Daily Current Affairs August 08 2024 | Latest News | Download PDF

Dear Readers, get to know the daily current affairs today covering all the National & International Events provided here in this article. Current Affairs is an important topic in various competitive exams like IBPS/SBI/PO/Clerk and other competitive exams. To score better in this section, be updated with the daily happenings. Check the Daily Current Affairs February 2024 updates here. Revision is very important in remembering current affairs. Candidates after learning the Daily current affairs August 08 2024, can test their knowledge by attempting Current Affairs Quiz provided with answers. Daily current affairs August 08 2024 covers current affairs from International & National news, Important Days, State News, Banking & Economy, Business News, Appointments & Resignation, Awards & Honour, Books & Authors, Sports News, etc.,

Daily Current Affairs PDF of August 08 2024

Get More: Static GK Pdfs

CURRENT AFFAIRS : BANKING & FINANCE

Small Finance Banks’ Net Profit Remains Steady Amidst Over 2x Increase in Provisions     

• Listed small finance banks (SFBs) posted a decline in net profit by 0.6% year-on-year (Y-o-Y) to Rs 1,300 crore during the first quarter of FY25 as provisions and contingencies more than doubled Y-o-Y to Rs 1,277 crore.
• Sequentially, the decline in net profit of SFBs was more pronounced with a 14.6% fall.

Key Highlights :

Provisions and Contingencies:

• Y-o-Y Increase: Provisions and contingencies more than doubled Y-o-Y to Rs 1,277 crore, up by 127.9%.
• Sequential Increase: Provisions and contingencies rose by 51.4% from Rs 843 crore.
• Asset Quality Deterioration:The asset quality of SFBs worsened with gross non-performing assets (NPAs) rising by 47.4% Y-o-Y to Rs 5,976 crore in Q1 FY25.
• Sequentially, gross NPAs increased by 22.2% from Rs 4,888 crore.
• Net NPAs Increase: Net NPAs rose by 55.6% Y-o-Y to Rs 1,929 crore in June 2024.
• Sequentially, net NPAs increased by 25.2% from Rs 1,541 crore.

Net Interest Income (NII):

• Y-o-Y Growth: NII grew by 27.7% Y-o-Y to Rs 5,827 crore.
• Sequential Growth: NII increased by 13.5% from Rs 5,135 crore.

Interest Earned and Paid:

• Interest Earned: Grew by 33% Y-o-Y to Rs 10,709 crore.
• Sequentially, interest earned grew by 13.2%.
• Interest Payout: Rose by 40% Y-o-Y to Rs 4,882 crore.
• Sequentially, interest expenses increased by 12.9%.

Other Income:

• Y-o-Y Growth: Other income, including fees, commissions, and treasury revenues, grew by 31.4% Y-o-Y to Rs 1,447 crore.
• Sequential Decline: Other income fell by 7.7% from Rs 1,567 crore.
• Reasons for Increased Provisions: Increased provisions were due to regulatory requirements for NPAs and preparations for applying for a universal banking licence, which necessitates a net NPA below 1%.

Capital Small Finance Bank and Edelweiss Life Insurance enter into bancassurance tie-up       

• Capital Small Finance Bank Limited (CSFB), and Edelweiss Life Insurance have entered into a bancassurance tie-up.
• This strategic partnership will enable CSFB’s customer base to access Edelweiss Life Insurance’s life insurance products suite, thereby meeting their need for financial security.
• The arrangement aims to enhance the CSFB’s life insurance offerings by providing its customers with access to Edelweiss Life’s digital platform and service touchpoints.

What is Bancassurance?

• Bancassurance is an insurance distribution model where insurance companies partner with banks to sell policies.
• Both the bank and the insurance company get to benefit from this arrangement.
• While the bank earns a commission from the insurance company, the insurer gains from the distribution network of the bank.
• MD & CEO, Edelweiss Life Insurance : Sumit Rai

About Capital Small Finance Bank :

• Headquarters : Jalandhar, Punjab
• MD & CEO : Sarvjit Singh Samra
• Capital Small Finance Bank (formerly Capital Local Area Bank) is an Indian first small finance bank founded in April 2016.

Public Sector Banks’ Non-Performing Assets on Mudra Loans Declined to 3.4% in 2023-24 – Finance Minister Nirmala Sitharaman    

• Finance Minister Nirmala Sitharaman announced that Public-sector banks’ non-performing assets (NPA) associated with the Mudra loan category have declined to 3.4% in 2023-24.
• This marks an improvement from 4.77% in FY21, 4.89% in FY20, and 3.76% in FY19.

Definition of NPAs:

• Non-performing assets (NPAs) are loans or advances for which the principal or interest payment remains overdue for 90 days.
• NPAs are a critical indicator of the health of the banking sector, as high levels of bad loans indicate a higher risk of default, leading to financial instability.

