National News

Important Cabinet Approvals: 20 May 2020

Following are the various approvals related to national level schemes made during the meeting of Union Cabinet, chaired by the Prime Minister Shri Narendra Modi on 20 May 2020.

• Modification in existing Partial Credit Guarantee Scheme (PCGS): approved Sovereign portfolio guarantee of up to 20% of first loss to Public Sector Banks (PSBs) for purchase of Bonds or Commercial Papers (CPs) with a rating of AA and below (including unrated paper with original/ initial maturity of up to one year) issued by NBFCs/ MFCs/Micro Finance Institutions (MFIs).
• Scheme for Formalisation of Micro food processing Enterprises (FME): It is a Centrally Sponsored Scheme for the Unorganized Sector on All India basis with an outlay of Rs.10,000 crore, to be shared by GOI and the States in ratio of 60:40.
• Pradhan MantriVayaVandanaYojana (PMVVY): extended for further period of three years up to 31st March, 2023. The assured rate of return will be 7.40 % per annum for the year 2020-21 per annum and thereafter to be reset every year.
• Pradhan Mantri Matsya Sampada Yojana (PMMSY) : Scheme to bring Blue Revolution through sustainable and responsible development of fisheries sector in India. Total investment – Rs. 20,050 crore, to be implemented during a period of 5 years from FY 2020-21 to FY 2024-25.
• AtmaNirbhar Bharat Package: Allocation of foodgrains from Central Pool to approximately 8 crore migrants / stranded migrants @ 5 kg per person per month (May and June, 2020) for two months free of cost.
• Special Liquidity Scheme for Non-Banking Financial Companies (NBFCs) and Housing Finance Companies (HFCs) to improve liquidity position of the NBFCs/HFCs.
• Emergency Credit Line Guarantee Scheme: Total corpus of Rs. 41,600 crore. It will enable additional funding of up to Rs. three lakh crore to eligible MSMEs and interested MUDRA borrowers. 100% guarantee coverage to be provided by National Credit Guarantee Trustee Company Limited (NCGTC).
• Issuance of the Jammu & Kashmir Reorganisation (Adaptation of State Laws) Second Order, 2020 in relation of Jammu & Kashmir Civil Services (Decentralisation and Recruitment) Act

Govt extends Pradhan Mantri Vaya Vandana Yojana till 31 March 2023; Lowers Interest Rate to 7.4%

• The Union Cabinet has approved the extension of ‘Pradhan Mantri Vaya Vandana Yojana’ (PMVVY), a pension scheme for senior citizens above 60, for a further period of three years up to 31 March 2023.
• Earlier, the last date of PMMVY was March 31, 2020.
• However, the government has fixed the annual rate of return on the scheme at 7.4 percent for financial year 2020-21, and thereafter to be reset every year.
• This interest rate is lower as compared to 8 percent being given for the financial year ending 31 March 2020.
• Pradhan Mantri Vaya Vandana Yojana’ (PMVVY)

Rajiv Gandhi Kisan Nyay Scheme Launched in Chhattisgarh for Farmers Welfare

• The Chhattisgarh government has launched the Rajiv Gandhi Kisan Nyay Yojana, a scheme to ensure “minimum income availability” to farmers of the state through direct bank transfer.
• The scheme was jointly launched by Congress Chief Sonia Gandhi and Chhattisgarh Chief Minister Bhupesh Baghel on 21 May 2020, to mark the death anniversary of former prime minister Rajiv Gandhi.
• Key features of the scheme
  • The aim of the scheme is to help farmers earn more and bring more area in the state under cultivation, which currently stands at 20 percent.
  • Under the Rajiv Gandhi Kisan Nyay Yojana, Rs 10,000 per acre will be deposited in the bank accounts of farmers (based on registered area and area under cultivation, during Kharif crop season 2019), as agriculture assistance grant for sowing crops such as paddy, maize and sugarcane.
  • The state government had allocated Rs 5,756 crore in the budget 2020-21, for the scheme.
  • The amount will be given to the farmers in four instalments and at least 19 lakh farmers will benefit from the scheme.

Didi Vehicle Service Launched in Jhabua district of Madhya Pradesh by Rural Livelihood Mission for safe delivery of rural women

• In the tribal-dominated Jhabua district of Madhya Pradesh, the women of Rural Livelihood Mission have started an initiative called ‘Didi Vehicle Service’ for pregnant rural women for the safe delivery, at a time of COVID-19 outbreak.
• The service has been launched for 29 villages of 10 Gram Panchayats of Petlavad development block of Jhabua.
• The service is completely free and the women will bear the expenses of Didi vehicle service through the interest, they earn on their savings.

Banking & Economy News

ICRA Predicts Indian Economy to likely contract by 5% in FY21

• The Ratings agency ICRA has predicted India’s GDP growth for FY 2020-21 at -5.0%. Earlier it has predicted the same at around -1% to -2 %.
• It means the GDP of India will contract by 5.0% in FY21.

Flipkart partners with Bajaj Allianz to offer digital, hassle-free motor insurance

• India’s homegrown e-commerce marketplace Flipkart and Bajaj Allianz General Insurance Company, India’s leading private general insurer have partnered to offer a digital motor insurance policy to Flipkart customers.
• The interested consumers can avail the motor-insurance policy on the Flipkart app.
• Benefits of the motor insurance include:
• For 4 Wheeler
  1. MOTOR OTS (Motor On the Spot): Motor OTS allows consumers to self-inspect their vehicle in case of an accidental damage.
  2. Zero Depreciation
  3. 4000+ Network Garages
  4. 24×7 Roadside Assistance
• For 2 Wheeler
  1. Instant Support: Round the clock assistance and instant resolution of customer queries through SMS, toll-free number, WhatsApp Service, Missed Call Facility, chat bot BOING
  2. Hassle Free Renewal
  3. Transfer of NO-CLAIM BONUS: NCB – a unique feature wherein consumers get a reward for every claim-free year. Consumers can transfer up to 50% the NCB from their previous policy when they switch insurers

Appointment

World Bank names American Economist Carmen Reinhart as its Chief Economist

• American economist and Harvard University Professor, Carmen M. Reinhart, has been named as the new Vice President and Chief Economist of the World Bank on 20 May 2020.
• Her appointment will be effective from June 15, 2020.
• She replaces Pinelopi Goldberg, who left on March 1 after only 15 months on the job.
• Reinhart also currently serves on advisory boards of the IMF and the New York Federal Reserve.

Dilip Oommen appointed as the new President of Indian Steel Association (ISA)

• Dilip Oommen, has been sworn in as the new President of the Indian Steel Association (ISA) on 19 May 2020 for a period of two years till May 2022.
• He will succeed T V Narendran, who resigned from the position of President on May 1.

Important Days

International Tea Day: 21 May

• The International Tea Day is observed annually on May 21 by United Nations Food and Agriculture Organization (FAO) to raise awareness of the deep cultural and economic significance of tea around the world and promote its importance in fighting hunger and poverty.
• The day was adopted by United Nations on December 21, 2019.

International Day for Biological Diversity: 22 May

• The International Day for Biological Diversity (also known as World Biodiversity Day) is a United Nations–sanctioned international day held on May 22 every year to increase understanding and awareness of biodiversity issues.
• The theme of 2020 World Biodiversity Day is “Our solutions are in nature”.