Daily Current Affairs August 21 2024 | Latest News | Download PDF

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CURRENT AFFAIRS : BANKING & FINANCE

Outward remittances under Reserve Bank of India’s Liberalised Remittance Scheme (LRS) declined by 24% to $6.9 billion in Q1 FY25

• Outward remittances under the Reserve Bank of India’s (RBI’s) Liberalised Remittance Scheme (LRS) dropped by 24.39% year-on-year to $6.9 billion in Q1 FY25, compared to $9.1 billion in the same period the previous year.

Key Highlights :

• June 2024 Remittances: Overall remittances in June 2024 fell by around 44% year-on-year to $2.18 billion, with declines observed across most categories.
• Surge in Q1 FY24: In Q1 FY24, there was a surge in outward remittances due to changes in tax collection at source (TCS) norms on LRS, which were set to take effect on July 1, 2023, but later deferred to October 1, 2023.
• About LRS scheme : The LRS scheme, introduced in 2004, allows resident individuals to remit up to $250,000 per financial year for permissible current or capital account transactions.
• The scheme’s initial limit was $25,000, which has been gradually revised.
• Category-wise Remittance Declines:International Travel: Dropped by 6% to $3.8 billion in Q1 FY25 from $4.07 billion in Q1 FY24.
• Maintenance of Relatives: Fell by 46% year-on-year to $983.2 million.
• Gifts: Decreased by nearly 41% to $811.9 million.
• Investments in Equity and Debt: Declined to $318.02 million from $503.73 million.
• Deposits: Dropped by 61% year-on-year to $164.7 million.
• Overseas Education: Decreased by nearly 14% to $596.08 million.
• Categories with Increases:Medical Treatment: Rose by 43.5% year-on-year to $24.46 million.
• Donations: Increased by 3.6% to $4.29 million.

Reserve Bank of India Study Forecasts Private Capex to Rise to ₹2.45 Trillion in FY25

• The Reserve Bank of India (RBI) study forecasts that private sector capital expenditure (capex) could rise to ₹2.45 trillion in FY25, up from ₹1.59 trillion in FY24.

Key Highlights :

• Record Sanctioned Projects:In FY24, banks and financial institutions sanctioned projects totaling a record ₹3.90 trillion.
• 54% of this amount was planned to be invested by the end of FY23.
• 30% is earmarked for FY25.
• The remaining 16% is projected for subsequent years.
• Financing Channels : The other channels of financing include borrowing through the external commercial borrowing (ECB) route and the initial public offering (IPO) route.
• Sectoral Investment Focus :According to the RBI, the infrastructure sector continued to attract the major share of envisaged capital investment, led by the ‘roads & bridges’ and ‘power’ sectors, reflecting the government’s push towards infrastructure development.

Union Finance Minister Nirmala Sitharaman Chairs Regional Rural Banks (RRBs) Review Meeting in New Delhi

• Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman chaired a review meeting of Regional Rural Banks (RRBs) in New Delhi.
• The meeting was also attended by the Secretary-Designate, Department of Financial Services (DFS), Additional Secretary, other senior officials from the DFS, representatives of RBI, SIDBI, NABARD, Chairpersons of RRBs and CEOs of sponsor banks.

Key Highlights :

• Meeting Focus:The review meeting included all 43 RRBs and concentrated on:
• Business performance
• Upgrading digital technology services
• Fostering business growth in MSME clusters
• Loan Sanctioning and Beneficiary Identification:The Finance Minister urged RRBs, with support from their sponsor banks, to focus on clear identification of beneficiaries for loans under schemes like PM Vishwakarma and PM Surya Ghar Muft Bijli Yojana.
• Agricultural Credit:RRBs were directed to increase their share in ground-level agriculture credit disbursement.
• Financial Performance:43 regional rural banks (RRBs) posted a consolidated net profit of ₹7,796 crore in FY24, up 26% from ₹6,178 crore in FY23, brightening prospects for some to tap the capital market, including through an initial public offering (IPO).
• Further, the number of RRBs posting a net loss has declined to three (aggregating ₹225 crore) from six (aggregating ₹1,205 crore).
• The consolidated net profit of 40 RRBs in FY2024 was ₹7,571 crore, an all-time high, according to the National Bank for Agriculture and Rural Development’s (NABARD) annual report.
• Historical Performance:37 RRBs reported a consolidated net profit of ₹4,974 crore in FY23.

About RRB :

• RRBs were established in 1975 to provide credit to small and marginal farmers, agricultural labourers, artisans, and weaker sections of society.
• RRBs are joint ventures with:
• Central government (50% stake)
• State government (15%)
• Sponsor bank (35%)
• Asset Quality:Gross non-performing assets (GNPA) decreased to 6.1% of gross advances from 7.3% in FY23, the lowest in 10 years.
• Net NPAs improved to 2.4% of net advances from 3.2%.
• Recapitalisation Assistance:The government sanctioned ₹10,890 crore of recapitalisation assistance to RRBs in FY2022 and FY2023, significantly surpassing the total capital infusion of ₹8,393 crore from 1975 to 2021.
• The recapitalisation and viability plan contributed to the significant improvement in RRBs’ performance.
• RRBs Coverage : As of March-end 2024, there were 43 RRBs (sponsored by 12 scheduled commercial banks – 11 public sector banks and Jammu & Kashmir Bank) with 22,069 branches spread across 26 States and three Union Territories (Puducherry, Jammu & Kashmir, and Ladakh).
• They had 31.3 crore deposit accounts and three crore loan accounts.
• Deposits and advances of RRBs stood at ₹6.6 lakh crore (3.2% share in deposits among all banks) and ₹4.7 lakh crore (2.9% share in advances among all banks), respectively, as of March-end 2024.

