Facts Box: YSR Cheyutha Scheme

The YSR Cheyutha Scheme is to be launched in Andhra Pradesh on August 12, 2020. It aims to empower women from minority castes.

Highlights

The scheme will provide financial benefit of Rs 75,000 to those women who come under the age of 45 to 60 years. It aims at pension beneficiaries. The amount of Rs 75,000 is to be distributed in four equal installments of Rs 18,750 each per year. The amounts are to be transferred to the bank accounts of the beneficiaries.

The State Government has allocated Rs 4,500 crores to implement the scheme. The AP Government will also launch the YSR Asara Scheme along with YSR Cheyutha Scheme

YSR Asara Scheme

The scheme is to benefit 90 lakh women of self help group. Under the scheme, Rs 6,700 crores is to be distributed in one year.

Background

The State Government of Andhra Pradesh recently decided to extend financial assistance of YSR Cheyutha to those availing social security pensions under the YSR Pension Kanuka. This will benefit more than 8.21 lakh women from SC, ST, BC and minority communities.

Along with the decision, the other following decisions were also made by the state government

  • The Cabinet along with the extension of YSR Cheyutha scheme also approved to form the State Sand Corporation. Also, the formation of AP Rayalseema Drought Mitigation Project Development Corporation was approved.
    • The sand corporation is to monitor and address the issues related to sand mining, transportation and sale.
    • The AP Rayalseema Drought Mitigation Project Development Corporation is to be set up at an estimated budget of Rs 40,000 crores.
      • The project will address the drought condition in the Rayalseema region taking up irrigation projects.
    • The State Government decided to bring in Fish Feed Quality Control Act. The act is first of its kind. The act will help monitor and check quality of aquaculture feed.
      • An ordinance is to be issued to this effect
      • Around 40 feed analysis labs are to be established in the state.
      • This is being launched to safeguard aquaculture as 60% of expenditure is spent on feed alone.
    • The cabinet had approved to invest Rs 5 crores on cattle grazing training centres that have been proposed in the districts of Anantapur and Kurnool.

RBI Monetary Policy: Bank keeps repo rate unchanged

On August 6, 2020, the six-member Monetary Policy Committee (MPC) of Reserve Bank of India held its meeting in New Delhi. The committee was headed by RBI Governor Shaktikanta Das.

Highlights

During the meet, the following key decisions were taken

  • The repo rate was kept the same at 4%
  • The reverse repo rate was kept at 3.35%
  • The members decided to provide Rs 10,000 crore additional liquidity facility to National Housing Bank (NHB), National Bank for Agriculture and Rural Development (NABARD).
  • In order to mitigate COVID-19 impact on households, loans against gold have been enhanced to 90% of the value as against the current 75%.
  • The lenders will be allowed to restructure loans of individual borrowers, corporate to ease COVID-19 impact.
  • The stressed MSME borrowers are now eligible to restructure the debt if their accounts were classified standard.

The RBI Governor announced the following about the current economic condition of the country

  • The economic growth of India is to contract in the first half of fiscal beginning.
  • The MPC of RBI has cut repo rate by 115 basis points in the last two meetings. In total, the policy rate has been reduced by 250 bps in February 2019.
  • In June, the retail inflation was 6.09%. This includes food items such as meat, cereals, fish and pulses.

Monetary Policy Committee

The Monetary Policy Committee is constituted by the Government of India. It is tasked with framing policy by fixing bank rate, repo rate, reverse repo rate, cash reserve ratio. The committee is instituted by GoI under Section 45ZB of RBI act, 1934.

Composition

There are six members in the committee. Of these, three are nominated by the Governor. The Governor is the chairman of the committee. The deputy Governor is also a member.

Members

The members of the committee are appointed for a period of four years. They are not eligible for reappointment. They are selected by a Search-cum-Selection committee.