Daily Current Affairs Capsules 1st February 2024

1. RBI imposes major business restrictions on Paytm Payments Bank

In the news:

• The Reserve Bank of India (RBI) has imposed major business restrictions on Paytm Payments Bank, effective from February 29, 2024.
• The regulatory action comes in response to persistent non-compliance and material supervisory concerns identified during a comprehensive external audit of the bank’s systems.
• Key Developments:
• The RBI directive prohibits Paytm Payments Bank from accepting fresh deposits, credit transactions, or top-ups in customer accounts, including prepaid instruments such as wallets and FASTags, after February 29.
• The nodal accounts of Paytm’s parent company, One97 Communications Ltd., and Paytm Payments Bank Ltd., have been terminated by the central bank as part of the regulatory measures.
• The RBI’s decision is rooted in the findings of a Comprehensive System Audit report and subsequent compliance validation report by external auditors, highlighting persistent non-compliances and ongoing supervisory concerns.
• After February 29, 2024, Paytm Payments Bank is restricted from providing any banking services beyond the withdrawal or utilization of balances. This includes fund transfers, BBPOU, and UPI facilities.
• The payments bank is mandated to settle all pipeline transactions and nodal accounts by March 15, with no further transactions permitted beyond this date.

2. Finance Minister Nirmala Sitharaman to present interim budget in Lok Sabha

In the news:

• Finance Minister Nirmala Sitharaman is set to present the Interim Budget 2024-25 at Parliament on Thursday, February 1, a day after the commencement of the Budget Session.
• The interim budget will provide estimates of the government’s expenditure, revenue, fiscal deficit, financial performance, and projections for the upcoming months.
• The full budget is scheduled to be presented after the Lok Sabha elections by the newly elected government.
• In the financial year 2023-24, the education sector received its highest-ever allocation of ₹1.12 lakh crore, compared to the ₹1.04 lakh crore budget allocation in FY 2022-23.
• The FY 2023-24 budget included ₹68,804 crore for school education, ₹44,094.62 crore for higher education and ₹37,453 crore for the Samagra Shiksha Abhiyan.

3. GST collection in January this year rises 10.4% to Rs 1.72 lakh crore

In the news:

• The gross GST revenue collected in January 2024 is one lakh 72 thousand 129 crore rupees, which shows a 10.4% year-on-year growth over the revenue collected in January 2023.
• This is the second-highest monthly collection ever and marks the third month in this financial year with a collection of 1.70 lakh crore rupees or more.
• The Government has settled 43 thousand 552 crore rupees to CGST and 37 thousand 257 crores to SGST from the IGST collection.
• During the April 2023-January 2024 period, cumulative gross GST collection witnessed 11.6% year-on-year growth, reaching 16.69 lakh crores, as against 14.96 lakh crores collected in the same period of the previous year.

4. RBI’s digital payments index jumps to 418.77 in Sept 2023 from 395.57 in March 2023

In the news:

• The Reserve Bank of India’s (RBI) Digital Payments Index, a measure of the extent of digitization of payments across the country, increased to 418.77 in September 2023 from 395.57 in March 2023.
• The RBI-DPI index has increased across all parameters and was driven particularly by growth in payment enablers, payment performance, and consumer centricity across the country over the period.
• The RBI-DPI has been constructed with March 2018 as the base period, that is, the DPI score for March 2018 is set at 100.
• In September 2019, the index stood at 173.49, which rose to 217.74 in September 2020, and to 304.06 in September 2021.
• The RBI-DPI comprises five broad parameters that measure the penetration of digital payments in the country over different time periods.
• These parameters include Payment Enablers (weight 25 per cent), Payment Infrastructure – Demand-side factors (10 per cent), Payment Infrastructure – Supply-side factors (15 per cent), Payment Performance (45 per cent), and Consumer Centricity (5 per cent).

5. Ugro Capital raises Rs 250 crore in debt from Asian Development Bank

In the news:

• MSME-focused non-banking lender Ugro Capital raised Rs 250 crore in debt from the Asian Development Bank (ADB).
• The funding from the developmental lender through subscribing to its non-convertible debentures will be used for on-lending.
• The company had raised a similar amount of debt in December 2023 through a similar debt sale from the Dutch entrepreneurial development bank FMO.
• Over the last five years, it has raised a total of Rs 9,137.8 crore in equity and debt from diverse institutional sources.
• Ugro founder and managing director: Shachindra Nath

6. Six Indian markets listed by US in the Notorious Markets List

In the news:

• Three Indian markets in three cities, including one in New Delhi, and three online markets have figured in the annual notorious market list of the US Trade Representatives released, in which China continues on the number one spot.
• The three Indian markets are: Heera Panna in Mumbai, Tank Road in Karol Bagh in New Delhi and Sadar Patrappa Road Market in Bengaluru.
• The 2023 Notorious Markets List identifies 39 online markets and 33 physical markets that are reported to engage in or facilitate substantial trademark counterfeiting or copyright piracy.
• This includes continuing to identify the China-based e-commerce and social commerce markets Taobao, WeChat, DHGate, and Pinduoduo, as well as the cloud storage service Baidu Wangpan.
• USTR first identified notorious markets in the Special 301 Report in 2006.
• Since February 2011, USTR has published annually the Notorious Markets List separately from the Special 301 Report, to increase public awareness and help market operators and governments prioritize intellectual property enforcement efforts that protect US workers and businesses.

