Current Affairs 10 September 2020 – IAS Current Affairs

Current Affairs 10 September 2020 focuses on Prelims-Mains perspective. Major events are :

1. RBI’s Revised Priority Sector Lending And Hurdles
2. EASE 2.0 Index Results
3. Lok Sabha Deputy Speaker post
4. Overall FDI rises in FY2020
5. Aatmanirbhar Bharat ARISE-ANIC Initiative
6. Pradhan Mantri Matsya Sampada Yojana

RBI’s Revised Priority Sector Lending And Hurdles

Why in News ?

The Reserve Bank of India released revised priority sector lending (PSL) guidelines to augment funding for COVID-19 impacted companies.

Revised Priority Sector Lending Guidelines

• To align them with emerging national priorities and bring sharper focus on inclusive development, funding for COVID-19 impacted companies.
• Who will be targeted ?
  • Small and marginal farmers and weaker sections
  • Boost credit to renewable energy
  • Health infrastructure
• Fresh categories eligible for finance under the priority sector
  • Bank finance for start-ups
  • Loans to farmers for installation of solar power plants for solarisation of grid connected agriculture pumps
  • Loans for setting up Compressed Bio Gas (CBG) plants.
• Higher weightage to incremental priority sector credit in identified districts where priority sector credit flow is comparatively low.
• Raised the start-up funding limit to Rs. 50 crore.
• Loan limits doubled for renewable energy and health infrastructure.

What is priority sector lending ?

Providing a specified share of the bank lending to few specific sectors identified which need attention and support. This will relaxes the lending norms for poor and small businesses. 

All scheduled commercial banks and foreign banks are mandated to set aside 40% of their Adjusted Net Bank Credit (ANDC) for lending to these sectors.

Priority Sector includes the following categories :

• Agriculture
• Micro, Small and Medium Enterprises
• Export Credit
• Education
• Housing
• Social Infrastructure
• Renewable Energy
• Others

Hurdles in PSL

• Some of the States are getting much higher share, as high as 10 per cent of total agricultural credit compared to other States getting as low as 0.5 per cent.
• The 8 per cent sub-target for small and marginal farmers too has not been well covered.

Source : Business Lines

Topic

Prelims : Priority Sector Lending

GS III : Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment

EASE 2.0 Index Results

Why in News ?

Union Minister of Finance & Corporate Affairs inaugurated Doorstep Banking Services by PSBs and participated in the awards ceremony to felicitate best performing banks on EASE 2.0 Index Result. 

EASE 2.0 Index Result

• It was launched in January 2018 by the government and PSBs.
• Aimed at institutionalising clean and smart banking.
• It was continued in EASE 2.0 built on the foundation laid in EASE 1.0 and furthered the progress on reforms.
• Index performance measured based on 120+ objective metrics.
• EASE 2.0 has Six themes
  • Responsible Banking
  • Customer Responsiveness
  • Credit off-take
  • Udyam iMitra of MSME’S
  • Deepening FI and Digitalisatoin
  • Governance and HR
• The new EASE 2.0 aimed at making the reforms journey irreversible, strengthening processes and systems, and driving outcomes.
• Performance 
  • Overall score of PSBs increased by 37% between March-2019 and March-2020.
  • The average EASE index score improving from 49.2 to 67.4 out of 100.
  • Where the Banks Stands ?
    • Top Performing Banks are Bank of Baroda, State Bank of India, and erstwhile Oriental Bank of Commerce. 
    • Top Improvers are Bank of Maharashtra, Central Bank of India & erstwhile Corporation Bank.
    • Outstanding performance in select themes : Punjab National Bank, Union Bank of India, and Canara Bank.
  • Access to Services
    • The availability of services has nearly doubled over the last 24 months.
    • Access to 35+ services such as IMPS, NEFT, RTGS. 
    • 23 services such as chequebook issuance, cheque status, issuance of form 16A.
  • Digital Transformation
    • 140% increase in financial transactions through mobile and internet banking
    • 50% of financial transactions through digital channels with 4 crore customers
  • Banking Support
    • Call centers now offer services in 13 regional languages
    • Complaint redressal average turnaround time reduced from approximately 9 days to 5 days
  • Loan Processing
    • Sourcing of retail and MSME loans through the dedicated sales force and marketing tie-ups has increased nearly five times from 1.5 lakhs to 8.3 lakh loans
    • Turnaround time for retail loans reduced by 67% from the average of nearly 30 daysto nearly 10 days
• Impact through out the Economy
  • Gross NPAs reduced from ₹8.96 lakh crore in March-2018 to ₹6.78 lakh crore in March-2020.
  • Sharp decline in fraud occurrence from 0.65% of advances during FY10-FY14 to 0.06% in FY19-20
  • Asset quality improved with the net NPA ratio reducing from 7.97% in March 2018 to 3.75% in March 2020

PSB’S In Indian ECONOMY

PSB play a vital role in Indian Economy.