Fintechs urged to join financial cyber fraud reporting platform

• Fintech Association of India (FACE) has asked its members to explore joining the Citizen Financial Cyber Fraud Reporting and Management System (CFCFRMS) – part of the National Cybercrime Reporting Portal.
• CFCFRMS provides an integrated platform where all stakeholders, including states and union territories, major banks and financial intermediaries, payment wallets, crypto exchanges and e-commerce companies work in tandem for quick, decisive, and system-based effective action to prevent the flow of money from victims’ account to cyber fraudsters’ account.

Key Highlights :

• Nodal Officer Appointment:FACE members are advised to appoint a nodal officer to handle customer grievances and collaborate with law enforcement to prevent fraud.
• Significance for FACE : The move is significant on the part of FACE and should be seen in the context of it being an applicant to become a self-regulatory organisation (SRO) among fintech lenders.
• RBI’s Digital Payments Intelligence Platform (DPIP) : It may be recalled that the RBI is also to set up a DPIP to harness advanced technologies to mitigate payment-fraud risks.
• Committee for DPIP : A committee has been set up under the chairmanship of A P Hota, former managing director and chief executive officer of the National Payments Corporation of India, which is expected to give its recommendations within two months.
• RBI’s Survey on Digital Payment Fraud : The Report on Currency and Finance FY24 themed ‘India’s Digital Revolution State that , according to an RBI survey on awareness and use of digital payments, 94.5% users held that they had not experienced any fraud.
• The incidence of an encounter with fraud or attempted fraud was lower in metros (4.1%) compared to semi-urban areas (6.4%).
• Vishing – “voice phishing”, which involves defrauding people over the phone, enticing them to divulge sensitive information emerged as the most prevalent method in frauds or attempted frauds (54.2%), followed by phishing (37.2%), misuse of ‘collect request’ (28.7%, and remote access (25.5%).
• Digital Fraud Involving Fake Numbers:About 11% of digital frauds or fraud attempts involved the use of fake numbers associated with e-wallets or banks.

ICICI Lombard Forms 7 New Bancassurance Partnerships with Banks and Non-banking financial companies (NBFCs) 

• ICICI Lombard General Insurance has teamed up with 7 different financial institutions for bancassurance partnerships.
• The move is expected to expand its distribution network and make insurance more accessible to customers across the country.
• The 7 financial institutions are

1. Aye Finance
2. Bandhan Bank
3. Karnataka Bank
4. Muthoot Mini
5. Nivara Home Finance Private Limited
6. NSDL Payment Bank
7. The Andhra Pradesh State Co-operative Bank.

What is meant by 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.
• The regulator had paved the way for corporate agents (banks) to have distribution tie up with a maximum of 9 life insurers, 9 general insurers and 9 health insurers.
• Also, insurance marketing firms (IMF) can now enter into tie up with as many as six life, general and health insurers.

About ICICI Lombard General Insurance :

• Established : 2001
• Headquarters : Mumbai, Maharashtra
• MD & CEO : Sanjeev Mantri

State Bank of India, ICICI Bank, and IDBI Bank Play Crucial Role in Jaiprakash Associates’ Insolvency Resolution with Over ₹51,000 Crore in Claims

• State Bank of India (SBI), ICICI Bank, and IDBI Bank are the primary creditors, holding significant claims in the Jaiprakash Associates (JAL) insolvency case.
• Total admitted claims amount to over ₹51,000 crore, making it one of the largest insolvency cases since the Insolvency and Bankruptcy Code (IBC) was enacted in 2016.

Key Highlights :

• Breakdown of Claims:As of July, financial creditors, including homebuyers, are owed ₹51,510 crore.
• SBI is the largest creditor with claims of approximately ₹15,500 crore, accounting for 30% of the total debt.
• ICICI Bank holds 18% of the debt, and IDBI Bank holds 11%.
• Together, these three banks hold nearly 60% of the debt.
• Voting Power for Resolution:With Life Insurance Corporation of India (LIC) holding an additional 6% of the debt, these creditors collectively control 66% of the votes required to approve a resolution plan.
• Background of Insolvency:JAL was one of 26 defaulters that the Reserve Bank of India (RBI) directed to be taken to the bankruptcy process in 2017.
• ICICI Bank filed an insolvency petition against JAL before the Allahabad Bench of the National Company Law Tribunal (NCLT) in 2018, which was admitted in June, giving lenders hope for recovery.

National Payments Corporation of India Introduces ‘UPI Circle’ for Secure Payments Among Trusted Users

• The National Payments Corporation of India (NPCI) has launched a new feature called ‘UPI Circle-Delegate Payments’ on its Unified Payments Interface (UPI) platform.
• This feature allows primary UPI account holders to share their accounts with secondary users, enabling delegated transactions

Key Highlights :

