Some lenders have asked the Reserve Bank of (RBI) to inject liquidity using foreign exchange swaps as short term currency financing costs surged to a four year high, according to people familiar with the matter. RBI’s Liquidity Management Tools Banking Liquidity Deficit
SARFAESI Act
The FIDC is a collective voice of the NBFC sector and has made some significant requests for reforms for ease of doing business and enhancing liquidity. In the request by the council, they have proposed the reduction in the loan amount threshold for invoking security interest under the SARFAESI Act from ₹20 lakh to ₹1 lakh. Finance Industry Development Council (FIDC) Finance Industry Development Council (FIDC) is a Representative Body of Asset and Loan Financing of the NBFCs registered with the Reserve Bank of India. The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act) The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, is a kind of legislation through which banks recover loans taken by debtors through the sale of their movable or immovable properties through an auction process. In other words, the act aims to reduce NPAs through multiple recovery and reconstruction processes. RBI Guidelines For Asset Reconstruction Companies
6. PLI Scheme
Context: Ministry of Heavy Industries (MHI) has approved incentive claims of ₹ 246 crore submitted by Mahindra & Mahindra and Tata Motors under the ₹ 25,938 crore PLI scheme for the automobile and auto components industry, officials said. PLI Scheme
SEBI bans Ketan Parekh & 21 others
Context: The Securities & Exchange Board of India (SEBI) has unearthed a front-running scam in the securities market and debarred 22 entities, including stock brokers Singapore-based Rohit Salgaocar and Ketan Parekh, for alleged involvement and impounded ₹66 crore as ‘wrongful gains.’ What measures has Sebi introduced?
K – Shaped
Context: Nomura economists have noted that household stress in India has now become K-shaped with the increase in retail debt due to consumption borrowing. K-shaped Recovery
SEBI to Continue Probe in ZEE Listing Norm ‘Violation’
Context: The Securities and Exchange Board of India (SEBI) plans to issue a fresh show cause notice on ZEEL founder-chairman Subhash Chandra and his son Punit Goenka, citing alleged listing norm violations. What measures has Sebi introduced?
Central Government Securities
Context: States will have to pay additional premium over Central government securities to meet the record high borrowing target for three months through March, which could further pressure banking liquidity, investors said. Central Government Securities Central government securities, also known as G-Secs, are debt instruments issued by the central government to raise capital. Generally, G-Secs are considered as risk-free gilt-edged instruments, as there is almost no possibility of default. Treasury Bills Treasury Bond
Crop Insurance Schemes
The Union Cabinet has approved the continuation of Pradhan Mantri Fasal Bima Yojana and Restructured Weather Based Crop Insurance Scheme till 2025-26 with a total budget of ₹69,515.71 crore: Shri Shivraj Singh Chouhan. Restructured Weather Based Crop Insurance Scheme
Restructured Weather Based Crop Insurance Scheme
Integrated Horticulture Development Mission, Rashtriya Krishi Vikas Yojana and the Beej Gram Programme
Context: In a letter to Delhi CM, Agriculture Minister of India said the AAP government has failed to implement major central initiatives, including the Integrated Horticulture Development Mission, Rashtriya Krishi Vikas Yojana, and the Beej Gram programme. Integrated Horticulture Development Mission The Mission for Integrated Development of Horticulture (MIDH) is a national program sponsored by the central government to promote the horticulture sector in the country. The scheme covers almost all crops such as fruits, vegetables, spices, flowers, among others. Rashtriya Krishi Vikas Yojana (RKVY) Rashtriya Krishi Vikas Yojana (RKVY) was launched with the aim of achieving 4% annual growth in the agricultural sector. Under this scheme, states encourage and also incentivize to increase public investment in agriculture and allied sectors. The Beej Gram Yojana The Beej Gram Yojana, also known as the Sub Mission on Seed and Planting Material (SMSP), is a program that provides financial assistance to farmers for the distribution of certified seeds: Bhartiya Beej Sahkari Samiti Limited (BBS