Business, Economy & Banking Current Affairs - 2020
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.
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Recently, the United States of America removed the “developing” tag for dozens of countries. India is one amongst them. These countries are to be classified as developed economies
The “Developing” status for a country in the US is associated with US Trade Act, 1974. The act authorized General System of Preferences (GSP). The intention of the system is to help the poor countries develop faster. The act was later adopted by the World Trade Organization (WTO) and was extended to other rich countries as well. In WTO, around two-thirds of the countries classify themselves as developing.
Recently US had withdrawn India from its GSP listings. Under this preference there were more than 2,000 items that were of worth 6.3 billion USD. This affects India harshly. Hence, India has been asking the US to re-include the GSP status. Unfortunately, US has permanently put an end to India’s GSP status by removing it from the list of developing.
Tags: developing countries • Economic Growth • Foreign Trade • GSP • GSP Benefits
On February 15, 2020, the board of Reserve Bank of India (RBI) decided to sync the Financial year of the bank with the Fiscal Year. The Fiscal Year begins in April and ends in March and the Financial year is between July and June
The Central Board of Directors of RBI at the 582nd meeting recommended aligning of Fiscal and financial years. The alignment would change 8-decade practice of RBI.
The alignment was recommended by an expert committee led by Bimal Jalan. According to the committee, the central bank will be able to provide estimates of the surplus transfers better after the alignment. This will reduce the interim dividend that the RBI has to pay to the Government. However, the interim dividend will be restricted to extraordinary circumstances. It will also bring in cohesiveness with the reports and policy projections made by the RBI.
Why the move?
The Centre had been demanding for an interim dividend (between April to August) as its final balance sheet is prepared in August. This was mainly because RBI had a different accounting year.
Tags: Budget • Budget Estimate • Budgeting • Fiscal Year • Interim Dividend