Key Highlights :

• Public Sector Banks : Mudra loan NPAs in private sector commercial banks fell to 0.95% in 2023-24 from a peak of 1.77% in 2020-21 and 0.67% in 2018-19.
• Regional Rural Banks (RRBs): NPAs dropped from 3.86% in 2018-19 to 2.47% in 2023-24.
• Non-Banking Financial Companies (NBFCs): NPAs decreased from 0.47% in 2018-19 to 0.22% in 2023-24.
• Overall NPA: The overall NPA on Mudra loans has reduced to 2.10%.
• Interest Rates for Mudra Loans:Public Sector Banks: Interest rates range between 9.15% and 12.80%.
• Private Sector Banks: Interest rates range from 6.96% to 28%.

About Mudra Loan Scheme :

• Launch: The scheme was launched in 2015 under the Pradhan Mantri Mudra Yojana (PMMY).
• Objective: To provide financial support to micro and small enterprises.

IDBI Bank stake sale: Fairfax, Emirates NBD, Kotak Mahindra Bank get RBI’s ‘fit and proper’ certificate     

• The Reserve Bank of India (RBI) has granted ‘Fit & Proper’ certificates to three potential suitors for IDBI Bank, paving the way for their possible acquisition of the bank.
• The candidates include Fairfax Financial Holding Limited (Toronto, Canada), Emirates NBD (Dubai, United Arab Emirates (UAE), and Kotak Mahindra Bank (Mumbai, Maharashtra).
• Fairfax and Emirates NBD remain strong contenders in the race for IDBI Bank, as they prepare for the next steps in the acquisition process.
• IDBI Bank had received banking regulator RBI’s nod for the ‘fit & proper’ criteria for privatisation, and likely bidders for the strategic sale are expected to begin the process of due diligence early August.
• The government holds 45%, and the Life Insurance Corporation (LIC) has a 49.24% stake in the bank.
• They have proposed to sell a 60.7% stake to a private player with a precondition to dilute the stake to 26% over some time.
• IDBI Bank had received banking regulator RBI’s nod for the ‘fit & proper’ criteria for privatisation, and likely bidders for the strategic sale are expected to begin the process of due diligence early August, 2024.

Recent News :

• In Aug 2024, IDBI Bank is selling its Rs 6,151 crore legacy stressed asset portfolio to Omkara Asset Reconstruction Company (ARC) in a move that will help the government fetch an improved valuation for the proposed stake sale in the lender.

About IDBI Bank :

• Founded : 1 July 1964
• Headquarters : Mumbai, Maharashtra, India
• MD & CEO : Rakesh Sharma
• Owner : Life Insurance Corporation of India (49.24%), Government of India (45.5%)
• It is a Scheduled Commercial Bank under the ownership of Life Insurance Corporation of India (LIC) and Government of India.

Google Pay, PhonePe, and Amazon Pay Apply for Inclusion in Reserve Bank of India’s Digital Rupee Initiative   

• GooglePay, Walmart-backed PhonePe and AmazonPay are among five payment firms seeking to join the Indian central bank’s digital currency (CBDC) pilot by offering transactions via the e-rupee.
• Indian fintech firms Cred and Mobikwik are the other two that have applied to join the pilot.
• Google Pay and Amazon Pay are payments applications offered by Alphabet Inc’s Google and Amazon.com, respectively, that facilitate retail payments over India’s widely used Unified Payments Interface (UPI).
• The five payment firms collectively account for over 85% of digital payments via the UPI, which processes about 13 billion transactions monthly.

About e-rupee :

• The Reserve Bank of India started a pilot for the e-rupee, a digital alternative to the physical currency, in December 2022.
• Initial Surge and Decline:E-rupee transactions initially surged but have since declined from over 1 million per day to about 100,000-200,000 per day, reflecting global challenges in popularizing digital currencies.
• Regulatory Changes:Initially, only banks were authorized to offer e-rupee transactions via mobile applications.
• In April 2024, RBI expanded the scope to include payment firms, allowing them to offer e-rupee transactions upon approval.
• Collaboration and Rollout:Payment firms are collaborating with RBI and the National Payments Corporation of India (NPCI) to integrate e-rupee transactions.
• Access to e-rupee is expected to be rolled out over the next three to four months.

Finance Ministry Directs State-Owned General Insurance Companies to Prioritize Profitable Business Segments

• The finance ministry has asked state-owned general insurance companies to focus on profitable businesses and not to chase top-line but aim for improving profitability.
• The government has infused Rs 7,250 crore in instalments into three public sector general insurance companies:
• National Insurance Company Limited
• Oriental Insurance Company Limited
• United India Insurance Company
• These three general insurance companies have improved their financial performance significantly.

