05th June, 2021 – Daily News

Topics covered – Central Govt Health Scheme (CGHS), Rashtriya Aarogya Nidhi (RAN), and Health Minister’s Discretionary Grant (HMDG) schemes, National Health Authority’s portal, Punjab Special Purpose Vehicle, 11 airport surveillance radars for the Indian Navy, Health ministers of NAM, ILO World Employment and Social Outlook: Trends 2021 report, State of Finance for Nature report, Expert Committee on Variable Capital Company, Rural Infrastructure Development Fund, RBI’s Monetary Policy Committee, International Day of Innocent Children Victims of Aggression.

Bulletins

  1. Ministry of Health has launched the revamped digital versions of Central Govt Health Scheme (CGHS), Rashtriya Aarogya Nidhi (RAN), and Health Minister’s Discretionary Grant (HMDG) schemes on National Health Authority’s portal.

  2. Punjab cabinet has announced the creation of Special Purpose Vehicle (SPV) to ensure supply of potable water on a long term sustainable basis in rural areas of water quality affected districts.

  3. Ministry of Defence has signed a contract with Mahindra Telephonics to procure 11 airport surveillance radars for the Indian Navy and the Indian Coast Guard at a cost of Rs 323.47 crore, under the ‘Buy and Make’ category’ of Defence Procurement Procedures (DPP).

  4. SEBI and the Luxembourg Commission de Surveillance du Secteur Financier (CSSF) have signed an MoU on mutual cooperation and technical assistance relating to the supervision of securities markets.

  5. Health ministers of NAM (Non-Aligned Movement) countries conducted a virtual meeting.

  6. International Labour Organization (ILO) has released the “World Employment and Social Outlook: Trends 2021” report.

  7. As per the State of Finance for Nature, annual investments in nature-based solutions (NbS) need to be tripled by 2030 and four-fold by 2050 from the current level to achieve the climate change, biodiversity and land degradation targets.

  8. Expert Committee on Variable Capital Company, headed by Dr K.P. Krishnan, has submitted its report on the feasibility of Variable Capital Companies in the International Financial Services Centres.

  9. Federal Bank has launched an exclusive NR (non-resident) savings account scheme for the Seafarer segment to provide banking services to mariners.

  10. NABARD has sanctioned Rs 254 crore to Odisha under Rural Infrastructure Development Fund (RIDF) for setting up of two mega piped drinking water supply projects.

  11. Wipro Limited and Finastra have partnered to help corporate banks across Asia-Pacific accelerate their digital transformation.

  12. Mumbai-based e-pharmacy startup PharmEasy has acquired peer Medlife.

  13. RBI’s Monetary Policy Committee (MPC).

  14. Lieutenant General Pradeep Chandran Nair has been appointed as the Director General of Assam Rifles.

  15. International Day of Innocent Children Victims of Aggression is observed on June 4.

Table of Content

National News

  1. Ministry of Health has launched the revamped digital versions of Central Govt Health Scheme (CGHS), Rashtriya Aarogya Nidhi (RAN), and Health Minister’s Discretionary Grant (HMDG) schemes on National Health Authority’s portal.
      • The integration with National Health Authority’s portal will provide benefits to patients in time effective manner.
      • It will also reduce the burden of beneficiaries regarding enrolment in the schemes or processing of claims under the schemes.
A) Central Govt Health Scheme (CGHS)
• CGHS is a comprehensive Health Scheme for Serving Employees, Pensioners, Members of Parliament, ex-MPs, etc., and their dependent family members, during last 7 years.
• The scheme has expanded to 72 Cities with more than 38 lakh beneficiaries.
• CGHS was launched in 1954, wherein till 2014 only 25 cities were covered.
• CGHS retired pensioners are provided Cashless treatment at empanelled centres.
• The Unit Trust of India Infrastructure Technology and Services Limited (UTI-ITSL) will ensure that the CGHS pensioner beneficiaries don’t face any inconvenience in terms of bill payments for their treatment.
B) Rashtriya Aarogya Nidhi (RAN)
• Financial assistance up to Rs 15 lakhs is provided to poor patients suffering from major life-threatening diseases/cancer/rare diseases, for medical treatment at Government hospitals.
• The eligibility criteria to avail services under RAN had been based on State/UT-wise BPL threshold.
C) Health Minister’s Discretionary Grant (HMDG)
• A maximum amount of Rs.1,25,000/- is provided to patients whose annual income does not exceed Rs.1,25,000/-, to offset the expenditure on hospitalization/treatment in Government Hospitals.
• Beneficiaries can apply for financial assistance under both schemes by providing their Ration card number and undergoing beneficiary verification process at any of the empanelled Govt. hospital.
• Their application will be processed in-house by the respective hospital and treatment can be started.
• On submission of the treatment details by the respective hospital, claims will be processed and payment would be released.

