Daily Current Affairs Capsules 12th January 2024

1. India’s Outward FDI Sharply Declines to $2.25 Billion in December: RBI Data

In the news:

• According to Reserve Bank of India (RBI) data, India’s outward foreign direct investment (FDI) commitments fell sharply to $2.25 billion in December 2023.
• In December 2022, it was recorded over $4.12 billion.
• According to Reserve Bank of India (RBI) data, India’s outward foreign direct investment (FDI) commitments fell sharply to $2.25 billion in December 2023.
• In December 2022, it was recorded over $4.12 billion.
• The equity commitments declined to $646.7 million in December 2023 from $1.38 billion in December 2022.
• Debt commitments decreased to $625.91 million in December 2023 from $1.15 billion in December 2022.
• Guarantees for overseas units declined to $978.19 million in December 2023 from $1.58 billion in December 2022.

FDI:

• It is an investment made by an individual or a company based in one country into business interests located in another country.

Types of FDI:

• Horizontal FDI: The Company makes investments only in the company running their type of business in foreign
• Vertical FDI: The company invests in another company dealing with a complementary type of business
• Conglomerate FDI: The company could invest in any firm, business, or startup, even if it is not from the same industry

Components of FDI:

• Equity capital: The company owns a share to profit from the multiple businesses.
• Reinvested Earnings: The direct investor reinvests profit in the company for further profits.
• Intra-company loans: It include investing by any investor for a brief period for further gains.

Method of FDI:

• Automatic Method
• Government Method

FDI net inflows:

• The value of inward direct investment made by non-resident investors in the reporting economy.

FDI net outflows:

• The value of outward direct investment made by the residents of the reporting economy to external economies.

2. India’s foreign exchange reserves slip from near 22-month highs

In the news:

• As of January 5, 2024, India’s foreign exchange reserves stood at $617.30 billion, easing from near 22-month highs, as per the data from the central bank.
• The Reserve Bank of India (RBI) intervenes in the foreign exchange market to curb excess volatility in the rupee.
• Changes in foreign currency assets include the impact of the RBI’s intervention as well as the appreciation or depreciation of foreign assets held in the reserves.
• Foreign exchange reserves also include India’s reserve tranche position in the International Monetary Fund.
• A reserve tranche position implies a portion of the required quota of currency each member country must provide to the IMF that can be utilized for its own purposes.

Foreign Exchange Reserves

• Assets held on reserve by a central bank in foreign currencies, which can include bonds, treasury bills and other government securities
• Note: Most foreign exchange reserves are held in US dollars.

India’s Forex Reserve include:

• Foreign Currency Assets
• Gold reserves
• Special Drawing Rights
• Reserve position with the International Monetary Fund (IMF)

Objectives (Holding):

• Supporting and maintaining confidence in the policies
• Limits external vulnerability
• Provides the capacity to intervene in support of the national or union currency.

Significance (Rising):

• Managing India’s external and internal financial issues.
• It serves as a cushion in the event of a Balance of Payment (BoP) crisis.
• Rupee Appreciation
• Confidence in Market

3. India’s Index of Industrial Production grows by 2.4 per cent in November 2023

In the news:

• According to data released by the Ministry of Statistics and Programme Implementation, the growth in India’s industrial output slumped to 2.4% in November 2023 from October’s 16-month high of 11.6%.
• Quick Estimates of the Index of Industrial Production (IIP) are released on the 12th of every month with a six-weeks lag.
• Base year: 2011-12
• The Quick Estimates of Index of Industrial Production (IIP) stands at 141 in November 2023.
• The Indices of Industrial Production for the Mining, Manufacturing and Electricity sectors for the month of November 2023 stand at 131.1, 139.2 and 176.3 respectively.
• As per Use-based classification, the indices stand at 143.8 for Primary Goods, 98.0 for Capital Goods, 151.4 for Intermediate Goods and 164.1 for Infrastructure/ Construction Goods.
• The indices for Consumer durables and Consumer non-durables stand at 105.9 and 156.9 respectively.

4. India’s Retail Inflation stands at 5.69% in December 2023

In the news:

• The National Statistical Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI) is releasing All India Consumer Price Index (CPI).
• Base year: 2012
• India’s headline retail inflation rate accelerated to a four-month high of 5.69% in December 2023.
• The Consumer Price Index (CPI) inflation print in November 2023 was 5.55%.
• Headline retail inflation has now spent 51 consecutive months above the Reserve Bank of India’s medium-term target of 4%.