Key Highlights :

Financial Performance Improvement:

• Oriental Insurance: Achieved a profit of Rs 18 crore in FY24, compared to a loss of Rs 5,000 crore in the previous year.
• National Insurance Company: Reduced its loss to Rs 187 crore from Rs 3,800 crore.
• United India Insurance: Decreased its loss to Rs 800 crore from Rs 2,800 crore in FY23.
• New India Assurance: Continued strong performance with profits increasing from Rs 1,000 crore in FY23 to Rs 1,100 crore in FY24.
• Total Government Infusion: The government has injected a total of Rs 17,450 crore into these insurance firms to enhance their financial stability.
• Listing Status:Among the four state-owned general insurers, only New India Assurance Company is listed on the stock exchanges.
• The other three-National Insurance, Oriental Insurance, and United India Insurance are wholly owned by the government.

About Ministry of Finance :

• Cabinet Minister : Nirmala Sitharaman
• Minister of State : Pankaj Choudhary

Ageas Federal Life Insurance Teams Up with PhonePe to Provide Instant Term Insurance      

• Ageas Federal Life Insurance is joining forces with PhonePe to offer Instant Term insurance to their wide-ranging customers.

Key Highlights :

• Eligibility: Users aged 18 to 45 can apply for the ‘Ageas Federal Life Insurance Group Term Plan’ directly through the PhonePe app.
• Application Process:No medical tests or lengthy documentation required.
• Simplified application process through the PhonePe platform.
• Coverage and Premium:Coverage amounts range from 5 lakh to Rs. 25 lakh.
• Premium payments can be made either monthly or annually, starting at 5,000 per year.
• Industry First: Ageas Federal Life Insurance is the first company in the insurance industry to offer Instant Term Insurance through the PhonePe platform.
• Market Impact: The initiative targets to enhance insurance penetration in Indian markets, particularly in Tier 2, 3, and 4 cities, leveraging PhonePe’s large user base of 20 crore monthly active users.

About Ageas Federal Life Insurance :

• Headquarters : Mumbai, Maharashtra, India
• MD & CEO : Vignesh Shahane

About PhonePe :

• Founded : 2015
• Headquarters : Bengaluru, Karnataka, India
• CEO : Sameer Nigam

SEBI Introduces India’s 1st Passive Funds Website at National Stock Exchange and Releases Capital Markets Report     

• The Securities and Exchange Board of India (SEBI) launched India’s first website for passive funds at the National Stock Exchange (NSE), along with unveiling a comprehensive report on the Indian Capital Markets.
• The website provides a comprehensive platform for retail investors and empowers them to easily access information and understand the Indian passive funds industry.

About the Website :

• It provides in-depth information on aggregate industry data, fund-wise data, and screeners for selecting funds based on various parameters such as underlying index, AUM, tracking error, tracking difference, trading volume, TER, comparison of funds, etc.
• The website can be accessed on (www.indiapassivefunds.com).
• It will offer comprehensive information on passive funds such as ETFs and index funds.
• The website also shows that the total AUM of passive funds is Rs 10.22 lakh crore as of June 2024, which comprises Rs 7.79 lakh crore AUM of ETF and Rs 2.43 lakh crore AUM of index fund.

About the Report :

• The report on Indian Capital Markets covers the most significant reforms, important milestones, and technological innovations in the Indian Capital Markets, steered by the regulator, Market Infrastructure Institutions (MIIs), and market participants, along with their impact on investors in the country
• The report includes findings from a survey of retail investors conducted across 12 Indian cities.
• This survey highlights the benefits of recent reforms and suggests potential annual investor benefits of approximately INR 3900 crores with full adoption of key measures such as faster IPO listings and the Application Supported by Blocked Amount (ASBA) system.
• The report provides a comprehensive analysis of India’s Capital Markets evolution over the years, propelled by active retail participation, sustained and high inflow by domestic institutional investors, and strong performance of listed companies.

About SEBI :

• Established : 12 April 1988 as an executive body and was given statutory powers on 30 January 1992 through the SEBI Act, 1992
• Headquarters : Mumbai, Maharashtra
• Chairman : Madhabi Puri Buch (first woman to lead the SEBI)
• SEBI is the regulatory body for securities and commodity markets in India under the ownership of the Ministry of Finance (MoF), GoI.

India and World Bank Sign Agreement for $500 Million Loan to Construct 781 km of Green National Highway Corridors in Four States       

• The Government of India (GoI) and the World Bank have signed an agreement for the Green National Highway Corridors Project (GNHCP).
• The project covers a total length of 781 km across Himachal Pradesh, Rajasthan, Uttar Pradesh, and Andhra Pradesh.
• The World Bank is providing loan assistance of USD 500 million, while the total project cost is USD 1288.24 million (Rs. 7,662.47 crore).
• The scheduled completion date for the last package of the GNHCP project is May 2026.
• The project aims to provide smooth and motorable roads with all-weather connectivity to nearby areas.