• Functionality:UPI Circle-Delegate Payments lets primary users delegate transaction rights to secondary users on their UPI app for either partial or full delegation.
• Delegated Payments enable the primary user to set a UPI transaction limit for the secondary user.
• Regulatory Approval:The Reserve Bank of India (RBI) introduced this facility during its August Monetary Policy Committee (MPC) meeting.
• This product is expected to add to the reach and usage of digital payments across the country.
• Delegation Limits:A primary user can delegate access to up to 5 secondary users.
• A secondary user can accept delegation from only one primary user.
• Members shall ensure that the primary authorises the secondary user on either full or partial delegation.
• Members shall ensure limited control is available for the primary to set usage controls over their secondary users.
• Transaction Limits:Full Delegation:Maximum monthly limit of approximately ₹15,000 per delegation.
• Maximum per transaction limit of approximately ₹5,000.
• Partial Delegation : Existing UPI limits shall be applicable in case of partial delegation.
• Cooling Period and Controls:During the first 24 hours (cooling period) after linking primary and secondary users, a daily transaction limit of approximately ₹5,000 is prescribed for both full and partial delegation.
• The primary user has the authority to set usage controls over secondary users.
• Compliance:Members must adhere to RBI guidelines on ‘Harmonisation of Turn Around Time’ and customer compensation for failed transactions using authorized payment systems.

Bank Deposit and Locker Holders to be Allowed to Name Up to 4 Nominees Soon

• The Government introduced the Banking Laws (Amendment) Bill, 2024 which seeks to increase the option for nominees per bank account to four, from existing one, among others.

Amended Laws:

• Reserve Bank of India (RBI) Act, 1934
• Banking Regulation Act, 1949
• State Bank of India (SBI) Act, 1955
• Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970
• Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980

Key Highlights :

• Cash Reserve Maintenance : Under the RBI Act, scheduled banks must maintain a certain level of average daily balance with the RBI as cash reserves.
• This average daily balance is based on the average of the balances held by banks at the closing of business each day of a fortnight.
• A fortnight is defined as the period from Saturday to the second following Friday (including both days).
• The Bill changes the definition of fortnight to the period from 15th and last day of each month, instead of the second and fourth Fridays.
• It also changes this definition under the Banking Regulation Act where non-scheduled banks are required to maintain cash reserves.
• Tenure of Directors in Cooperative Banks : The bill proposes extending the tenure of directors (excluding the chairman and whole-time director) in cooperative banks from 8 years to 10 years, aligning with the Constitution (Ninety-Seventh Amendment) Act, 2011.
• Board Membership Restrictions : The Banking Regulation Act prohibits a director on a bank’s board to serve on the board of another bank.
• This does not apply to directors appointed by RBI.
• The Bill extends this exemption to the director of a central co-operative bank.
• This exemption will apply where he is elected to the board of a state cooperative bank in which he is a member.
• Substantial Interest Definition : Under the Banking Regulation Act, substantial interest in a company refers to holding shares of over 5 lakh rupees or 10% of the paid-up capital of the company, whichever is less.
• This may be held by an individual, his spouse, or minor child, either individually or collectively.
• The Bill amends this to increase the threshold to 2 crore rupees.
• Nominee Appointment : The Banking Regulation Act allows single or joint deposit holders to appoint a nominee for their deposit.
• Such a nominee can also be appointed for items left in custody of a bank or for a locker hired from a bank.
• The nominee can access the deposit, articles, or locker in case of death of the person who nominated him. The Bill allows the appointment of up to four nominees for these purposes.
• Unclaimed Dividends and Investor Education and Protection Fund (IEPF) : The State Bank of India Act, and the Banking Companies (Acquisition and Transfer of Undertakings) Acts of 1970 and 1980 provide for transferring unpaid or unclaimed dividends to an unpaid dividend account.
• If the money in the account remains unpaid or unclaimed for seven years, it is transferred to the Investor Education and Protection Fund (IEPF).
• The Bill widens the ambit of the funds that can be transferred to the IEPF.
• These include: (i) shares for which dividend has not been paid or claimed for seven consecutive years, and (ii) any interest or redemption amount for bonds which is unpaid/ unclaimed for seven years.
• Any person whose shares or unclaimed/ unpaid money is transferred to IEPF can claim the transfer or refund.

CURRENT AFFAIRS: NATIONAL NEWS

India Set to Extend Key Export Promotion Schemes Amid Global Market Challenges

• To support exporters in maintaining their competitiveness in a challenging global market, the Indian government is likely to extend two critical export promotion measures: the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme and the Interest Equalisation Scheme (IES).
• Both schemes have been instrumental in bolstering exports, particularly in the face of global economic uncertainties.

Key Points:

1. RoDTEP Scheme:
   • Current Status: The RoDTEP scheme, which reimburses embedded input duties and taxes paid during the manufacture of exported products, is set to expire on September 30, 2024.
   • Expected Extension: The scheme is likely to be extended for all 10,000-plus product lines currently covered, ensuring continued support for exporters.
   • Decision Pending: A meeting of the Quarterly Monitoring Committee, headed by the Finance Secretary, will soon decide on the extension and duration of the RoDTEP scheme.
   • Budget Considerations: The government has allocated ₹16,075 crore for the scheme in 2024-25. However, depending on export growth, additional funds might be required.
2. RoSCTL Scheme:
   • Textile Focus: The RoSCTL (Rebate of State & Central Taxes and Levies) scheme, which supports the export of made-up articles and garments, is similar to RoDTEP but specific to the textile sector.
   • Funding Availability: Due to flat textile exports this year, there may be an additional ₹800 crore available, which could potentially be redirected to support the RoDTEP scheme.
3. Interest Equalisation Scheme (IES):
   • Current Status: The IES, which subsidizes loan interest rates for exporters, lapsed for non-MSME sectors on June 30, 2024. MSMEs received a two-month extension, which ends this month.
   • Proposed Extension: The Commerce Department is pushing for a five-year extension for all beneficiaries. The final decision will be made by the Expenditure Finance Committee (EFC) and the Union Cabinet.
   • Impact: The extension of IES is crucial as it helps exporters access loans at subsidized rates, thus easing their financial burden and encouraging export growth.

