GENERAL AWARENESS-ECONOMY

GIRO Advisory Group (GAG) under the chairmanship of Prof. Umesh Bellur on 23 April 2014 has
submitted its report to Reserve Bank of India (RBI)

Union Government has decided to continue export subsidy of 3300 rupees/tonne on raw sugar shipments
for months of April and May 2014.

WPI- Wholesale Price Index for month of March 2014 was recorded at 5.7%, which was 3-month high.
This hike was driven up by increases in prices of food items and fuel costs.

The Basel Committee on Banking Supervision on 15 April 2014 issued Final standards for measuring and
controlling large exposures of banks to customers.

World Trade Organisation projected that the world trade grow by 4.7 percent in 2014

World Bank has projected that the economic growth rate of India for the fiscal year 2014-2015 will be 5.7
percent

MCA notified rules on providing insurance cover for public deposits

Reserve Bank of India adopted the new Consumer Price Index (CPI) combined as the key measure of
Inflation

The Reserve Bank of India on 1 April 2014 adopted the Consumer Price Index (CPI) as the key
measure of Inflation. It was adopted in the first bi-monthly monetary policy statement for 2014-15 on
the basis of recommendations of Urjit R Patel Committee report on Revising and Strengthening the
Monetary Policy Framework. Till now the Reserve Bank of India (RBI) was using Wholesale Price
Index (WPI) to gauge and measure indicative inflation projections. CPI reflects cost of living.

RBI has granted in-principle approvals to IDFC Ltd and Bandhan Financial Services Pvt Ltd to start new
banks in India
RBI has capped the Ways and Means Advances limit for the first half of the new financial year 2014-15 at
35000 crore rupees for Union Government.

Repo Rate kept unchanged by RBI in First Bi-monthly Monetary Policy Statement 2014-15

India GDP rises to 5.5 percent in 2014-15: Asian Development Outlook 2014
President Pranab Mukherjee on 30 March 2014 cleared the re-promulgation of the SEBI Ordinance
Securities Laws (Amendment) Bill 2013.
NCDEX launched the Worlds first bajra contract for the benefit of Indian farmers.
BHEL signed a contract 125 crore rupees from Uttarakhand Jal Vidyut Nigam Limited
Spices Boards released figures say that export of spices of India from April to December 2013 has
increased by 41 percent in terms of rupees
The Reserve Bank of India (RBI) extended the timeline for full implementation of the Basel III capital
regulations by a year
EPFO on 24 March 2014 announced to provide Universal Account Number (UAN) to its five crore
subscribers from 1 October 2014
Bank of India on 24 March 2014 launched Instant Money Transfer (IMT) scheme in Mumbai
SEBI announced on 25 March 2014 to release the Foreign Account Tax Compliance Act (FATCA)
compliance norms in the fiscal year 2014-15.
A RBI panel headed by Aditya Puri submitted its report on 22 March 2014. The Report is titled Data
Format for Furnishing of Credit Information to Credit Information Companies (CICs). The committee has
made wide ranging recommendations on issues relating to credit information, such as, increasing its
coverage, format of reports and best practices to be followed by credit institutions, credit information
companies (CICs) and the Reserve Bank.
The Government of India divested its 9 percent stake in Axis Bank on 21 March 2014.
The foreign direct investment (FDI) grew in January 2014 by 1.5 per cent to 2.18 billion US dollar
compared to 2.15 billion US dollar in January 2013.
The Reserve Bank of India (RBI) issued notice to banks to take measures to counter the threat expected
to arise from discontinuation of Windows XP
The Reserve Bank of India (RBI) on 19 March 2014 extended the 80:20 scheme to import gold to five
private banks.( HDFC Bank, Axis Bank, Kotak Mahindra Bank, IndusInd Bank and Yes Bank. )
IOC sold 10% of government stake for 5340 crore rupees to OIL and ONGC
Reserve Bank of India (RBI) hiked the trade related remittance limit from 2 lakh rupees to 5 lakh rupees
per transaction
Indias exports have contracted by 3.67 percent in February 2014 to 25.7 billion dollars, which is the first
in past eight month
Reserve Bank of India (RBI) on 7 March 2014 announced to set up a committee under the Financial
Stability and Development Council (FSDC) to set the guidelines for the banking sector to comply with
Basel-III capital norms.

Indian Revenue Department tightened baggage rules to curb illegal Gold Import
Government hiked interest rates on fixed deposit scheme offered by post offices by up to 0.2 percent and
will come into effect from 1 April 2014
Current Account Deficit (CAD) declined to 0.9 percent of Gross Domestic Product (GDP) in Quarter
3 (October - December) of 2013-14.
Union Ministry of Commerce and Industry launched the DMIC chapter of Uttar Pradesh at Lucknow
RBI has extended date for exchange of pre-2005 banknotes to 1 January 2015 and advised banks to
facilitate the exchange of these notes for full value
Government raised the number of workdays under MNREGA from 100 days to 150 days
Rural development agency NABARD announced to form a new concept called Joint Liability Group (JLG)
on 24 February 2014 to finance small Farmers.
The Union Cabinet approved the setting up of Coal Regulatory Authority (CRA) on 20 February 2014.
IMF has projected that the economic growth for 2014-15 of India will be 5.4% and suggested India to
strengthen its inflation management policies.
The gross non-performing assets (NPAs) of listed banks rose 35.2 per cent to 2.43 trillion rupees during
the first three quarters of the 2013-14.
Union Government raised the import tariff value on gold and silver to 421 US dollar per 10 grams and 663
US dollar per kilogram respectively.