• There are 12 PSB’s in India
  • Punjab National Bank, Bank of Baroda, Bank of India, Central Bank of India, Canara Bank, Union Bank of India, Indian Overseas Bank, Punjab and Sind Bank, Indian Bank, UCO Bank and Bank of Maharashtra, State Bank Of India
• PSBs which account for nearly 70 percent of banking activity in the country.

Source : PIB

Topic

Prelims : About EASE 2.0 Index Result

GS II : Indian Economy and issues relating to planning, mobilisation of resources, growth, development and employment

Lok Sabha Deputy Speaker post

Why in News ?

Lok Sabha Deputy Speaker post vacant for the last 15 months. Instead, a panel of MPs has been assisting the Speaker. 

Lok Sabha Deputy Speaker post

• Deputy Speaker is also elected by the Lok Sabha itself from amongst its members.
• The seat of the Deputy Speaker should be filled either by election or consensus after a new Lok Sabha is constituted.
• By convention the post of the Deputy Speaker is offered to the opposition party.
• Deputy Speaker is not subordinate to the Speaker but directly responsible to the House.
• Article 93 of the Constitution provides for election of both the Speaker and the Deputy Speaker of the Lok Sabha.
• The election of a Deputy Speaker shall be held on such date as the Speaker may fix based on the Rules of Procedure and Conduct of Business in Lok Sabha.
• How a Deputy Speaker seat can be Vacant ?
  • Deputy Speaker Resigns or
  • Ceases to be a member of LS.
  • Removed by the LS
• Duties of the Position
  • Act on Speaker duty when the Speaker’s seat vacant. 
  • Assumes all the powers of the Speaker.
• Special Privilege : If he is appointed as a member of a parliamentary committee he automatically becomes its chairman.
• He can only exercise a casting vote in the case of a tie while presiding over the house.
• He will be like any other ordinary member when Speaker presides the house. 
• Position of Speaker and Deputy Speaker originated in India in 1921 under the provisions of the Government of India Act of 1919 (Montague–Chelmsford Reforms) which they called as President and Deputy President. 

Source : The Hindu

Topic

Prelims : About the post

GS II : Appointment to various Constitutional posts, powers, functions and responsibilities of various Constitutional Bodies

Overall FDI rises in FY2020

Why in News ?

Overall FDI rises in FY2020 by 10 per cent. The value $42.69 billion in the year ended March 31, 2020 from $38.74 billion in the previous year.

Overall FDI

• FDI into India rose 10 per cent to $42.69 billion in the year ended March 31, 2020
• $38.74 billion in the previous year despite the global slowdown
• Cayman Islands showing the biggest jump in bringing cash in to India a 302% hike.
• Singapore, Mauritius, Netherlands, US and Japan  are the major contributors to Indian FDI.
  • Singapore and Mauritius remained the major source countries, accounting for about 50 per cent of total FDI flows.
  • Singapore topped with FDI of $ 12.61 billion.
  • FDI from the US was $ 3.40 billion.
• Implication of Hike
  • Slowdown in the global economy and growing global investment concerns due to disruptions in supply chains, India was able to sustain the pace of FDI in 2019-20
  • Also India was the 9th largest recipient country globally in 2019.
• Which Sector getting Highest FDI ?
  • FDI equity flows went to the services sector, including communication services, retail and wholesale trade, financial services, computer and business services and the manufacturing sector.
  • The manufacturing sector got $ 8.15 billion, communication services $ 6.83 billion and retail trade $ 4.91 billion.

Source : Indian Express

Topic

GS III : Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth

Aatmanirbhar Bharat ARISE-ANIC Initiative

Why in News ?

Atal Innovation Mission (AIM), NITI Aayog, today launched one of its most awaited programmes,the Aatmanirbhar Bharat ARISE-ANIC Initiative, to spur applied research and innovation in Indian MSMEs and startups.

About Aatmanirbhar Bharat ARISE-ANIC Initiative

• Aatmanirbhar Bharat ARISE-Atal New India Challenges (ANIC) launched by Atal Innovation Mission to spur applied research and innovation in Indian MSMEs and startups.
• The programme will be driven by Indian Space Research Organization (ISRO), four ministries
  • Ministry of Defence
  • Ministry of Food Processing Industries
  • Ministry of Health and Family Welfare
  • Ministry of Housing and Urban Affairs and associated industries to facilitate innovative solutions to sectoral problems.
• How it Works ?
  • Will support deserving applied research based innovations by providing funding support of up to Rs 50 lakh.
  • Speedy development of the proposed technology solution and/or product.
• It is a pioneering initiative to stimulate Make in India innovations in the associated MSME startups’ sector and a unique opportunity to make advanced research and development ideas market viable, and field deployable MSME products that can be procured by the government.