Context:

• Export Performance: India’s goods exports grew by 4.15% year-on-year to $144.12 billion in the April-July 2024-25 period. However, exports in July saw a 1.4% dip to $33.98 billion, influenced by global geopolitical tensions and rising protectionism.

India’s First Ready-to-Drink Fig Juice Exported to Poland, Marking a Global Milestone

• The Agricultural and Processed Food Products Export Development Authority (APEDA) has successfully facilitated the export of India’s first ready-to-drink fig juice, made from GI-tagged Purandar figs, to Poland.
• This milestone follows a previous export to Germany in 2022, showcasing the global appeal of this unique agro-product.

Key Highlights:

1. Unique Characteristics of Purandar Figs:
   • Known for their distinct taste and texture, Purandar figs are rich in pulp, vitamins, and minerals.
   • The figs have a sweet flavour and an attractive violet colour, with their quality attributed to the region’s red-black soil, favourable climatic conditions, and salt-free well irrigation techniques.
2. Global Recognition:
   • The journey of this innovative fig juice began at the APEDA Pavilion during the SIAL 2023 in Greater Noida, New Delhi, where it was introduced to the global market.
   • The product was later showcased at Macfrut 2024 in Rimini, Italy, where it received positive responses from international buyers, including an inquiry from MG Sales SP in Wroclaw, Poland.
3. Milestone Export:
   • The fig juice, produced by Purandar Highlands Farmers Producer Company Ltd., won an award at Macfrut 2024, highlighting its potential in the international market.
   • The shipment, flagged off by APEDA Chairman Abhishek Dev, departed on August 1, 2024, via Hamburg port in Germany, marking a significant achievement in promoting India’s unique agro-products globally.
4. APEDA’s Role:
   • APEDA has played a crucial role in supporting smallholder farmers and promoting the export of GI-tagged Purandar figs, contributing to the development and success of this product on the international stage.

India’s First Digital Court Inaugurated in Kerala to Handle Cheque Bounce Cases

• India’s first fully digital court, named “24*7 ONCOURTS,” dedicated to handling cheque bounce cases, was inaugurated in Kollam, Kerala, by Justice Bhushan Ramkrishna Gavai of the Supreme Court.
• This pioneering initiative marks a significant leap in the digitalization of India’s judiciary, aiming to streamline court processes and reduce case backlogs.

Key Features of 24*7 ONCOURTS:

1. Comprehensive Digital Process:
   • The digital court automates the entire lifecycle of a case—from filing, registration, and admission to appearances, hearings, and the final judgment. This seamless process is expected to significantly enhance judicial efficiency.
   • Focus on Cheque Bounce Cases: Cheque bounce cases, which account for approximately 10% of all cases in the judiciary, will be the primary focus. The automation of these cases is anticipated to reduce pendency and increase productivity.
2. Future Expansion Plans:
   • Depending on the success of this initiative, the ONCOURTS model may be expanded across Kerala, bringing more cases into the digital domain and further alleviating congestion in traditional courts.
3. Technological Integration:
   • Chief Minister Pinarayi Vijayan, who inaugurated the project, described the day as historic for Kerala’s judiciary. The ONCOURTS project, set to begin accepting cases in September 2024, represents a significant move towards embracing technology in the legal system.
   • Although Chief Justice of India DY Chandrachud was unable to attend the event, he was scheduled to launch additional initiatives aimed at boosting judicial efficiency through technology.

PM Modi’s Historic Visit to Ukraine: Aiming for Peaceful Resolution

• In a significant diplomatic move, Prime Minister Narendra Modi is set to visit Kyiv on August 23, marking the first official visit by an Indian Prime Minister to Ukraine since establishing diplomatic ties over 30 years ago.
• This visit comes as India expresses its willingness to contribute to finding a peaceful solution to the ongoing conflict in Ukraine.

Key Details:

1. Visit Timeline:
   • Dates: Modi will travel to Ukraine on August 23, coinciding with Ukraine’s National Flag Day.
   • Preceding Visit: Before arriving in Ukraine, Modi will spend two days in Poland on August 21 and 22.
   • Travel Logistics: The Prime Minister will travel by train from Poland to Kyiv, a journey that will take approximately 10 hours each way.
2. Diplomatic Objectives:
   • Peaceful Resolution: India is advocating for diplomacy and dialogue to address the conflict, as stated by Tanmaya Lal, Secretary (West) in the Ministry of External Affairs (MEA).
   • Engagement with Leaders: Modi’s discussions with Ukrainian President Volodymyr Zelenskyy will focus on bilateral and multilateral cooperation, along with the ongoing conflict.
3. Significance of the Visit:
   • Historic Nature: The visit is being described as “landmark and historic,” highlighting the importance of India-Ukraine relations.
   • Potential Agreements: During the visit, it is expected that several documents will be signed between the two countries, further solidifying their partnership.
4. Background Context:
   • Independent Ties: India maintains independent relationships with both Russia and Ukraine, a point emphasized by the MEA.
   • Previous Engagements: Modi last engaged with Zelenskyy during the G7 summit in Italy in June, where he reaffirmed India’s commitment to supporting a peaceful resolution to the conflict.