Key Highlights :

• Project Features:The project aims to demonstrate safe and green highways with a focus on climate resilience and the use of green technologies.

Key aspects include:

• conservation of natural resources using cement treated sub base/reclaimed asphalt pavement;
• promote use of local/ marginal material such as lime, fly ash, waste plastic; and
• use of bio-engineering measures for slope protection like coco fibre/Jute erosion control blanket with shrub/grass plantation, hydroseeding, Shotcrete crib wall with vegetation, Bamboo Plantation, Hedge Brush Layer, interlink chain mesh with grass strips, Geocell with hydroseeding etc. in slope protection works;
• Environmental Impact:The use of green technologies and bio-engineering solutions, particularly in hilly areas, is expected to reduce carbon emissions and conserve natural resources during the project’s construction and operation phases.

About World Bank :

• Established : July 7, 1944
• Headquarters : Washington, D.C., United States
• President : Ajay Banga

HDFC Securities Partners with Vested Finance to Provide Global Investment Opportunities for Indians and Non-Resident Indians                            

• HDFC Securities, a leading stock broking company and a wholly-owned subsidiary of HDFC Bank, has announced a strategic tie-up with Vested Finance, a popular US-based investment platform, for democratising global investing for Indians and Non-Resident Indians (NRIs).

Key Highlights :

• Global Investing 2.0:Features: This initiative will offer enhanced protection, innovative features, and deep portfolio diversification to investors.
• Enhanced Investment Opportunities:Service Expansion: HDFC Securities will provide clients with greater investment opportunities and features through Vested’s platform, improving the overall investment experience.
• Account Setup:Ease of Use: A new Vested account with HDFC Securities can be opened and funded within minutes.

About HDFC Securities :

• Founded : 2000
• Headquarters : Mumbai, Maharashtra, India
• MD & CEO : Dhiraj Relli

CURRENT AFFAIRS: NATIONAL NEWS

Union Government Accelerates Employment-Linked Incentive (ELI) Scheme

• Union Minister of Labour & Employment and Youth Affairs & Sports, Dr Mansukh Mandaviya, has directed an accelerated implementation of the Employment-Linked Incentive (ELI) Scheme, as announced in the Union Budget 2024-25.
• The scheme aims to generate over 2 crore jobs over the next two years.

Meeting Overview:

• Review and Planning: Mandaviya reviewed the ELI Scheme and its implementation plan with Union Minister of State for Labour & Employment, Smt. Shobha Karandlaje, and senior officials from the Ministry and EPFO.
• The focus was on ensuring the scheme benefits reach the intended recipients effectively.

Scheme Details:

• Employment Creation: The ELI Scheme is designed to foster job creation and provide incentives to both employers and employees.
• This initiative is part of a broader Prime Minister’s package aimed at facilitating employment, skilling, and other opportunities for 4.1 crore youth over five years, with a central outlay of Rs. 2 lakh crore.

Impact Goals:

• Sustainable Employment Ecosystem: The scheme aims to create a sustainable and inclusive employment ecosystem, significantly enhancing livelihood opportunities across the country.

India Targets 80 Million Tonnes Coking Coal Production for FY25

• India aims to produce 80 million tonnes (mt) of coking coal in FY25, marking a 20% increase from the previous year’s 66.55 mt.
• This goal is part of a strategy to reduce the country’s reliance on imports of this critical steel-making feedstock.

Enhancing Domestic Production:

• Washeries Expansion: To support the production increase, Coal India Ltd. plans to commission two new coking coal washeries and monetize four existing ones. This expansion is crucial for improving the quality of domestic coking coal.
• Steel-Mill Expansion: Major steel producers such as Tata Steel, JSW, and SAIL are expected to invest in both brownfield and greenfield projects to boost their capacity.

Import Dependency:

• Current Imports: India is the world’s largest importer of coking coal, with over 58 mt of imports. The country’s coking coal washing capacity currently stands at 23 million tonnes per annum (mtpa), including 9.26 mtpa by SAIL and 7.6 mtpa by Tata Steel.

Policy and Strategy:

• Blending and Washing: The domestic coking coal has high ash content, necessitating washing and blending with lower ash coal to meet steel-making standards. The Steel Ministry is considering policies to enhance the use of washed coking coal.
• Future Capacity: Coal India Ltd. plans to establish 11 new washeries with a total capacity of 33 mtpa, of which 15 mtpa will be dedicated to the steel sector.

