Financial Awareness-March(11-20) 2017

  1. Public sector banks rush to get cyber insurance policies (Source: ET)
  • Public sector banks are pulling up their socks in cyber insurance. Many state-owned commercial banks are rushing to buy insurance for threats such as hacking, including data loss and associated liabilities.
  • This comes in the wake of the Reserve Bank of India tightening reporting for banks, which for long ignored cyber threats, as well as a greater realisation among banks about the potential dangers of living in a digital world without cover. Banks are seeking more cover for first-party costs related to forensics and cyber experts in case of a claim. This will pay for costs of post-breach investigations as well. Insurers said that in many cases, the cost of external experts was higher than the financial loss caused by a cyber breach. The RBI has issued guidelines to banks to ensure cyber security for addressing risks emerging from new technology.

Continue reading “Financial Awareness-March(11-20) 2017”

Advertisements

NITI AAYOG

The planning commission which has a legacy of 65 years has replaced by NITI Aayog. The utility and significance of the Planning Commission had been questioned for long. The replacement seems to be more relevant and responsive to the present economic needs and scenario in the country.

EVOLUTION OF NITI AAYOG

The NITI Aayog was formed on January 1, 2015. In Sanskrit, the word “NITI” means morality, behavior, guidance, etc

Continue reading “NITI AAYOG”

Universal Basic Income

What is a Universal Basic Income?
• A universal basic income (UBI) is an unconditional and universal right. It requires that every person should have a right to a basic income to cover their needs, just by virtue of being citizens.
•   The Economic Survey (ES) 2016-17 says the time has come to think of UBI for a number of following reasons
•    Social Justice – An UBI promotes many of the basic values of a society which respects all individuals as free and equal.
•   Poverty Reduction – Conditional in the presence of a well-functioning financial system, a Universal Basic Income may simply be the fastest way of reducing poverty.

Agency – The poor in India have been treated as objects of government policy. An unconditional cash transfer treats them as agents, not subjects.
•  By taking the individual and not the household as the unit of the beneficiary, UBI can also enhance agency, especially of women within households.

•  Administrative Efficiency –  It is a way of ensuring that state welfare transfers are more efficient so that the state can concentrate on other public goods. Continue reading “Universal Basic Income”

Real Estate Act, 2016

Why in news?

  • Central government has cautioned the States of a vacuum arising if necessary institutional mechanisms, as required by the Real Estate Act were not put in place before April 30, 2017.

What is Real Estate Act, 2016?

  • The Act which is envisaged to regulate both commercial and residential real estate projects, seeks to set up a state level regulatory authority called Real Estate Regulatory Authority (RERAs) for regulation and promotion of the real estate sector.
  • The Act makes it mandatory for uploading the details of a Real Estate project on the website of the RERAs. Real estate agents also need to register with the RERAs.
  • The Act also makes it mandatory for the builders to put 70% of the amount collected from buyers in a separate bank account. This must only be used for construction of the project. However, the state government can alter this amount to less than 70%.
  • The Act also seeks to establish fast track dispute resolution mechanisms for settlement of disputes through adjudicating officers and Appellate Tribunal.

Continue reading “Real Estate Act, 2016”

Financial Awareness-March(1-10) 2017

  1. Bank loan market could revive soon as bonds become costly (Source: BS)
  • Bank loans are becoming attractive for companies that had shifted to the bond market. Banks recently lowered their interest rates and are expected to hold on to current levels for some time, considering not all the monetary easing has been passed on to customers.
  • But bond yields have started rising in anticipation of a rate-hike scenario. Banks are clear that lending rates are not going to fall further.

Continue reading “Financial Awareness-March(1-10) 2017”

Financial Awareness-February(21-28) 2017

  1. BharatQR code launched (Source: MINT)
  • Retail electronic payments will become more seamless with the launch of BharatQR code—a quick response (QR) code mandated by the government to enable digital payments without card swiping machines.
  • Currently, the QR code-based acceptance systems in the country are largely closed systems. Right now only 15 banks have come on board and are in the process of deploying Bharat QR code. The 15 banks are Axis Bank, Bank of Baroda, Bank of India, Citi Union Bank, DCB Bank Ltd, Karur Vysya Bank, HDFC Bank Ltd, ICICI Bank Ltd, IDBI Bank Ltd, Punjab National Bank, RBL Bank Ltd, State Bank of India, Union Bank of India, Vijaya Bank and Yes Bank Ltd.
  • BharatQR is a common QR code jointly developed by all the four major card payment companies—National Payments Corp. of India that runs RuPay cards, MasterCard, Visa and American Express—under instructions from the Reserve Bank of India (RBI).
  • It is a major revolutionary step because of interoperability. The merchants will be identified by one QR code whether the payment is through MasterCard, Visa or RuPay and this will result in deepening of acceptance infrastructure. Besides working as a common interface for the Visa/MasterCard/RuPay platform, BharatQR will also facilitate acceptance using Aadhaarenabled payments and Unified Payments Interface (UPI).

Continue reading “Financial Awareness-February(21-28) 2017”