Nepal to Export Nearly 1,000 MW of Electricity to India: A New Milestone in Bilateral Cooperation

• Nepal is set to export close to 1,000 MW of electricity to India, marking a new milestone in the energy collaboration between the two nations.
• This was confirmed by India’s External Affairs Minister, Jaishankar, following his meeting with Nepal’s Foreign Minister, Arzu Rana Deuba, in New Delhi.

Key Highlights:

• Comprehensive Discussions: The discussions between the two foreign ministers encompassed various areas of cooperation, including:
  • Energy: Agreement on electricity exports.
  • Trade and Connectivity: Enhancements in bilateral trade and infrastructure connectivity.
  • Infrastructure Development: Joint efforts to improve infrastructure, supporting economic growth.

Diplomatic Engagements:

• Meetings in Kathmandu: Indian Foreign Secretary Misri engaged with several high-level officials in Nepal, including:
  • Nepal’s Foreign Minister Arzu Rana Deuba: Discussed ways to strengthen bilateral cooperation across all sectors.
  • President Ramchandra Paudel and Prime Minister KP Sharma Oli: Focused on mutual interests and future collaborations.

Background:

• 7th India-Nepal Joint Commission Meeting: Earlier this year, Jaishankar visited Kathmandu to co-chair the 7th India-Nepal Joint Commission meeting, where discussions on trade, connectivity, and defence cooperation took place.
• Ongoing Bilateral Cooperation: India and Nepal have a long-standing relationship with cooperation across multiple sectors, including energy, water resources, health, education, and cultural exchanges.
• Earthquake Reconstruction Aid: India pledged USD 1 billion for Nepal’s reconstruction after the 2015 earthquake, including grants and a line of credit, showcasing the depth of bilateral ties.

Impact:

• Strengthening Ties: This energy export deal is expected to further strengthen the economic and diplomatic ties between India and Nepal, paving the way for more collaborative efforts in the future.

CURRENT AFFAIRS : INTERNATIONAL NEWS

UAE Joins BRICS Partners to Launch Centre for Industrial Competences

• The UAE Ministry of Industry and Advanced Technology joined its BRICS counterparts on the launch of a Centre for Industrial Competences in cooperation with the United Nations Industrial Development Organisation (UNIDO) to support the development of Industrial skills and capabilities.
• The declaration was made at the 8th BRICS Industry Ministers Meeting, bringing industry, trade and technology ministries together from the UAE, Russia, Brazil, China, Egypt, Ethiopia, India, Iran, and South Africa.
• The meeting, chaired by Russia, takes place under the theme of “strengthening multilateralism for equitable global development and security”.

Key Highlights :

• Working Groups: The declaration included plans to create working groups focused on sectors such as the chemical industry, metals, SMEs, smart manufacturing, clean technology, and medical equipment.
• Commitment to SDGs: Under the declaration, the members emphasised their commitment to cooperating on industrial policy in support of the United Nations’ Sustainable Development Goals (SDGs), especially SDG 9 on industry, innovation and infrastructure, including the implementation of green technologies.
• PartNIR Innovation Centre: The declaration recognized the role of the PartNIR (Partnership on New Industrial Revolution) Innovation Centre, which focuses on policy coordination, personnel training, and project development.
• It also reaffirms the commitment to supporting the United Nations’ Sustainable Development Goals, particularly SDG 9 on industry, innovation and infrastructure.
• Support for Upcoming Meeting: Delegates expressed support for Brazil, which will host the 9th BRICS Industry Ministers Meeting in 2025.
• BRICS Economic Forecast: Since the UAE joined BRICS in January 2024, projections suggest that BRICS could represent 45% of the global economy by 2040.

Indonesia Celebrates 79th Independence Anniversary with Ceremony in Unfinished Future Capital Nusantara

• Indonesia marked 79 years of independence on August 17, 2024 with a ceremony in the unfinished future capital of Nusantara, which was planned to relieve pressure on Jakarta but whose construction has lagged behind schedule.
• Indonesia’s President Joko Widodo and Cabinet Ministers attended the Independence Day ceremony at the new Presidential Palace, built in the shape of the mythical eagle-winged protector figure Garuda.
• The celebration was initially planned to inaugurate Nusantara as the country’s new capital, but with construction behind schedule it’s not clear when the transfer will take place.

Key Highlights :

• Nusantara’s Construction Timeline: The construction of the new capital began in mid-2022, spread over an area of about 2,600 square km (1,000 square miles) carved out of Borneo’s jungle.
• Located about 800 miles northeast of Jakarta, construction of Nusantara involves five phases, with the project scheduled for completion by 2045.
• Population Relocation: The government plans to relocate around 1.9 million people from Jakarta to Nusantara to ease congestion.
• Environmental Issues in Jakarta: Jakarta faces severe pollution and is the world’s fastest sinking city.
• It is estimated that one-third of Jakarta could be submerged by 2050 due to uncontrolled groundwater extraction and rising sea levels caused by climate change.
• Indonesia’s Economy: With a population of about 275 million, Indonesia is Southeast Asia’s largest economy.
• Leadership: President Joko Widodo, who has led Indonesia for 10 years, is set to leave office in October 2024.

About Indonesia :

• President : Joko Widodo
• Currency : Indonesian rupiah

CURRENT AFFAIRS: BUSINESS NEWS

FPIs Surge in Indian Debt Market, Cross ₹1 Lakh Crore Mark in 2024

• Foreign Portfolio Investors (FPIs) have set a new milestone in the Indian debt market, with net investments exceeding ₹1 lakh crore as of mid-August 2024.
• This significant achievement underscores the growing appeal of India’s debt instruments, especially following the country’s inclusion in JP Morgan’s Emerging Market government bond indices earlier this year.

