Economy Current Affairs - 2019
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The Micro, Small and Medium-sized Enterprises Day (MSME) Day was celebrated across the world on 27 June. The theme for MSME Day 2019 was ‘Big Money For Small Business: Financing the SDGs’.
Theme SME Day 2019– Big Money For Small Business: Financing the SDGs. It is dedicated towards raising awareness of need for greater investment into small and mid-sized businesses in developing countries and celebrate gigantic contribution which smaller companies make to global economy.
With the aim of overcoming challenges faced by MSME, the International Trade Center, (a United Nations’ entity) that works in internationalization of micro and SMEs on occasion of MSME Day 2019 launched its flagship report tilted- The SME Competitiveness Outlook 2019: Big money for small businesses.
Celebrations in India
To observe the International MSME Day, Union Ministry of Micro Small and Medium Enterprises organized an international convention on theme- Indian MSMEs, Global Aspirations, in New Delhi.
Moreover, as part of continued celebrations of MSME day, the 2nd edition of International SME Convention 2019 is scheduled to be held from 28- 29 June 2019.
100 SMEs (Small and medium-sized enterprises) selected by a jury from among 34011 nominations received from across India are also being felicitated under the aegis of 6th Annual India SME 100 Awards, which is India ‘s most prestigious annual awards initiative for small and medium enterprises.
About UN MSME Day
United Nations General Assembly (UNGA) in its 74th Plenary meeting held on 6 April 2017 declared 27 June to be observed as Micro, Small and Medium-sized Enterprises Day so as to recognizes importance of MSME in achieving sustainable development goals (SDG’s) and in promoting innovation, creativity and sustainable work for all.
The Reserve Bank of India (RBI) committee led by Bimal Jalan (former RBI governor) constituted for considering guidelines for transfer of central bank’s surplus funds to government delayed submitting its report after lack of consensus among its members. The panel was originally supposed to submit its report in April 2019.
The RBI committee was appointed in December 2018 to review Economic Capital Framework (ECF) for central bank after then Union Ministry of Finance under Arun Jaitely advised RBI to transfer surplus funds to central government.
Arguments by Finance Ministry: The finance ministry was of view that the buffer of 28% of gross assets maintained by RBI bank is well above global norm of about 14%. Thus, RBI board in its meeting held on 19 November 2018, decided to constitute a panel to examine Economic Capital Framework (ECF).
This led to loggerheads between government and RBI under its previous governor Urjit Patel (who later resigned) over Rs.9.6 lakh crore surplus capital that central bank keeps with itself.
About ECF Panel
Members: The six member committee headed by Bimal Jalan includes- Rakesh Mohan (former deputy governor of RBI) as vice-chairman, Subhash Chandra Garg (finance secretary), N S Vishwanathan (RBI deputy governor), and lastly RBI central board members Sudhir Mankad and Bharat Doshi.
Objective: The panel was entrusted to review best practices followed by central banks throughout the world in making assessment and provisions for risks.
Timeline: The ECF panel was required to submit its report to RBI within 90 days of its first meeting. The 1st meeting of ECF took place on 8 January 2019 following which the panel was given a 3 month extension.
The Bimal Jalan led panel will now meet one more time before submitting its report by end of June 2019 and the delay in finalising report which may be over difference of opinion will also be discussed.