• Ministerial Insights:

• Coal Minister’s Statement: Union Coal Minister G. Kishan Reddy highlighted that the steel sector’s domestic blending of coking coal is expected to rise from 10-12% to 30-35% to reduce import dependency.

MCA’s new LLP exit policy takes effect on August 27

• The Ministry of Corporate Affairs (MCA) has announced an extension of services provided by The Centre for Processing Accelerated Corporate Exit (C-PACE) to include voluntary closures of Limited Liability Partnerships (LLPs).
• This extension is facilitated by amendments to the LLP Rules through the Limited Liability Partnership (Amendment) Rules 2024.

Effective Date:

• • Implementation: The new amendments will come into effect from August 27, 2024, as per the MCA’s notification.

Background:

• • C-PACE Introduction: C-PACE was established in 2023 to streamline and centralize the process for the strike-off (or closure) of companies. The initiative aims to reduce the timeline for company exits and enhance entrepreneurial efficiency.
  • Launch Date: The C-PACE system went live on May 1, 2023.

Objective:

• • Streamlined Process: The extension to LLPs is designed to further simplify and expedite the voluntary closure process for businesses, aligning with the broader goal of improving the ease of doing business and fostering entrepreneurship in India.

IIT Madras receives donation of ₹228 crore from alumni

• IIT Madras has marked a significant milestone by receiving its largest-ever donation of ₹228 Crore from Dr. Krishna Chivukula.
• In honour of this contribution, an academic block at the institute has been named the ‘Krishna Chivukula Block’.
• This donation is part of a larger increase in funding for the institute, with overall funding rising by 135% and alumni contributions surging by 282% in the 2023-24 financial year.

Historic Donation:

• Amount: ₹228 Crore.
• Donor: Dr. Krishna Chivukula (MTech, 1970), founder and CEO of Indo-MIM.
• Significance: The largest single donation in the history of IIT Madras.

Naming Ceremony:

• Event Date: August 6, 2024.
• Named Block: ‘Krishna Chivukula Block’.
• Attendees: Dr. Krishna Chivukula, Prof. V Kamakoti (Director, IIT Madras), Prof. Mahesh Panchagnula (Dean, Alumni and Corporate Relations), Mr. Kaviraj Nair (CEO, Office of Institutional Advancement), along with faculty, researchers, staff, and students.

Funding Achievements:

• Total Funding Raised (2023-24): ₹513 Crore.
• Increase: 135% increase from the previous financial year.
• Alumni Contributions (2023-24): ₹367 Crore.
• Increase in Alumni Contributions: 282% over the previous year.

CURRENT AFFAIRS : STATE NEWS

Jharkhand Chief Minister Hemant Soren Launches ‘Upasthiti Portal’ for Health Department Employees     

• Jharkhand Chief Minister Hemant Soren launched the ‘Upasthiti Portal’.
• The portal was launched on behalf of the Health, Medical Education and Family Welfare Department.
• Aim of the portal : To ensure the daily attendance of all doctors, para-medical workers, contract workers and other workers working under the Health Department.
• Through this portal, cross verification of biometric attendance being recorded by the employees of the Health Department will be done.

About Jharkhand :

• Governor : Santosh Kumar Gangwar
• Chief Minister : Hemant Soren
• Capital : Ranchi
• Tiger Reserve : Palamu Tiger Reserve
• Wildlife Sanctuary : Dalma Wildlife Sanctuary, Gautam Budha Wildlife Sanctuary, Udhwa Lake Bird Wildlife Sanctuary

CURRENT AFFAIRS: BUSINESS NEWS

Government Introduces Relief Measure for Long-Term Capital Gains Tax on Property

• The Finance Minister, Nirmala Sitharaman, proposed reducing the long-term capital gains (LTCG) tax on property from 20% to 12.5% while removing the indexation benefit.
• The Indian government has proposed an amendment allowing taxpayers to choose between two methods of calculating long-term capital gains (LTCG) tax on properties acquired before July 23, 2024.
• This amendment aims to address concerns raised about the impact of removing indexation benefits.

Government Response:

• Amendment in Finance Bill 2024: In response to public outcry and feedback from real estate stakeholders, the Union government is amending the LTCG tax provisions.
• The amendment, part of the Finance (No. 2) Bill, 2024 introduced in the Lok Sabha, gives property owners flexibility to choose the more beneficial tax regime.

Key Amendment Details:

• Two Taxation Options:
  • Option 1: Homeowners can opt for the new rule, which imposes a 12.5% tax on capital gains without the benefit of indexation.
  • Option 2: Alternatively, they can choose the old rule, which imposes a 20% tax with the benefit of indexation.
• Applicability: This choice is available to those who have acquired property before July 23, 2024. The amendment ensures that homeowners can select the option that results in lower tax liability.