Key Highlights:

1. Debt Market Inflows:
   • Record Investment: FPIs’ net inflows into the Indian debt market have reached ₹1,00,100 crore by August 16, 2024, a substantial increase from ₹28,181 crore during the same period last year.
   • August 2024 Performance: In August alone, net investments stood at ₹9,112 crore up to August 16, indicating sustained interest.
   • JP Morgan Index Inclusion: The inclusion of Indian government bonds in JP Morgan’s Emerging Market indices in June 2024 has been a major driver of this surge. In July, FPIs invested ₹22,363 crore in Indian government debt, continuing the momentum that began after the inclusion announcement in October 2023.
2. Equity Market Dynamics:
   • Equity Outflows: Contrasting with the debt market, FPIs have been net sellers in Indian equities, with outflows amounting to ₹21,201 crore by mid-August 2024. This selling trend has been ongoing since the Budget announcement in July 2024, with net equity sales nearing ₹50,000 crore.
   • Annual Equity Investments: Despite this recent selling spree, FPIs have still managed a net investment of ₹14,365 crore into equities in 2024. However, this is a sharp decline compared to the ₹1,35,287 crore invested up to August last year.

CSR Spending Falls Short of Mandates: Five-Year High of Unspent Funds in FY23

• In the fiscal year 2022-23 (FY23), listed companies in India have recorded a significant shortfall in their Corporate Social Responsibility (CSR) spending, with a five-year high of ₹1,475 crore remaining unspent.
• This amount represents the difference between the required and actual CSR expenditures.

Key Insights:

1. CSR Spending Overview:

• Total Required vs. Actual Spend: Listed companies were mandated to spend ₹15,787 crore on CSR activities for FY23, based on their net profits, turnover, and net worth. However, they spent only ₹15,602 crore, falling short by ₹185 crore.
• Unspent Amount: The unspent amount of ₹1,475 crore represents the aggregate CSR shortfall by companies that spent less than the mandated sum.

1. Spending Trends:

• Lowest Ratio in Five Years: Companies allocated ₹99 for every ₹100 required for CSR projects, the lowest ratio in the past five years. In FY2020, the ratio was ₹111 for every ₹100 mandated.
• Average Spending per Company: On average, each listed company spent ₹11.29 crore on CSR in FY23, which is a 4% decrease from FY22 and a 9% decrease from FY21.

CURRENT AFFAIRS: SUMMITS AND CONFERENCE

South Korea, Japan, and U.S. Reaffirm Trilateral Cooperation on Camp David Summit Anniversary

• The leaders of South Korea, Japan, and the United States issued a joint statement, commemorating the anniversary of their summit at Camp David.
• The statement, released by South Korea’s presidential office, reaffirmed the countries’ commitment to jointly address regional challenges.

Key Points:

• Summit Anniversary: The statement marks one year since the Camp David summit when the leaders of South Korea, Japan, and the U.S. established principles for trilateral cooperation.
• Ongoing Cooperation: The principles set during the summit continue to guide the three nations in their efforts to deepen military and economic ties, particularly in response to China’s rising influence and security threats from North Korea.
• Future Meeting: South Korean media reports suggest that the leaders plan to meet again this year, although the exact timing is uncertain, especially with Japanese Prime Minister Fumio Kishida’s recent announcement that he will be stepping down.

CURRENT AFFAIRS : ACQUISITIONS & MERGERS

Adani Group Pledges 51% Stake in Navi Mumbai Airport for ₹12,770 Crore Loan

• The Adani Group-controlled Mumbai International Airport Ltd (MIAL) has pledged a 51% stake in the upcoming Navi Mumbai International Airport (NMIAL) to the State Bank of India (SBI).
• This move is linked to a substantial loan facility amounting to Rs 12,770 crore, sanctioned by SBI for the greenfield airport project.

Key Highlights :

• MIAL’s Stake: MIAL holds a 74% stake in NMIAL and is overseeing its development.
• Project Timeline: The Navi Mumbai International Airport is expected to begin operations in the last quarter of FY 2024-25, delayed by three months from its original schedule.
• Financial Closure: The Adani Group announced the financial closure for the NMIAL project in March 2022, with SBI underwriting the entire debt requirement of ₹12,770 crore.
• Previous Financing Arrangement: A previous financing deal with Yes Bank worth ₹8,645 crore was cancelled, leading to the revised arrangement with SBI.
• Projected Capacity: Upon completion, the Navi Mumbai airport is expected to handle 90 million passengers and 2.6 million tonnes of cargo annually by FY32.
• AAHL Operations: Adani Airports Holdings Limited (AAHL) currently operates 7 airports in India, including Mumbai International Airport and others in Jaipur, Guwahati, Thiruvananthapuram, Mangaluru, and Lucknow.

About MIAL :

• Mumbai International Airport Limited (MIAL) is managed by Adani Airport Holding Limited (AAHL), a subsidiary of Adani Enterprises, the flagship company of the globally diversified Adani Group.

