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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GoI to organize more than 100 Hunar Haats in next 5 years

The Ministry of Minority Affairs will organize more than 100 Hunar Haat in the next five years. The move aims to increase employment opportunities to craftsmen, artisans and culinary experts and also to increase their market exposure.


The Ministry will organize Hunar Haats in Chennai, Delhi, Kolakata, Bengaluru, Lucknow, Patna, Dehradun and Indore. The ministry has also sanctioned to set up more than 100 Hunar hubs in different parts of the country.

The Ministry in its report said that more than 65,000 artisans and craftsmen have been employed through Hunar Haats in the last 2 years.


Indian Handicrafts have great recognition in international market. US and EU are the major destinations that account to 65% of export of Indian handicrafts. China is a new buyer. Other countries where Indian crafts have great market includes Israel, Uruguay, Columbia and chile. In 2019, India exported 128 billion rupees worth handicrafts. Last year, it stood at 118 billion rupees. The increase is 9%.

Government measures

The GoI has taken several steps to develop the handicraft sector. Government set up Indian Institute of Carpet at Bhadohi. It also reduced interest rates to MUDRA loans provided to handicrafts and artisans. The custom duties and exercises that were paid for importing inputs of handicrafts were refunded through Duty Drawback Channel.

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RBI to buy and sell Government Securities worth Rs 10,000 crores

On December 23, 2019, the Reserve Bank of India will buy and sell government securities of Rs 10,000 crores under a special Open Market Operation. Such moves are implemented by the federal bank in order to bring down the interest rates of long-term securities. This time RBI has named its move as “Operation Twist”.

There are different types of Government Securities issued by the Federal Bank.

Operation Twist

The buying of long-term bonds and selling of short-term bonds by RBI is called operation twist. When the long-term bonds are bought by RBI, their demand increases. This lowers long term yields. This way the yield curve gets twisted and hence the name “Operation Twist”. This has significant effect on the long term interest rated that govern the investment and growth in the economy.

Operation Twist is generally used by Central Banks when long term interest rates remain high in spite of lowering interest rates.

United States implemented the operation twice, in 1961 and 2011.

What is Open Market Operation?

It is a tool used by the RBI to smoothen liquidity conditions in the country. The main objective of OPO is to regulate money flow in the country. RBI operates the OMO through commercial banks and does not deal with the public directly.

Key Features of Government Securities

The Government Securities can be issued only by Governments at the Centre and State and also by Semi-Governmental authorities. The semi-Governmental Authorities are those authorized by the GoI.

When the RBI wants to increase money supply in the economy, it purchases government securities. It sells government securities when the need to suck out liquidity occurs.

Legislation of Government Securities

A Legal framework for issuance of government securities was provided by the Public Debt Act, 1944. It was replaced by the Government Securities Act, 2006. It oversees government securities and defines purpose of securities which is predominantly raising loans.

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