Details of the Amendment:

• Choice of Tax Calculation:
  • New Scheme: 12.5% LTCG tax without indexation.
  • Old Scheme: 20% LTCG tax with indexation.
  • Taxpayer Benefit: Taxpayers can choose the method that results in the lower tax liability.

Implementation:

• Finance Bill 2024: The amendment will be introduced in the Finance Bill, tabled in the Lok Sabha on August 6, 2024.
• Effective Date: The choice applies to properties acquired before July 23, 2024.

Banks write off loans worth Rs 9.90 trillion in last 5 years:

• Banks have written off loans totalling ₹9.90 trillion over the past five financial years.
• Annual Write-Offs:
  • • 2023-24: ₹1.70 trillion (down from ₹2.08 trillion in 2022-23).
    • 2019-20: Highest at ₹2.34 trillion.
    • 2020-21: ₹2.02 trillion.
    • 2021-22: ₹1.74 trillion.
  • Recovery Rate: Recovery during this period was ₹1.84 trillion, approximately 18% of the total write-offs.
• Non-Performing Assets (NPAs):
  • Gross NPAs Data:
    • March 31, 2020: ₹8,96,082 crore (8.21% GNPA ratio).
    • March 31, 2021: ₹8,35,051 crore (7.33% GNPA ratio).
    • March 31, 2022: ₹7,42,397 crore (5.82% GNPA ratio).
    • March 31, 2023: ₹5,71,544 crore (3.87% GNPA ratio).
    • March 31, 2024 (provisional): ₹4,80,687 crore (2.75% GNPA ratio).
  • Trend: Gross NPAs have been declining over the past five years.
• Banking Sector Resilience:
  • Liquidity Coverage Ratio (LCR): Remained above 130% from January-June 2024, surpassing the regulatory threshold of 100%.
  • Investment Portfolio: Largely resilient to market risks from adverse price movements.
  • Financial Performance:
    • 2017-18: SCBs incurred losses of ₹32,437 crore.
    • 2023-24: Net profit improved to ₹3,41,672 crore.
  • Capital Adequacy Ratio (CRAR): Improved to 16.84% as of March 31, 2024, from 13.85% on March 31, 2018.
• Fake Currency:
  • Current Figures: Fake currency incidents remained at 2,22,639 in FY24, unchanged from the previous fiscal year.
  • NIA Cases: 39 cases related to Fake Indian Currency Notes (FICN) registered since the withdrawal of ₹500 and ₹1000 notes in 2016, with counterfeit currency worth ₹8,50,62,500 seized.
  • Government Measures: Ongoing steps and new security features introduced to combat counterfeit currency.

Despite PLI push, electronics imports top $20 bn for fifth quarter

• India’s import of electronic goods exceeded $20 billion for the fifth consecutive quarter.
• Q1 FY25: Electronic goods worth $22.8 billion were imported, slightly down from $23.4 billion in the previous quarter.
• Composition of Imports:
  • Electronic Components and Computer Hardware: Accounted for more than half of the electronic goods imported in the June quarter of FY25, up from 46% before the pandemic.
  • Telecom Equipment and Consumer Electronics:
    • Over $4 billion worth of telecom equipment imported.
    • $1.1 billion worth of consumer electronics imported.
  • Share Trends: Consumer electronics and telecom instruments’ share in total imports has decreased to 24% from 33% in FY19.
• Dependence on Imports:
  • Despite increases in domestic manufacturing, high-value imports remain significant, particularly for mobile phone components.
  • Domestic Manufacturing: Components manufactured locally now account for 15% of an assembled mobile phone’s value, up from 3-4% a decade ago.
• Policy Response:
  • PLI Scheme: Introduced in April 2020 to boost local manufacturing and investment in mobile phones. A similar scheme for IT hardware began last year.
  • Expert Opinion: There is a call for a PLI scheme for electronic components to further reduce import dependence.
• Import Trends by Sector:
  • Crude Petroleum: Imports grew by 22.4% in the June quarter, driven by discounted Russian prices.
  • Pharmaceuticals: Imports increased by about 11%.
  • Engineering Products: Imports rose by 5.4%.
  • Gems and Jewellery: Imports contracted by 0.5%.

Insurers to pay 12% penalty for delay in Fasal Bima settlement

• The Pradhan Mantri Fasal Bima Yojana (PMFBY) has introduced a 12% penalty for delayed claim settlements, directly benefiting farmers.
• The scheme now mandates remote sensing for crop loss assessments and employs a centralized portal for real-time tracking.
• With significant enrollment and coverage increases, PMFBY aims to enhance its effectiveness and support farmers better.
• The Finance Ministry has allocated Rs 15,000 crore for FY25, reflecting the scheme’s importance in safeguarding agricultural interests.