CURRENT AFFAIRS : SCIENCE & TECHNOLOGY

Ola Electric Unveils Indigenous ‘Bharat’ Battery Cell

• Ola Electric, the winner of the Centre’s flagship Rs 18,100 crore production-linked incentive (PLI) scheme for advanced chemical cells (ACC), unveiled the ‘Bharat’ battery cell — an indigenous 4680 cell.
• At the Ola Electric Sankalp 2024 event, Aggarwal detailed the company’s plan to revolutionise energy in India.
• The phased approach begins with 5 GwH cell manufacturing in 2024, scaling up to 20 GwH by 2026, and aiming for 100 GwH by 2030.
• He also announced that Ola Electric plans to start integrating the 4680 cell into its products by April 2025.

Key Highlights :

• PLI Scheme Allocation: Ola Electric was awarded 20 GWh of the 50 GWh allocated under the ACC PLI scheme.
• Other recipients include ACC Energy Storage and Reliance New Energy Battery Storage.
• Pilot Production: Ola Electric has completed pilot production of approximately 10,000 cells and informed the Ministry of Heavy Industries (MHI), the nodal ministry for the ACC PLI.
• Energy Density: The ‘Bharat’ cell offers five times more energy density than the 2170 cells currently used in Ola’s scooters.
• Self-Reliance in Battery Technology: The ACC PLI scheme aims to achieve self-reliance in battery technology for India’s electric vehicle industry.

About Ola Electric :

• Founded : 2017
• Headquarters : Bangalore, Karnataka, India
• CEO : Bhavish Aggarwal

Bhavish Aggarwal’s Krutrim Set to Develop and Launch Its First AI Chip by 2026 

• Krutrim, the Artificial Intelligence (AI) startup founded by Bhavish Aggarwal, plans to launch its first AI chip, Bodhi 1, by 2026, followed by a superior Bodhi 2 in 2028.
• Krutrim is developing a family of chips named “Bodhi” for AI, “Sarv” for general computing, and “Ojas” for Edge computing.

Key Highlights :

• Strategic Partnerships: The development of Bodhi-II involves strategic partnerships with global chip-makers Arm and Untether AI.
• Data Centre Expansion: Krutrim aims to scale up its data centre capacity to 1 GW by 2028, from the current 20 MW.
• Ola Coins Loyalty Program: A loyalty program called Ola Coins has been launched, applicable across several Ola services.
• AI Chatbot: Krutrim has also made strides in the consumer market by launching an Android app for its AI chatbot in May 2024.
• The chatbot, which entered public beta in February 2024, is designed to compete with major players like OpenAI’s ChatGPT, Google’s Gemini, and Microsoft’s Copilot.
• It is powered by Krutrim’s multilingual large language models (LLM) and supports over 10 Indian languages, with plans to extend this to all 22 official languages by the end of 2024.
• Ola Cabs Rebranding: Ola Cabs has been rebranded to Ola Consumer to reflect the company’s broader range of consumer services.
• Automated Dark Stores: Ola showcased automated dark stores for rapid deliveries, accessible to all kiranas and brands in the ONDC network.
• Krutrim’s AI Tools Integration:The company also announced that Krutrim, the AI startup launched by Aggarwal, are now live with Ola Electric and Ola Cabs along with Krutrim’s AI customer care tool.
• Krutrim’s Unicorn Status: Krutrim, launched in 2023, became India’s first AI unicorn in 2024 after raising $50 million at a $1 billion valuation.

CURRENT AFFAIRS: SPORTS NEWS

Brooks Koepka Wins LIV Golf Greenbrier Title in Playoff Against Jon Rahm

• Brooks Koepka secured his fifth career LIV Golf title, defeating Jon Rahm in a playoff at the LIV Golf Greenbrier.
• This win, which marks Koepka’s first LIV victory since May, was achieved after a dramatic finish at the Old White course in White Sulphur Springs, West Virginia.

Key Highlights:

• Final Round Performance: Koepka shot a seven-under-par 63 in the final round, while Rahm recorded a 65. Both players finished the 54-hole tournament at 19-under 191.
• Playoff Details: In the playoff, Koepka made par on the first hole, while Rahm made a bogey, giving Koepka the win. Rahm’s tee shot on the par-3 18th landed near the back edge of a bunker, and he struggled with his subsequent shots, including a missed par putt.
• Koepka’s Reflections: Koepka described this victory as his “favourite” due to the competitive nature of the battle with Rahm. Despite Rahm’s recent win at the 2023 Masters, Koepka emphasized that the outcome did not serve as added motivation.
• Previous Victories: Koepka’s prior LIV wins were in Jeddah (2022, 2023), Orlando (2023), and Singapore. His major titles include the 2017 and 2018 US Opens and the 2018, 2019, and 2023 PGA Championships.
• Rahm’s Performance: Rahm, who joined LIV Golf last December, won his first LIV event at LIV Golf UK in July. Despite the loss, he remains second in the season standings behind Chile’s Joaquin Niemann.
• Tournament Context: Rahm began the final round with a two-stroke lead, but Koepka closed the gap with early birdies. Rahm made a late surge with birdies on holes 16 and 17 to force the playoff.
• Team Competition: Koepka’s team, Smash, which included Jason Kokrak, won the team competition with a score of 53-under, defeating Leishman’s Ripper squad by three strokes.

Ilkay Gündoğan Announces Retirement from International Football

• Ilkay Gündoğan, who captained Germany during Euro 2024 on home soil, officially retired from international football at 33.

