Business, Economy & Banking Current Affairs - 2019
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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As per the data revealed by Reserve Bank of India (RBI), India’s foreign exchange (Forex) reserve rose to a life-time high of $426.42 billion (in week to 21 June 2019) after it surged by $4.215 billion boosted by higher foreign portfolio investments (FPI) and a stable rupee.
Background: Earlier, the Forex reserves had scaled a record high of $426.028 billion in week to 13 April 2018. Since then it had been fluctuating and had even fallen by more than $35 billion, as monetary authority had been heavily intervening in market to salvage Indian rupee, which was worst performing currency in Asia throughout 2018.In previous reporting week (prior to June 21), reserves had declined by $ 1.358 billion to $422.2 billion.
India’s reserve position with International Monetary Fund (IMF) also rose by $9.6 million to $3.354 billion.
Reason: This rise in reserves was on account of increase in foreign currency asset, which is a major component of overall foreign exchange reserves of the country.
Foreign Currency Assets: expressed in terms of dollars includes effect of appreciation or depreciation of non-US units such as British pound, the Japanese yen and euro held in forex reserves. In reporting week of 21 June, foreign currency assets increased by $4.202 billion to $398.649 billion.
Gold Reserves: remained unchanged at $22.958 billion.
Special Drawing Rights (SDR): with IMF increased by $4.2 million to $1.453 billion. India’s reserve position with the fund also rose by $9.6 million to $3.354 billion..
Significance: According to market experts, with $427 billion, reserves can take care of imports for almost 10 months.
About Foreign Reserves
It is the reserve assets held by a central bank of country in foreign currencies which can act as a buffer and can help economy in challenging times. It can also be used to back liabilities on their own issued currency and to influence monetary policy of the country. Almost all countries across the world, regardless of size of their economy, hold significant forex reserves.
Importance: Forex reserves are one of the key revenue earning sources for a country central bank, which invests money in foreign government bonds and also with IMF and other secure investment class.
India’s FOREX Reserves includes components:
- Foreign currency assets (FCAs)- It constitutes largest component of Indian Forex Reserves and are expressed in US dollar terms.
- Gold Reserves
- Special Drawing Rights (SDRs)
- Reserve Tranche Position (RTP) of RBI with International Monetary Fund (IMF).
Higher forex reserves are must for a fast-growing economy such as India with higher imports and lower export earnings.
Tags: Foreign currency assets • Foreign Portfolio Investments • Foreign Reserves • FPI • Gold Reserves • IMF • India’s Forex Reserves • International Monetary Fund • RBI • Reserve Bank of India • Reserve Tranche Position • Special Drawing Rights
The Reserve Bank of India (RBI) has launched Complaint Management System (CMS), on its website for facilitating RBI’s grievance redressal process.
It is a software application launched by RBI for lodging complaints against any regulated entity with public interface such as commercial banks, urban cooperative banks (UCBs), Non-Banking Financial Companies (NBFCs).
Objective: To facilitate RBI’s grievance redressal process and also to improve customer experience in timely redressal of grievances.
Need: For maintaining trust and sustaining the confidence of consumers in the banking system and other financial service providers (FSPs), prompt and effective grievance redressal mechanism together with customers empowerment through education is must.
Keeping convenience of customers in mind, RBI has designed CMS in a way to enable online filing of complaints.
Targeted Solution: Once the complaint is registered it would be directed to appropriate office of Ombudsman or Regional Office of RBI.
Transparent Procedure: The application has the feature of keeping complainants fully informed via auto-generated acknowledgements and enabling them to track status of their complaints as well as to file appeals online against the decisions of Ombudsmen, where applicable. Thus help improving transparency in system.
Tracking: The application is also provided with various dashboards which will help RBI to effectively track progress in redressal of complaints.
Feedback: Complainants can also voluntarily share feedback on their experience in obtaining redressal thus helping the service provider to further improvise its services.
Way Ahead: CMS will be accessible on desktop and on mobile devices. In future, RBI also plans to introduce a dedicated Interactive Voice Response (IVR) system for tracking status of complaints.
RBI can leverage the data from CMS for analytics purpose, which can then be used for regulatory and supervisory interventions, if required.
Tags: Complaint Management System • Grievance Redressal Mechanism • Interactive Voice Response • Lodging Complaints • NBFC • Non-Banking Financial Companies • RBI • RBI CMS • RBI Complaint Management System • UCB • Urban Cooperative Banks