ECONOMY MCQ PDF Booklet including all relevant current issues will be released on 11th March 2023.
EPFO EPF and EPS.pdf
232.2 KB
Employee Provident Fund Organization (EPFO)
Employee Provident Fund Scheme (EPF)
Employee Pension Scheme (EPS)
And Recent Supreme Court Judgement
Employee Provident Fund Scheme (EPF)
Employee Pension Scheme (EPS)
And Recent Supreme Court Judgement
Just for your information:
I have joined Unacademy Offline Centre at Delhi/ORN where I will be taking classes for Economy for UPSC 2024.
I have joined Unacademy Offline Centre at Delhi/ORN where I will be taking classes for Economy for UPSC 2024.
The above is news from today's Indian Express along with my notes.
HDFC Bank and UCO Bank are basically 'Correspondent Banks' and they have opened account of foreign banks (like Gazprom, Sberbank, VTB Bank). These accounts with (HDFC, UCO) will be treated as 'Vostro' by HDFC and UCO and will be treated as 'Nostro' by Gazprom, Sberbank and VTB Bank.
If there is a surplus balance in these accounts, then it can be invested in Indian Govt. securities also.
HDFC Bank and UCO Bank are basically 'Correspondent Banks' and they have opened account of foreign banks (like Gazprom, Sberbank, VTB Bank). These accounts with (HDFC, UCO) will be treated as 'Vostro' by HDFC and UCO and will be treated as 'Nostro' by Gazprom, Sberbank and VTB Bank.
If there is a surplus balance in these accounts, then it can be invested in Indian Govt. securities also.
The above is news from today's Indian Express along with my note.
Startups operating in India have their parent (holding) company are based/registered in US and through this holding company startups have raised funds abroad/US in dollars and they had parked funds in US in SVB bank. Now as SVB bank has collapsed, so these holding companies can open account in the Indian Banks operating in GIFT-SEZ (IFSC) and can transfer the funds from SVB Bank to Accounts in IFSC and these deposits will be in dollars. [Indian companies/individuals cannot keep dollars in their deposits]
The Indian Banks which will be holding these deposits can invest these (dollar) funds in the External Commercial Borrowing (ECB). Let me explain.
When Indian companies borrow from abroad it is treated as ECB. But IFSC is treated as a foreign territory. So, now if Indian companies are borrowing from the banks having accounts in IFSC (holding startup deposits in dollars) then it will be treated as ECB.
The banks holding the deposits (dollars) in IFSC an also lend in forex market and oil companies for importing oil.
Startups operating in India have their parent (holding) company are based/registered in US and through this holding company startups have raised funds abroad/US in dollars and they had parked funds in US in SVB bank. Now as SVB bank has collapsed, so these holding companies can open account in the Indian Banks operating in GIFT-SEZ (IFSC) and can transfer the funds from SVB Bank to Accounts in IFSC and these deposits will be in dollars. [Indian companies/individuals cannot keep dollars in their deposits]
The Indian Banks which will be holding these deposits can invest these (dollar) funds in the External Commercial Borrowing (ECB). Let me explain.
When Indian companies borrow from abroad it is treated as ECB. But IFSC is treated as a foreign territory. So, now if Indian companies are borrowing from the banks having accounts in IFSC (holding startup deposits in dollars) then it will be treated as ECB.
The banks holding the deposits (dollars) in IFSC an also lend in forex market and oil companies for importing oil.
The above article has explained the Silicon Valley Bank (SVB) crises very well. I would just like to add on the concept part.
Suppose the market interest rate is around 6% and corporates issued bonds (at a coupon/interest rate of 6% and face value Rs. 100) to raise funds and these bonds were purchased by banks (so basically banks are investing the depositors money into bonds).
Now if Central Bank increases the interest/repo rate (to control inflation) then the interest rate in the market will go up and the new bonds will be issued at a higher interest/coupon rate lets say 8% [In a very short span in the last few months interest rates has increased quite a lot]. So now, no investor will purchase the old bonds (in the secondary market) as it is offering a lower interest rate of 6% as compared to the new bonds offering 8%. But there can be a case where investors will be willing to purchase old bonds, if it is offered at a lesser price (than Rs. 100). So basically, when interest rate in the market goes up, the price of the previously issued bonds goes down and this leads to a decline in the capital base of the investors (SVB Bank) who had purchased these bonds.
Suppose the market interest rate is around 6% and corporates issued bonds (at a coupon/interest rate of 6% and face value Rs. 100) to raise funds and these bonds were purchased by banks (so basically banks are investing the depositors money into bonds).
Now if Central Bank increases the interest/repo rate (to control inflation) then the interest rate in the market will go up and the new bonds will be issued at a higher interest/coupon rate lets say 8% [In a very short span in the last few months interest rates has increased quite a lot]. So now, no investor will purchase the old bonds (in the secondary market) as it is offering a lower interest rate of 6% as compared to the new bonds offering 8%. But there can be a case where investors will be willing to purchase old bonds, if it is offered at a lesser price (than Rs. 100). So basically, when interest rate in the market goes up, the price of the previously issued bonds goes down and this leads to a decline in the capital base of the investors (SVB Bank) who had purchased these bonds.
This is the FDI inflow in India in the last few years as reported by RBI. It is reported everywhere that India received maximum FDI of $85 billion in 2021-22 which contradicts the above figure of $58.5 billion.
Clarification: Both figures are correct. The graph represents only the 'inflow' which came from abroad. And $85 billion includes the reinvested profit also which means if a foreign company in India earns profit and reinvests that profit in India then it is also included in 'gross FDI'.
Clarification: Both figures are correct. The graph represents only the 'inflow' which came from abroad. And $85 billion includes the reinvested profit also which means if a foreign company in India earns profit and reinvests that profit in India then it is also included in 'gross FDI'.
Source: The Hindu
A good article on Mega Textile Parks under PM MITRA Scheme.
'Plug-and-play' in the article means, Govt. will provide Land, all the clearances, Infrastructure support like connectivity to rail, road, water, electricity. Private players just need to come and set up manufacturing/value addition facilities/plants in the textile park.
A good article on Mega Textile Parks under PM MITRA Scheme.
'Plug-and-play' in the article means, Govt. will provide Land, all the clearances, Infrastructure support like connectivity to rail, road, water, electricity. Private players just need to come and set up manufacturing/value addition facilities/plants in the textile park.
Reduce civil services recruitment cycle, assess reason for candidates’ low turnout: Par Panel to UPSC - The Hindu
https://www.thehindu.com/news/national/reduce-civil-services-recruitment-cycle-assess-reason-for-candidates-low-turnout-par-panel-to-upsc/article66663970.ece
https://www.thehindu.com/news/national/reduce-civil-services-recruitment-cycle-assess-reason-for-candidates-low-turnout-par-panel-to-upsc/article66663970.ece
The Hindu
Reduce civil services recruitment cycle, assess reason for candidates’ low turnout: Par Panel to UPSC
A Parliamentary Committee has asked the UPSC to reduce the civil services examination’s selection cycle.
MGNREGA wages in each State is decided by:
Final Results
45%
(a) The Central Government
55%
(b) respective State Governments