Fair and Average Quality (FAQ) norms Subject: Economy Section: External Sector Context: The Centre on Sunday (May 15) relaxed the Fair and Average Quality (FAQ) norms for wheat in the ongoing rabi marketing season in Punjab, Haryana, and Chandigarh. Reason and Changes: The permissible limit of “shriveled and broken grains” is raised to […]
Capital gains tax Subject: Economy Section: Fiscal Policy Under the Income Tax Act, gains from the sale of capital assets, both movable and immovable, are subject to ‘capital gains tax’. It covers real estate, gold, stocks, mutual funds, and various other financial and non-financial assets. According to the Income Tax Act, if a […]
Double Taxation Avoidance Agreements (DTAA) Subject: Economy Section: Fiscal Policy Holcim CEO Jan Jenisch on Monday said the company’s $10.5-billion sale of its stakes in Ambuja Cements and ACC to the Adani Group will not attract any capital gains tax. Details: As it will sell the shares in the Indian companies to the […]
Grey market and Grey market premium Subject :Economy Section :Money Market LIC shares are now trading at a mild discount in the grey market, signaling negative to at par listing. Concept: A grey market/Parallel Market is a place where trading takes place ‘unofficially’ before the listing of a scrip in the secondary market. […]
Letter of Credit Subject: Economy Section: External Sector New Delhi banned wheat exports on Saturday and only exports backed by letters of credit (LCs), or payment guarantees, issued before May 13 can proceed before the ban takes effect. Letter of credit? A letter of credit (L/C) is a type of “documentary credit” or […]
Impact of hike in repo rate on the fixed income investors Subject: Economy Section: Monetary Policy RBI’s repo rate moves are supposed to send out signals for banks to follow: Bank fixed deposit (FD) rates are usually quite slow to respond to RBI moves, especially when there is an increasing trend. Post office […]
Asset Quality Review Subject: Economy Section: Monetary Policy The RBI governor will meet chiefs of public sector banks (PSBs) on May 17 to review credit flow and assess the outlook on asset quality. The Governor will also review PSBs’ collection efficiencies, consumer grievance redress mechanism, digital banking units, lending to government entities, IT […]
Currency depreciation Subject: Economy Section: Why in the news? The rupee’s depreciation against the US dollar may hold little upside for India as exports seem unlikely to benefit. Causes: Global supply chain constraints -Lockdowns in China aimed at containing the Covid spread have slowed operations at key ports and affected global supply chains. […]
Special Drawing Rights Subject: Economy Section: External Sector Why in the news? The IMF raised the yuan’s weighting to 12.28 per cent from 10.92 in its first regular review of the SDR evaluation since the Chinese currency was included in the basket in 2016, the People’s Bank of China said in a statement […]
Consumer Food Price Index (CFPI) Subject: Economy Section: Inflation Concept: It is a measure of change in retail prices of food products consumed by a defined population group in a given area with reference to a base year. The Central Statistics Office (CSO),Ministry of Statistics and Programme Implementation (MOSPI) started releasing Consumer Food […]