State News

  1. Punjab cabinet has announced the creation of Special Purpose Vehicle (SPV) to ensure supply of potable water on a long term sustainable basis in rural areas of water quality affected districts.
      • This first-of-its-kind in India SPV will be a utility company ‘Punjab Rural Water (Utility) Company‘ under the water supply and sanitation department.
      • Rs 25 crores has been allocated to support its functioning in the initial five years of operations. 64% of this amount is funded by World Bank and 36% by State Budget.
      • Chief Minister of Punjab is the Chairperson of the State Water Supply and Sanitation Mission.

Defence News

  1. Ministry of Defence has signed a contract with Mahindra Telephonics to procure 11 airport surveillance radars for the Indian Navy and the Indian Coast Guard at a cost of Rs 323.47 crore, under the ‘Buy and Make’ category’ of Defence Procurement Procedures (DPP).
      • Under the ‘Buy and Make’ category of defence procurement, initial purchase of equipment can be done from a foreign company, which is to be followed by indigenous production of such equipment by an Indian company.
      • This also involves ‘Transfer of Technology’ of critical technologies according to “specified range, depth and scope”.

Memorandum Of Understanding

  1. SEBI and the Luxembourg Commission de Surveillance du Secteur Financier (CSSF) have signed an MoU on mutual cooperation and technical assistance relating to the supervision of securities markets.

International News

  1. Health ministers of NAM (Non-Aligned Movement) countries conducted a virtual meeting.
      • Harsh Vardhan represented India at the meet.
      • NAM was formed in 1961.

Reports & Indices

  1. International Labour Organization (ILO) has released the “World Employment and Social Outlook: Trends 2021” report.
      • Global unemployment rate in 2020 was 5.4%.
      • Global unemployment rate in 2021 will be 6.3% and 5.7% in 2022.
      • There will be no recovery of employment till 2023.
      • There will be an increase in unemployment: from 187 million in 2019 to 220 million in 2020, 220 million in 2021 and 205 million in 2022.
      • The crisis-induced global shortfall in jobs is projected to stand at 75 million in 2021 and at 23 million in 2022.
ILO released World Employment and Social Outlook: Trends 2021” report
    • Gender based results – Men’s employment rate declined by 3.9% and women’s employment rate declined by 5%.
    • Youth employment rate fell by 8.7% and adults employment rate fell by 3.7%.
    • Latin America, Caribbean, Europe and Central Asia were the worst affected regions in the first half of 2021.
    • An estimated additional 108 million workers are now extremely or moderately poor, meaning that they and their family members are having to live on less than US $ 3.20 per day in purchasing power parity terms.
Working hour loss report
  1. As per the State of Finance for Nature, annual investments in nature-based solutions (NbS) need to be tripled by 2030 and four-fold by 2050 from the current level to achieve the climate change, biodiversity and land degradation targets.
      • The report was jointly produced by the United Nations Environment Programme, the World Economic Forum and the Economics of Land Degradation.
      • Approximately, $133 billion investment is put into nature-based solutions annually (using 2020 as base year). This is about 0.10% of the global GDP.
      • Public funds make up 86% and private finance make up 14% of these investments.
      • Public sector spending for the nature-based solutions is dominated by the United States ($36 billion a year) and China ($31 billion), followed by Japan, Germany and Australia.
      • Countries such as Brazil, India and Saudi Arabia are also spending large amounts of money, but they do not report internationally comparable data.
      • Commercial financial institutions, Investors, and Philanthropies including foundations and endowments contribute to 14% of total NbS financing equal to $18 billion a year.
      • By 2050, total investment of nature needs will amount to $8.1 trillion, while annual investment should reach $536 billion annually by 2050.
      • Forest-based solutions alone would amount to $203 billion per year. Some sectors such as marine environment were excluded from the report.
      • Suggestions – The report recommended reforming taxes, repurposed agricultural policies and trade-related tariffs and harnessing the potential of carbon markets.