Source : PIB

Topic

Prelims : Aatmanirbhar Bharat ARISE-ANIC Initiative

GS III : Achievements of Indians in science & technology; indigenization of technology and developing new technology

Pradhan Mantri Matsya Sampada Yojana

Why in News ?

Prime Minister Shri Narendra Modi digitally launch the Pradhan Mantri Matsya Sampada Yojana (PMMSY)

About Pradhan Mantri Matsya Sampada Yojana (PMMSY)

• Pradhan Mantri Matsya Sampada Yojana (PMMSY) is a flagship scheme for focused and sustainable development of fisheries sector in the country.
• Aim of the Scheme
  • PMMSY aims at enhancing fish production by an additional 70 lakh tonne by 2024-25.
  • Increasing fisheries export earnings to Rs.1,00,000 crore by 2024-25.
  • Doubling of incomes of fishers and fish farmers.
  • To curb post-harvest losses from 20-25% to about 10%.
  • Generation of additional 55 lakhs direct and indirect gainful employment opportunities in fisheries sector and allied activities.
• Funding
  • It aims with an estimated investment of Rs. 20,050 crores for its implementation during a period of 5 years from FY 2020-21 to FY 2024-25 in all States/Union Territories, as a part of AatmaNirbhar Bharat Package.
  • Out of this, an investment of about Rs 12340 crores is proposed for beneficiary oriented activities in Marine, Inland fisheries and Aquaculture.
  • About Rs 7710 crores investment for Fisheries Infrastructure.

How can it be done ?

• It can be done by addressing the issues related to
  • Fish production and productivity,
  • Quality, technology
  • Post-harvest infrastructure and management
  • Modernisation and strengthening of value chain
  • Establishing a robust fisheries management framework and fishers’ welfare.

The investment of Rs. 20,050 crores under PMMSY is the highest ever in the fisheries sector.

Inaugurations related to Fisheries sector

e-Gopala App

• Breed improvement marketplace and information portal for direct use of farmers.
• The e-Gopala App will provide solutions to farmers on
  • Buying and selling of disease free germ plasm in all forms.
  • Availability of quality breeding services.
  • Guiding farmers for animal nutrition, treatment of animals using appropriate ayurvedic medicine/ethno veterinary medicine.
  • Inform farmers about various government schemes and campaigns in the area.

Fish Brood Bank and of Aquatic Disease Referral Laboratory

• Assistance has been provided under PMMSY.
• These facilities will help in enhancing production and productivity of fish by ensuring timely availability of quality and affordable fish seed for the fish farmers
• Address the need for disease diagnosis as well as water and soil testing facilities.

Inaugurations related Animal Husbandry sector

Semen Station

• Established under Rashtriya Gokul Mission in Purnea, Bihar with an investment of Rs 84.27 crores on 75 acres of land made available by the State Government of Bihar.
• One of the largest semen stations in the government sector with production capacity of 50 lakh semen doses per annum.
• Also give new dimension to development and conservation of indigenous breeds of Bihar and meet demand of semen doses of eastern and north eastern States.

In vitro fertilization (IVF) Laboratories

• IVF lab established at Animal Sciences University, Patna under Rashtriya Gokul Mission.
• Various IVF laboratories are being set up across the country through a 100% grant in aid.
• Crucial for propagating elite animals of indigenous breeds and thereby enhancing milk production and productivity manifold.

Sex sorted semen

• Artificial insemination under Rashtriya Gokul Mission.
• Through use of sex sorted semen in AI, only female calves can be produced with an accuracy of 90%.
• This will help double the growth rate of milk production in the country.

IVF technology

• Also launch a demonstration of IVF technology at farmer’s doorstep.
• This will propagate the technology for multiplication of high yielding animals at a faster rate as through use of technology
• They can give birth to 20 calves in a year.

Source : PIB

Topic

Prelims : Inaugurations related to Fisheries sector, Inaugurations related Animal Husbandry sector, About PMMSY

GS III : Food processing and related industries in India- scope and significance, location, upstream and downstream requirements, supply chain management

Current Affairs 10 September 2020 : Our major Sources for the Current Affairs are The Hindu, Indian Express, PIB. For more queries and mentor-ship please contact us.