New Penalty Provision:

• Penalty Rate: 12% on delayed claims.
• Recipient: The penalty amount will be credited directly to the farmer’s account.
• Reason for Delay: Common delays include late release of premium subsidy by states and disputes between insurance companies and states.

Assessment and Implementation:

• Loss Assessment: Mandatory use of remote sensing for at least 30% of crops, moving away from visual assessments.
• Centralized System: Introduction of a common portal for real-time tracking of claim settlement.

Guidelines and Conditions:

• Non-Compliance Consequence: States or UTs with significant delays in releasing premium subsidies may be barred from implementing the scheme in subsequent years.
• Cutoff Dates: March 31 for kharif season and September 30 for rabi season.

Scheme Overview:

• Launch Year: 2016.
• Current Coverage: Implemented in 22 states and UTs.
• Premium Rates: 1.5% for rabi crops, 2% for kharif crops, and 5% for cash crops.
• Premium Sharing: Balance premium shared between the Centre and states; 9:1 ratio for North-Eastern states.
• Optional Participation: Farmers can opt in voluntarily.

Enrollment and Coverage:

• FY24 Enrollment: 39.7 million farmers.
• Coverage Area: Over 61 million hectares in FY24, a 21% increase from 2022-23.
• Financials: Rs 32,440 crore paid by farmers in premiums since 2016, with claims amounting to Rs 1.63 trillion.

Budget Allocation:

• FY25 Allocation: Rs 15,000 crore.
• Revised FY24 Estimate: Rs 14,600 crore.

Global Context:

• Rank: PMFBY is the third-largest insurance scheme globally by premium amount

CURRENT AFFAIRS: AWARDS AND HONOURS

Vivek Verma of Spray Engineering Devices Limited Receives National Energy Efficiency Innovation Award 2021

• Vivek Verma, Managing Director of Spray Engineering Devices Limited (SED), Mohali, Punjab, was awarded the first prize in the Industries Category for his innovation, “Low Temperature Evaporation Technology.”
• The award was presented during the National Energy Efficiency Innovation Award 2021 ceremony, part of the Azadi ka Amrit Mahotsav

• Event Details:
  • The prestigious award ceremony took place on National Energy Conservation Day at Vigyan Bhawan, New Delhi.
  • Shri R.K. Singh, Hon’ble Union Minister for Power and New & Renewable Energy, along with Shri Krishan Pal, Hon’ble Union Minister of State for Power and Heavy Industries, felicitated the award winners.
  • The event was attended by several high-level dignitaries.
• Company Background:
  • Spray Engineering Devices Limited (SED) is a multidisciplinary engineering company based in Mohali, Punjab, with a mission to drive sustainable environmental development and unlock perpetual food and energy resources.
  • The company’s innovative Low Temperature Evaporator (LTE®) technology has significantly impacted the biofuel, water recycling, and agro-processing sectors.
  • About SED: Established in 1992, Spray Engineering Devices Limited is a multidisciplinary engineering company based in Mohali, Punjab. It specializes in evaporation, heat exchange, condensation, and crystallization technologies.
• Innovation and Impact:
  • The Low Temperature Evaporation Technology developed by SED is a patented solution that recycles thermal energy, offering clean and green alternatives.
  • The company aims to leverage non-food biomass from agriculture as a renewable source for producing green chemicals and polymers, contributing to India’s low carbon footprint strategy.

Additional Recognitions:

• CSIR Diamond Jubilee Technology Award – 2020: SED also received this prestigious award for its Low Temperature Evaporation Technology, accompanied by a cash prize of Rs. 10 Lakh. The award was announced during the 80th CSIR Foundation Day Celebration, attended by Vice President M. Venkaiah Naidu.

CURRENT AFFAIRS : APPOINTMENTS & RESIGNATIONS

Government Panel Approves CS Setty’s Appointment as State Bank of India Chairman for 3-Year Term     

• The government appointed Challa Sreenivasulu Setty as Chairman of the country’s biggest lender State Bank of India (SBI) for a period of 3 years starting from August 28, 2024.
• He will replace Dinesh Kumar Khara, who is retiring on August 28, 2024, upon reaching the age of 63, which is the upper age limit for the SBI chairman position.
• The appointment was approved by the Appointments Committee of the Cabinet (ACC) based on the recommendation of the Financial Services Institutions Bureau (FSIB).
• Besides, the government has also appointed Rana Ashutosh Kumar Singh,presently serving as a Deputy Managing Director (DMD) at SBI to take over as managing director (MD) at SBI.
• Singh, currently DMD, will serve as MD on June 30, 2027, the age of superannuation.
• SBI, the country’s largest lender, has a chairman assisted by four MDs.