7. Scottish 2-Year-Old Sets Record: Youngest To Reach Everest Base

In the news:

• Two-year-old Carter Dallas from Scotland etched his name into the annals of mountaineering history by becoming the youngest person to reach the Mount Everest base camp.
• He was accompanied by his parents, Ross and Jade.
• Carter Dallas climbed to the south side of Nepal, at an altitude of 17,598 feet above the sea level, on his father Ross’ back.

8. Andhra tops in creating ABHA ids for its population, Tamil Nadu at bottom

In the news:

• More than 529 million uniq­ue health IDs or Ayushman Bharat Health Account numbers created, top of the list is Andhra Pradesh with 78 per cent of its population registered.
• At the bottom of the list is Tamil Nadu which has covered only 12.2 per cent of its population.
• The data from the Ayushman Bharat Digital Mission dashboard shows that Andhra Pradesh is followed by Himachal Pradesh (74.7 per cent) and Chhattisgarh (66.7 percent) coverage respectively.
• Electronics, engineering goods among six focus sectors for $1 trillion exports target
• India has identified 6 key sectors – electronics, engineering goods, textiles, marine & agriculture, toys, and pharmaceuticals.
• These sectors could help the country achieve almost 70% of its $1 trillion goods export target by fiscal year 2030.
• These sectors have the potential to reach $670 billion in exports by FY2030, compared to India’s total goods exports of $451 billion in FY2023.
• Engineering Goods: Expected to grow from $107 billion in FY2023 to $300 billion in exports by FY2030
• Pharmaceuticals: Pharma exports focused on biosimilars and innovation drugs could rise from $25 billion presently to $57 billion by FY2030.
• Electronics: Exports estimated to reach $100 billion by FY2030, driven by categories like mobile phones, laptops, wearables and electronic accessories.
• Textiles: Total textile exports, including readymade garments and technical/man-made fiber textiles, expected to touch $97.7 billion by FY2030.
• Marine & Agriculture: Marine and agri product exports estimated to reach $118 billion by FY2030.
• Toys: Niche sector but seen remarkable growth, with focus on promoting toy clusters for exports.

9. Government appoints Members of the Sixteenth Finance Commission

In the news:

• The Sixteenth Finance Commission was constituted on 31st December 2023 with Arvind Panagariya, former Vice-Chairman, NITI Aayog as its Chairman.
• Now the following members are appointed to the Commission with the approval of the President of India.
• Ajay Narayan Jha, former member, 15th Finance Commission and former Secretary, Expenditure: Full time Member
• Annie George Mathew, former Special Secretary, Expenditure: Full time Member
• Dr. Niranjan Rajadhyaksha, Executive Director, Artha Global: Full time Member
• Dr. Soumya Kanti Ghosh, Group Chief Economic Advisor, State Bank of India: Part time Member
• The Sixteenth Finance Commission has been requested to make its recommendations available by October, 31, 2025, covering an award period of 5 years commencing 1st April, 2026.
• The Finance Commission in India is a constitutional body established under Article 280 of the Indian Constitution.
• Its primary function is to recommend the distribution of financial resources between the central government and the state governments.
• The Fifteenth Finance Commission was constituted on 27th November, 2017.
• It made recommendations covering six years commencing on 1st April 2020 through its Interim and Final Reports.
• The recommendations of the Fifteenth Finance Commission are valid up to the financial year 2025-26.

10. Government Cuts Import Duty on Phone Components Cut to 10% from 15%

In the news:

• The Centre has announced a significant reduction in import duties on mobile phone components.
• The import duty on parts used for mobile phone manufacturing has been slashed to 10% from the earlier 15%.
• This decision aligns with India’s broader objectives to enhance its role in global supply chains and increase exports.
• Despite the growth, a substantial portion of mobile phone components is still imported.
• High import duties on these components have previously been a challenge for manufacturers, impacting the cost-effectiveness and competitiveness of locally produced mobile phones.
• The recent government notification outlines the reduction in import duties for various mobile phone components.
• These include battery covers, main lens, back cover, antennae, SIM sockets, and other mechanical items made of plastic and metal.