Economy & Banking Current Affairs

Business, Economy and Banking in Current Affairs 2019 with latest news and current affairs in Agriculture, Industry, Banking, Capital Markets, Import and Export and Government schemes in commercial sector.

22nd Financial Stability and Development Council meeting chaired by Finance Minister

On May 28, 2020, the Union Finance Minister Nirmala Sitaraman chaired Financial Stability and Development Council meet.

Highlights

The meeting reviewed current domestic and global economic situation, financial vulnerabilities issues, liquidity of Micro financial institutions, Non-Banking Financial corporations, regulatory responses, etc. The council noted that COVID-19 posed a great threat to the global financial system and the timing of recovery is uncertain.

About the Council

The financial stability and development council is an apex body constituted by GoI. The idea was mooted in 2008 by the Raghuram Rajan Committee. The Council was set up in 2010 by the then Finance Minister Pranab Mukerjee.

The council composes of Governor of RBI, chief economic advisor, secretaries and chairman of SEBI (Securities and Exchange Board of India), IRDA (Insurance Regulatory and Development Authority), PFRDA (Pension Fund Regulatory and Development Authority), IBBI (Insolvency and Bankruptcy Board of India). The Finance Minister chairs the meeting.

Functions of the council

The Council deals with issues such as financial sector development, financial stability, inter-regulatory coordination, financial inclusion, financial literacy.

Apart from these, the council also coordinates with India’s International interfaces such as Financial Action Task Force. The Financial Minister has powers to change the functions of the council from time to time. Currently, the council is working to deal with financial issues created by COVID-19.

NPCI launched Pai: An Artificial Intelligence Virtual Assistant

On May 27, 2020, the National Payment Corporation of India launched Artificial Intelligence based chatbot called Pai. The Chatbot aims to increase financial inclusion in India.

Highlights

The PAI can be accessed 24/7. It provides information about NPCI products. The queries can be sent by the users through text or voice. In order to send queries, the users shall use websites of RuPay, NPCI and UPI. Currently, PAI is available in English and Hindi languages. It is to be launched soon in other languages as well.

The AI based chatbot was created by Bengaluru based startup CoRover Private Limited.

National Payment Corporation of India

The NPCI was founded in 2008 and was established by Reserve Bank of India. AEPS is one of the biggest success of NPCI. AEPS is Aadhaar Enabled Payment System. In July 2019, the number of AEPS transactions crossed 200 million.

Services

The Services provided by NPCI are as follows

  • Bharat Bill Payment System: It is a one-stop bill payment system.
  • BharatQR: It is a code developed for ease of payments and interoperability.
  • BHIM: A mobile application for unified payment interface
  • Cheque Truncation System
  • IMPS (Immediate Payment Service): A real time inter bank payment system
  • National Common Mobility Card
  • FASTag
  • RuPay
  • Unified Payment Interface