About C S Setty :

• Setty started his career with SBI in 1988 as a Probationary Officer.
• He also headed various task forces and committees formed by the Government of India, which had earlier looked after the retail and digital banking portfolio of the bank.
• He has rich experience in Corporate credit, Retail, Digital and International banking and banking in developed markets.

About SBI :

• Established : 1 July 1955
• Headquarters : Mumbai, Maharashtra, India

Swiggy Instamart Names Sairam Krishnamurthy as Chief Operating Officer      

• Swiggy Instamart, the quick commerce arm of IPO-bound food and grocery delivery firm Swiggy, has appointed Sairam Krishnamurthy as the firm’s senior vice president and chief operating officer (COO).

Role and Responsibilities:

• Overseeing dark store operations.
• Managing infrastructure operations.
• Leading city growth and expansion.

About Sairam Krishnamurthy :

• With over 18 years of experience in leadership roles in the retail and FMCG sectors, he joins Swiggy Instamart as its first COO.
• Prior to joining Swiggy, he spent over three-and-a-half years at More Retail, an Amazon company (through a joint venture with Samara Capital) that runs a chain of offline retail stores.
• He spent several years at Unilever and Hindustan Unilever Ltd (HUL) where he led several brands and grew their presence.

Daily CA One- Liner: August 8

• Union Minister of Labour & Employment and Youth Affairs & Sports, Dr Mansukh Mandaviya, has directed an accelerated implementation of the Employment-Linked Incentive (ELI) Scheme, as announced in the Union Budget 2024-25
• India aims to produce 80 million tonnes (mt) of coking coal in FY25, marking a 20% increase from the previous year’s 66.55 mt.
• The Ministry of Corporate Affairs (MCA) has announced an extension of services provided by The Centre for Processing Accelerated Corporate Exit (C-PACE) to include voluntary closures of Limited Liability Partnerships (LLPs).
• IIT Madras has marked a significant milestone by receiving its largest-ever donation of ₹228 Crore from Dr. Krishna Chivukula
• The Finance Minister, Nirmala Sitharaman, proposed reducing the long-term capital gains (LTCG) tax on property from 20% to 12.5% while removing the indexation benefit.
• Banks have written off loans totalling ₹9.90 trillion over the past five financial years.
• India’s import of electronic goods exceeded $20 billion for the fifth consecutive quarter.
• The Pradhan Mantri Fasal Bima Yojana (PMFBY) has introduced a 12% penalty for delayed claim settlements, directly benefiting farmers.
• Vivek Verma, Managing Director of Spray Engineering Devices Limited (SED), Mohali, Punjab, was awarded the first prize in the Industries Category for his innovation, “Low Temperature Evaporation Technology
• Listed small finance banks (SFBs) posted a decline in net profit by 0.6% year-on-year (Y-o-Y) to Rs 1,300 crore during the first quarter of FY25 as provisions and contingencies more than doubled Y-o-Y to Rs 1,277 crore.
• Capital Small Finance Bank Limited (CSFB), and Edelweiss Life Insurance have entered into a bancassurance tie-up.
• Finance Minister Nirmala Sitharaman announced that Public-sector banks’ non-performing assets (NPA) associated with the Mudra loan category have declined to 3.4% in 2023-24.
• The Reserve Bank of India (RBI) has granted ‘Fit & Proper’ certificates to three potential suitors for IDBI Bank, paving the way for their possible acquisition of the bank.
• GooglePay, Walmart-backed PhonePe and AmazonPay are among five payment firms seeking to join the Indian central bank’s digital currency (CBDC) pilot by offering transactions via the e-rupee.
• The finance ministry has asked state-owned general insurance companies to focus on profitable businesses and not to chase top-line but aim for improving profitability.
• Ageas Federal Life Insurance is joining forces with PhonePe to offer Instant Term insurance to their wide-ranging customers.
• The Securities and Exchange Board of India (SEBI) launched India’s first website for passive funds at the National Stock Exchange (NSE), along with unveiling a comprehensive report on the Indian Capital Markets.
• The Government of India (GoI) and the World Bank have signed an agreement for the Green National Highway Corridors Project (GNHCP).
• HDFC Securities, a leading stock broking company and a wholly-owned subsidiary of HDFC Bank, has announced a strategic tie-up with Vested Finance, a popular US-based investment platform, for democratising global investing for Indians and Non-Resident Indians (NRIs).
• Jharkhand Chief Minister Hemant Soren launched the ‘Upasthiti Portal’.
• The government appointed Challa Sreenivasulu Setty as Chairman of the country’s biggest lender State Bank of India (SBI) for a period of 3 years starting from August 28, 2024.
• Swiggy Instamart, the quick commerce arm of IPO-bound food and grocery delivery firm Swiggy, has appointed Sairam Krishnamurthy as the firm’s senior vice president and chief operating officer (COO).