RBI interest subsidy scheme Subject: Economy Section: Monetary Policy Exporters get subsidy under the ‘Interest Equalisation Scheme for pre and post-shipment Rupee Export Credit’. Under the scheme, large manufacturing and merchant exporters get an interest subsidy of 3% on pre- and post-shipment rupee credit for the outbound shipment of 416 products (tariff lines). […]

    Crude oil and stagflation Subject: Economy Section: Economic Growth Context: Imported inflation, end of easy monetary policy and supply chain disruption has the potential of pushing an economy into stagflation. Concept: Stagflation is said to happen when an economy faces stagnant growth as well as persistently high inflation. In other words, the worst […]

    Crude oil price dynamics and impact  Subject : Economy Section :Inflation Context: Russia is the third largest producer of oil in the world and, more importantly, the world’s largest exporter of oil and gas and the second largest exporter of crude oil after Saudi Arabia. So, disruption of supplies due to the ongoing […]

    Foreign exchange swap Subject: Economy Section: External sector Context: On March 10, the RBI will sell USD 5 billion to banks that have bid at the lowest currency premium. The intent here is that the central bank acquires dollars from the seller, charging the lowest premium possible for the two-year tenor. Accordingly, banks […]

    Rupee-Rouble trade Subject : Economy Section : External sector Concept: Rupee-Rouble trade, as the name suggests, is a settlement arrangement where a Russian bank keeps enough INR deposits to pay off the Indian exporters to Russia in INR. Correspondingly on the flip side, an Indian bank keeps enough Rouble deposits in Russia to […]

    Equalisation levy is my sovereign right says FM  Subject: Economy Section: Public Finance Equalisation Levy Background: Over the last decade, Information Technology has gone through an exponential expansion phase in India and globally. This has led to an increase in the supply and procurement of digital services. Consequently, this has given rise to […]

    FINANCIAL FRAUDS TOPIC: Economy Context- Sharing confidential info one of the major causes behind financial frauds, says RBI. Concept- RBI in a press release while announced a booklet, “BE(A)WARE” on the common modus operandi used by fraudsters and precautions to be taken while carrying out various financial transactions. The booklet aims to enhance […]

    CBIC & CBDT TOPIC: Economy Context- Finance Minister Nirmala Sitharaman on Monday came down heavily on the tax boards for allegedly not responding to grievances of tax assessees, and directed officials to reserve Saturdays to hold meetings with them. Concept- CBIC & CBDT Mandate: CBDT and CBIC have been created under the Central […]