely funded by the Government of India.
Draft Guidelines for Ecommerce Platforms
Context: The Bureau of Indian Standards (BIS) has proposed draft guidelines under the Food and Consumer Affairs Ministry that will look at enhancing consumer protection and building up trust in this fast growing ecommerce sector. The guidelines will look for self regulation by ecommerce platforms aimed at mitigating fraudulent practices while improving transparency within the digital shopping landscape Key Features of the Draft Guidelines PreTransaction Stage Contract Formation Stage Post Transaction Stage Objectives of the Guidelines
PM EDRIVE Scheme
Context: With the Union Budget 2025 on the horizon, electric twowheeler (e2W) players are urging the government to introduce critical policy measures and incentives to revitalise the sector. Key demands include relooking at the PM EDRIVE scheme, reduced goods and services tax (GST) rates across the entire EV ecosystem, providing targeted subsidies and innovative financing models. PM EDRIVE Scheme PM Electric Drive Revolution in Innovative Vehicle Upgrade (PM EDRIVE Scheme) is India’s latest push toward the promotion of electric mobility as the replacement to the earlier FAME II policy. It has fiscal as well as infrastructural interventions geared toward a hastened take-up of EVs specifically in two/three-wheeler as well as in bus segments but remarkably, this one does not extend direct subsidy benefits to electric cars. Comparison with the FAME Scheme Impact of Exclusion of Electric Cars in PM EDRIVE Support Measures for Electric Mobility beyond Subsidies Challenges and Way Forward
Hypersonic Missiles
Context: In a crucial milestone in the development of next-generation hypersonic munitions, the DRDO has successfully demonstrated a cutting-edge active cooled scramjet combustor ground test for the first time in India. This is the effort to develop a long-duration supersonic combustion scramjet powered hypersonic technology. Hypersonic Missiles Hypersonic missiles are those missiles that fly at speeds of Mach 5 or higher, which is over five times the speed of sound. They are very maneuverable and can fly low. Hypersonic vs Supersonic Missiles Hypersonic Supersonic
