Business, Economy & Banking Current Affairs - 2019
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The Multi-dimensional Poverty Index 2018 report prepared by the United Nations Development Programme (UNDP) and the Oxford Poverty and Human Development Initiative makes the following observations about India:
- India has reduced its poverty rate drastically from 55% to 28% in 10 years, with 271 million people moving out of poverty between 2005-06 and 2015-16.
- India still had 364 million poor in 2015-16, the largest for any country, although it is down from 635 million in 2005-06.
- Poverty reduction among children, the poorest states, Scheduled Tribes, and Muslims was fastest.
- Of the 364 million people who were MPI poor in 2015-16, 156 million (34.6%) were children whereas in 2005-06 there were 292 million poor children in India. This represents a 47% decrease or 136 million fewer children growing up in multidimensional poverty.
- Even though poverty among Muslims and STs has been reduced poverty the most over the 10 years, these two groups still had the highest rates of poverty.
- 80% of ST members were poor in 2005-06 and 50% of them were still poor in 2015-16. While 60% of Muslims were poor in 2005-06, 31% of them were still poor in 2015-16.
- Bihar with more than half its population in poverty was the poorest state in 2015-16.
- The four poorest states Bihar, Jharkhand, Uttar Pradesh, and Madhya Pradesh were still home to 196 million MPI poor people, which was over half of all the MPI poor people in India.
- Jharkhand had shown the greatest improvement, followed by Arunachal Pradesh, Bihar, Chhattisgarh, and Nagaland.
- Kerala, one of the least poor regions in 2006, reduced its MPI by around 92%.
- 3 billion People live in multidimensional poverty in the 105 developing countries and represents 23%, or nearly a quarter, of the population of these countries, are deprived in at least one-third of overlapping indicators in health, education, and living standards.
- Multidimensional poverty particularly acute in Sub-Saharan Africa and South Asia and these two regions account together for 83% (more than 1.1 billion) of all multidimensionally poor people in the world.
- Two-thirds of all multidimensionally poor people live in middle-income countries, with 889 million people in these countries experiencing deprivations in nutrition, schooling, and sanitation.
- The level of global child poverty is staggering, with children accounting for virtually half (49.9%) of the world’s poor. Over 665 million children live in multidimensional poverty.
- In 35 countries, at least half of all children are MPI poor and in South Sudan and Niger around 93% of all children are MPI poor.
The MPI provides data about “who is poor” and “how they are poor”.
Tags: Africa • Arunachal Pradesh • Asia • Bihar • Chhattisgarh • Jharkhand • Kerala • Madhya Pradesh • Multi-dimensional Poverty Index • Multi-dimensional Poverty Index 2018 • Nagaland • Uttar Pradesh
The Reserve Bank of India (RBI) has fined Punjab National Bank (PNB) Rs 2 crore for violation of compliance with regulatory directions regarding SWIFT operations.
The RBI has toughened the stance against banks on all kind of regulatory norms post PNB fraud which put it to question the ability of the central bank. Earlier in March 2019, RBI had imposed a total monetary fine of Rs 8 crore on three banks- Karnataka Bank, United Bank of India and Karur Vysya Bank for not complying with the directions on Swift messaging software.
What is SWIFT?
SWIFT which stands for Society for Worldwide Interbank Financial Telecommunications is a messaging network that financial institutions use to securely transmit information and instructions through a standardized system of codes.
Under SWIFT, each financial organization has a unique code which is used for sending and receiving payments.
Suppose a customer of a Bank of America of New York Branch wants to send money to the ICICI bank account in Bengaluru, he can approach the Bank of America’s New York Branch with the account number of ICICI to which the money needs to be deposited and ICICI Banks Swift Code for the Bengaluru branch.
Bank of America’s New York Branch will send the payment message to the ICICI Bengaluru branch over the secure SWIFT network. Once ICICI ‘s Bengaluru branch receives the SWIFT message about the incoming payment, it will clear and credit the money to the account.
SWIFT code is used when the transfer between two banks happens internationally as we use IFSC codes for the domestic transfers i.e. financial transactions within the geographical territory of India.
Tags: IFSC codes • Karnataka Bank • Karur Vysya Bank • PNB • Punjab National Bank • RBI • Reserve Bank of India • SWIFT • SWIFT operations • United Bank of India • Worldwide Interbank Financial Telecommunications