Background:

• Career Highlights: Gündoğan made his international debut for Germany in October 2011 against Belgium.
• Over his career, he became a key player for the national team, known for his skilful midfield play.
• Missed Tournaments: He was unable to participate in the 2014 World Cup and the 2016 European Championship due to injuries.
• Captaincy: Last October, former national team coach Hansi Flick appointed Gündoğan as the captain of the German team.
• Flick, who is now Gündoğan’s coach at Barcelona, entrusted him with leading the team at Euro 2024.
• Legacy: Gündoğan follows in the footsteps of other recent German retirees like Thomas Müller and Toni Kroos, who both retired after Germany’s quarter-final defeat to Spain in Euro 2024.

CURRENT AFFAIRS : OBITUARIES

Former Council of Scientific and Industrial Research Director General Girish Sahni Passed away

• Former director-general of the Council of Scientific and Industrial Research (CSIR), Girish Sahni, known for developing clot busters for treatment of cardiovascular diseases passed away at the age of 68.

About Girish Sahni :

• Sahni joined the Institute of Microbial Technology (IMTECH), a CSIR laboratory in Chandigarh, in 1991.
• He became its director in 2005, a position he held until he was appointed the CSIR director-general in 2015.
• He specialised in protein engineering, molecular biology, and biotechnology, contributed significantly in the area of protein cardiovascular drugs especially ‘clot busters’ and their mode of action in the human body.
• He developed clot-specific streptokinase, a drug whose licensing rights were sold to Nostrum Pharmaceuticals in New Jersey, the U.S., in 2006 for $5 million.

Daily CA One- Liner: August 21

• To support exporters in maintaining their competitiveness in a challenging global market, the Indian government is likely to extend two critical export promotion measures: the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme and the Interest Equalisation Scheme (IES).
• The Agricultural and Processed Food Products Export Development Authority (APEDA) has successfully facilitated the export of India’s first ready-to-drink fig juice, made from GI-tagged Purandar figs, to Poland.
• India’s first fully digital court, named “24*7 ONCOURTS,” dedicated to handling cheque bounce cases, was inaugurated in Kollam, Kerala, by Justice Bhushan Ramkrishna Gavai of the Supreme Court
• In a significant diplomatic move, Prime Minister Narendra Modi is set to visit Kyiv on August 23, marking the first official visit by an Indian Prime Minister to Ukraine since establishing diplomatic ties over 30 years ago
• Nepal is set to export close to 1,000 MW of electricity to India, marking a new milestone in the energy collaboration between the two nations.
• Foreign Portfolio Investors (FPIs) have set a new milestone in the Indian debt market, with net investments exceeding ₹1 lakh crore as of mid-August 2024
• In the fiscal year 2022-23 (FY23), listed companies in India have recorded a significant shortfall in their Corporate Social Responsibility (CSR) spending, with a five-year high of ₹1,475 crore remaining unspent
• The leaders of South Korea, Japan, and the United States issued a joint statement, commemorating the anniversary of their summit at Camp David.
• Outward remittances under the Reserve Bank of India’s (RBI’s) Liberalised Remittance Scheme (LRS) dropped by 24.39% year-on-year to $6.9 billion in Q1 FY25, compared to $9.1 billion in the same period the previous year.
• The Reserve Bank of India (RBI) study forecasts that private sector capital expenditure (capex) could rise to ₹2.45 trillion in FY25, up from ₹1.59 trillion in FY24.
• Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman chaired a review meeting of Regional Rural Banks (RRBs) in New Delhi.
• Fintech Association of India (FACE) has asked its members to explore joining the Citizen Financial Cyber Fraud Reporting and Management System (CFCFRMS) – part of the National Cybercrime Reporting Portal.
• ICICI Lombard General Insurance has teamed up with 7 different financial institutions for bancassurance partnerships.
• State Bank of India (SBI), ICICI Bank, and IDBI Bank are the primary creditors, holding significant claims in the Jaiprakash Associates (JAL) insolvency case.
• The National Payments Corporation of India (NPCI) has launched a new feature called ‘UPI Circle-Delegate Payments’ on its Unified Payments Interface (UPI) platform.
• The Government introduced the Banking Laws (Amendment) Bill, 2024 which seeks to increase the option for nominees per bank account to four, from existing one, among others.
• The UAE Ministry of Industry and Advanced Technology joined its BRICS counterparts on the launch of a Centre for Industrial Competences in cooperation with the United Nations Industrial Development Organisation (UNIDO) to support the development of Industrial skills and capabilities.
• Indonesia marked 79 years of independence on August 17, 2024 with a ceremony in the unfinished future capital of Nusantara, which was planned to relieve pressure on Jakarta but whose construction has lagged behind schedule.
• The Adani Group-controlled Mumbai International Airport Ltd (MIAL) has pledged a 51% stake in the upcoming Navi Mumbai International Airport (NMIAL) to the State Bank of India (SBI).
• Ola Electric, the winner of the Centre’s flagship Rs 18,100 crore production-linked incentive (PLI) scheme for advanced chemical cells (ACC), unveiled the ‘Bharat’ battery cell — an indigenous 4680 cell.
• Krutrim, the Artificial Intelligence (AI) startup founded by Bhavish Aggarwal, plans to launch its first AI chip, Bodhi 1, by 2026, followed by a superior Bodhi 2 in 2028.
• Former director-general of the Council of Scientific and Industrial Research (CSIR), Girish Sahni, known for developing clot busters for treatment of cardiovascular diseases passed away at the age of 68.
• Brooks Koepka secured his fifth career LIV Golf title, defeating Jon Rahm in a playoff at the LIV Golf Greenbrier
• Ilkay Gündoğan, who captained Germany during Euro 2024 on home soil, officially retired from international football at 33