Banking & Economy

    1. Expert Committee on Variable Capital Company, headed by Dr K.P. Krishnan, has submitted its report on the feasibility of Variable Capital Companies in the International Financial Services Centres.
        • The report was submitted to the Chairperson of the International Financial Services Centres Authority (IFSCA), Shri. Injeti Srinivas.
        • The IFSCA had set up this Committee to explore the potential for allowing variable capital company (VCC) to operate in the IFSCA, as an additional option through which asset managers could pool the investors’ funds.
        • The VCC structure removes some of the key limitations of companies and LLPs and provides for higher regulatory standards than those applicable to trusts.
        • Conventionally, pooling of funds in India is undertaken through three types of entities, namely, limited liability companies governed under the Companies Act, 2013; limited liability partnerships under the Limited Liability Partnership Act; and trusts governed under the Indian Trusts Act, 1882.
        • The Committee assessed the features of a VCC, in other jurisdictions such as the UK, Singapore, Ireland and Luxembourg.
        • The Committee recommended the adoption of a VCC-like legal structure for allowing fund management activity in IFSCs.
    2. Federal Bank has launched an exclusive NR (non-resident) savings account scheme for the Seafarer segment to provide banking services to mariners.

    3. NABARD has sanctioned Rs 254 crore to Odisha under Rural Infrastructure Development Fund (RIDF) for setting up of two mega piped drinking water supply projects.
        • The two mega projects will come up in Jajpur district (covering Badachana and Dharmasala blocks) and Puri district (covering Brahmagiri and Krushnaprasad block).
        • These projects will contribute in achieving the goal of provision of drinking water to the rural population by 2022.
About Rural Infrastructure Development Fund:
A) History
• Government of India created the RIDF in NABARD in 1995-96, with an initial corpus of Rs.2,000 crore.
• Rs 29,848 crore allocation was made for 2020-21 under RIDF XXVI.
• Now, the cumulative allocation to RIDF has reached Rs 3,78,348 crore.
B) Eligible Activities
At present, there are 37 eligible activities under RIDF as approved by GoI.. The eligible activities are classified under three broad categories i.e.
• Agriculture and related sector
• Social sector
• Rural connectivity
C) Eligible Institutions
• State Governments / Union Territories
• State Owned Corporations / State Govt. Undertakings
• State Govt. Sponsored / Supported Organisations
• Panchayat Raj Institutions/Self Help Groups (SHGs)/ NGOs
D) Rate of interest
• With effect from 01 April 2012, the interest rates payable to banks on deposits placed with NABARD and loans disbursed by NABARD from RIDF have been linked to the Bank Rate prevailing at that point of time.
E) Repayment period
• Loan to be repaid in equal annual instalments within seven years from the date of withdrawal, including a grace period of two years.
• The interest shall be paid at the end of each every year, including grace period.
F) Phasing of RIDF projects
• The implementation phase for projects sanctioned is spread over 2-5 years, varying with type of the project and also location of the State.
  1. Wipro Limited and Finastra have partnered to help corporate banks across Asia-Pacific accelerate their digital transformation.
      • The companies will create a unique offering that combines Wipro’s comprehensive services catalogue with Finastra’s front-to-back trade finance and cash-management solutions.
  2. Mumbai-based e-pharmacy startup PharmEasy has acquired peer Medlife.
      • Dhaval Shah and Dharmil Sheth are the founders of PharmEasy.