5. RBI imposes Rs 2.49 crore penalty on 3 banks

In the news:

• The Reserve Bank has imposed penalties totaling Rs 2.49 crore on three banks i.e. ESAF Small Finance Bank, Dhanlaxmi Bank, and Punjab and Sind Bank, for contravention of regulatory norms.
• ESAF Small Finance Bank:
  • Amount: Rs 29.55 lakh
  • Reason: For non-compliance with the directions issued by it on ‘Customer Service in Banks’.
• Dhanlaxmi Bank
  • Amount: Rs 1.20 crore
  • Reason: For non-compliance with certain directions on ‘Loans and Advances Statutory and Other Restrictions’, KYC, and certain norms related to the interest rate on deposits
• Punjab and Sind Bank
  • Amount: Rs 1 crore
  • Reason: for non-compliance with certain directions on ‘Loans and Advances Statutory and Other Restrictions

6. SBI launches special fixed deposit (FD) scheme

In the news:

• The State Bank of India (SBI) has launched a special fixed deposit (FD) scheme.
• Aim: To mobilize funds to support environment-friendly initiatives and projects, so that foster the growth of a green finance ecosystem in India
• This FD is aligned with the government of India’s ambitious goal i.e. net carbon zero by 2070.
• Feature:
• Eligible: Resident individuals, Non-individuals, and NRI customers
• Tenors: It offers three distinct tenors: 1111 days, 1777 days, and 2222 days.
• How to invest:
• Currently, it is available through the branch network.
• Soon. it will be made available through other digital channels such as YONO and Internet Banking Services.
• Interest rate: SGRTD will offer 10 basis points (bps) interest rates below the card rate for retail and bulk Deposits for respective tenor.
• Interest rate for retail deposits:
• 1111 Days- 6.65 %
• 1777 Days- 6.65 %
• 2222 Days- 6.40 %
• Interest rate for bulk deposits
• 1111 Days- 6.15 %
• 1777 Days- 6.15 %
• 2222 Days- 5.90 %
• Additional interest rate for senior citizens
• Pre-mature withdrawal: Yes
• Maturity Instructions: As applicable for term deposit/ special term deposit
• Loan facility: Loan/ overdraft facility available against the deposit
• TDS: TDS is applicable as per income tax rules
• Are Green Deposits covered under the DICGC?
• Yes, the deposits raised under the framework are covered by the Deposit Insurance and Credit Guarantee Corporation.

7. UGC’s launched new Directive for Ethical Education in India

In the news

• The University Grants Commission (UGC) of India has introduced Mulya Pravah 2.0, a new Directive for Ethical Education in India.
• These guidelines come in response to a survey that highlighted unethical practices such as favouritism, sexual harassment, and gender discrimination within various educational organizations.
• It is an updated version of the original Mulya Pravah guideline, which the UGC introduced in 2019.
• Objective: To instill human values and professional ethics in higher education institutions across India.
  • Other objectives:
  • Inculcating Human Values and Ethics
  • Promoting Honesty and Integrity
  • Encouraging Critical Thinking
  • Enhancing Transparency and Accountability
  • Rewarding Ethical Behavior
• Challenges in Implementing Mulya Pravah 2.0:
  • Lack of Awareness
  • Resistance to Change
  • Ambiguity in Definitions
  • Enforcement Issues

8. Climate Conference 2024 “Decoding the Green Transition for India” organized by MEFCC

In the news:

• The Climate Conference 2024 was organized by the Ministry of Environment, Forest and Climate Change on January 12, 2024, in Mumbai, Maharashtra.
• Theme: Decoding the Green Transition for India
• Aim: To create new climate services and adaptation technologies. Knowledge Partner Avaana Capital supported the event
• The Conference was organised under the Green Climate Fund Readiness Programme.
• UNDP India was the Delivery Partner.
• Green Climate Fund:
  • It was established in 2010.
  • It was established by 194 countries in the UN Framework Convention on Climate Change.
  • It is designed to function as an operating entity of the Convention’s financial mechanism.
  • Its headquarters in Korea.
  • Its purpose is to change how the world deals with climate change.

9. India’s Most Polluted City in 2023 is Byrnihat

In the news:

• Byrnihat, located in Meghalaya has topped the list of polluted cities in India, as per the report released by the think tank Centre for Research on Energy and Clean Air (CREA).
• Byrnihat recorded the highest annual average PM10 concentration of 301 micrograms per cubic meter in 2023.
• Followed by Begusarai of Bihar (265 µg m-3) and Greater Noida of Uttar Pradesh (228 µg m-3) are in second and third place, respectively.
• Delhi is in eighth place on this list.
• Silchar in Assam recorded the lowest PM10 level at 29 micrograms per cubic metre.
• The data showed that PM10 levels exceeded the NAAQS (60 micrograms per cubic metre) in 78 of the 85 NCAP cities.
• The data showed that PM10 levels exceeded the NAAQS (60 micrograms per cubic metre) in 78 of the 85 NCAP cities.
• National Clean Air Program (NCAP) was launched in January 2019 by the Ministry of Environment, Forest and Climate Change.

10. Karnataka govt launched Yuva Nidhi scheme

In the news:

• The Karnataka government has launched the Yuva Nidhi scheme in Shivamogga town in Karnataka.
• Under this scheme, an unemployment allowance for two years will be given to those who passed a degree/diploma in 2022-2023.
• Around 65,000 candidates had registered for the scheme.
• The allowance will be credited to the bank accounts of the eligible candidates after the inaugural session.
• Unemployed graduates will get ₹ 3,000 per month while diploma holders will receive ₹ 1,500.
• Training will be provided by registering them on the portal.