  3. RBI’s Monetary Policy Committee (MPC):
Key highlights:
A) Policy Rates:
• Policy rates – unchanged
• This is the sixth time in a row that RBI has kept the benchmark rates unchanged.
• Maintained an ‘accommodative stance’.
Rates
B) GDP Growth:
• GDP growth rate for FY22 – 9.5% (reduced from 10.5%)
a. Quarterly GDP growth forecasts for FY22: -
(i) Q1 - 18.5%
(ii) Q2 - 7.9%
(iii) Q3 - 7.2% and
(iv) Q4 - 6.6%
• As per the govt’s data, the economy contracted 7.3% in the previous financial year (FY21).
• Consumer Price Index (CPI) inflation is forecasted at 5.1% in FY22 (5.2% in Q1, 5.4% in Q2, 4.7% in Q3, 5.3% in Q4).
C) Government Securities Acquisition Program:
• Another operation under Government Securities Acquisition Program 1.0 (G-SAP 1.0) for Rs 40,000 crore purchase will be conducted by the RBI.
• Also, G-SAP 2.0 worth Rs 1.2 lakh crore will be taken in the second quarter of FY22 to support the market.
D) New Financing Facility for Contact Intensive Sectors:
• Central bank will open a Rs 15,000 crore on-tap liquidity at repo rate for contact intensive sectors till March 2022. This will give lending to the hospitality, car and bus rental operators, restaurants, salons, and other high-contact services.
E) Support to SIDBI for MSME:
• RBI provided a special liquidity facility of ₹16,000 crore to SIDBI for on-lending or refinancing the MSMEs, particularly smaller MSMEs and other businesses.
F) Exposure Limit For Small Businesses Under Resolution Framework 2.0:
• RBI also enhanced the exposure limit to avail the new debt recast / restructuring scheme for small businesses and individual business loans to ₹50 crore from ₹25 crore earlier under Resolution Framework 2.0.
G) Foreign Exchange Reserve:
• RBI’s foreign exchange reserve is set to touch the $600 billion mark. This robust foreign exchange reserve strengthens RBI’s position.

Appointments

  1. Lieutenant General Pradeep Chandran Nair has been appointed as the Director General of Assam Rifles.

Important Days

  1. International Day of Innocent Children Victims of Aggression is observed on June 4.

Start Quiz of 05th June 2021

Q.1) How much financial assistance is provided to the patients under the Rashtriya Aarogya Nidhi for medical treatment at Government hospitals?
Q.2) When was the Central Govt Health Scheme launched?
Q.3) Which state has announced the creation of Special Purpose Vehicle (SPV) to ensure supply of potable water on a long term sustainable basis in rural areas of water quality affected districts?
Q.4) Which company has received a contract from Ministry of Defence for 11 airport surveillance radars for the Indian Navy and the Indian Coast Guard?
Q.5) What is the Global unemployment rate forecast for 2021 by “World Employment and Social Outlook: Trends 2021” report of ILO?
Q.6) How much investment is being put in the nature-based solutions worldwide at present, as per the State of Finance for Nature report?
Q.7) Who heads the Expert Committee on Variable Capital Company set up by IFSCA to explore the potential for allowing variable capital company (VCC) to operate in the IFSCA?
Q.8) Which of the following statement is incorrect with respect to Rural Infrastructure Development Fund?
Q.9) What is the corpus of on-tap liquidity set up by RBI for contact intensive sectors at repo rate?
Q.10) When is the International Day of Innocent Children Victims of Aggression observed?
CEO of Anujjindal.in


About Anuj Jindal

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Anuj Jindal, the founder, is an ex-manager from SBI, with an M.Com from Delhi School of Economics. He also has a JRF in Commerce & Management and NET in HRM, along with more than 4 years of experience in the field of Education.

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