BUDGET HIGHLIGHTS(Important. Click Here.):

Union Agriculture Ministry released the Second advance estimates of Crop Production on 14 February
2014
CSO estimated Indias economic growth in 2013-14 fiscal to be 4.9 percent as compared to the growth
rate of 4.5 percent in 2012-13.
Chairman of NABARD, HK Bhanwala announced that the organisation has sanctioned loans worth over
19100 crore rupees under the RIDF to states.
Technical report on making payment system effective was released by RBI with objective of effective
payment system ensuring safe and secured
Government has approved increase in FRP for sugarcane by 10 rupees per quintal for 2014-15 to 220
rupees per quintal from 210 rupees per quintal
ITA(Indian Tea Assoc.) announced that tea Indias production has gone up by 6.5 percent in 2013 as
production rose to 1200 million Kg against 1126 million kg in 2012.
Government announced that economy might have expanded by 4.5 percent in fiscal year 2012-13 as
compared to previous estimate of 5 percent.

Federal Aviation Administration of the US downgraded the safety ratings of Indian aviation on 31 January
2014 from top to the second category.
Internet user base in India projected to reach 243 million by June 2014: IAMAI
Agriculture Ministry has issued detailed guidelines and strategy for implementation of National Mission on
Oilseeds and Oil Palm.
India overtook Japan to become the third largest crude oil importer in the World.
US Chamber of Commerce released the International Intellectual Property (IP) Index and India ranked
lowest in International Intellectual Property (IP) Index.
India Inclusive Innovation Fund (IIIF) launched by National Innovation Council and the Ministry of Micro,
Small and Medium Enterprises
EGoM has approved a SUC of 5 percent of the annual gross revenue on all new airwaves that will be
acquired in auction.
RBI raised the Repo rate under LAF by 25 basis points from 7.75% to 8% and kept the CRR of
scheduled banks unchanged at 4% of NDTL.
The Reserve Bank of India (RBI) issued guidelines for loans restructured by non-banking finance
companies (NBFCs) on 23 January 2014.
Finance Ministry approved a proposal to provide minimum monthly pension of 1000 rupees to workers of
organised sector under (EPS-95).
Ratings and Research firm CRISIL released its Indian Economic Forecast for 2014-15 on 21 January
2014.
World Economic Outlook projected Indias Economic Growth at 4.5 percent for 2013-14.
CCEA approved sale of the Governments residual stakes of Hindustan Zinc worth 16500 crore rupees.
Government holds 29.5% stakes of the company.
RBI expert panel under Dr. Urjit R Patel, the Deputy Governor of RBI and was constituted on 12
September 2013 , suggested adoption of new CPI for Anchoring Monetary Policy.
Veerappa Moily, announced to set-up a MOT to carry out re-assessment work of hydrocarbon resources
in 26 sedimentary basins in India.
RBI has constituted an Expert Committee to Review Governance of Boards in India, which will be chaired
by PJ Nayak, former Chairman and CEO of Axis Bank.
IICA and FICCI signed MoU to Raise Awareness on Corporate Regulation and Governance and for
promoting the Corporate Affairs Agenda
Union Government has extended the benefits of the NMP(Natural Manufacturing Policy) throughout India
to boost manufacturing sector.
IIFCL signed an agreement with the K-EXIM for infrastructure finance and covers cooperation and
investment financing related to infrastructure.

Empowered Group of Ministers (EGoM) approved on 16 January 2014, the sale of 10 percent stake in
IOC to ONGC and OIL.
The Reserve Bank of India (RBI) included Hong Kong and Macau in the sensitive list.
The WPI declined to 6.16 percent in December 2013 as compare to 7.52 percent in November 2013.
GoM led by Sharad Pawar has approved the incentives to the sugar industry for exports of up to 40 lakh
tonnes of raw sugar for two years
Coal India Ltd (CIL) board declared a dividend of 290 percent to its shareholders for the financial year
2013-14 on 14 January 2014.
Consumer Retail inflation came down in December 2013 to 9.87percent as against 11.16 percent in
November 2013.
NABARD has reduced the refinance rates for the banks and other lending agencies by 0.20 percent to
promote rural credit and rural infrastructure
The IRDA allowed insurance companies to invest in Equity exchange traded funds and proposed
guidelines for such investments
IRDA constituted Suresh Mathur Panel to suggest ways for improving FDI in insurance sector.
India to revise GDP growth rate from 6.2 to 7 percent for 2011-12 to correct the anomaly in industrial
output data.
BOJ and RBI concluded an agreement for expansion of the maximum amount of the Bilateral Swap
Agreement (BSA) to 50 billion dollars.
Export of India has grown 3.49 percent to 26.3 billion dollars and the imports dipped 15.25 percent to 36.4
billion dollar in December 2013
Government has notified new natural gas pricing formulae to be in effect from 1 April. Rates of all
domestically produced fuel will be almost doubled.
DIPP has issued a press note restricting use of non-compete clauses in both Greenfield and Brownfield
projects.
The Kelkar Committee submitted the first part of its report on 8 January 2014. A Committee was set up
under Vijay Kelkar on 13 May 2013 to suggest ways of raising domestic oil and gas output. The
committee recommended continuing with the present production-sharing regime in contracts for blocks
and allows companies to recover exploration and production costs.
SEBI has made it compulsory for all investments into Collective Investment Scheme funds to be made
through banking channels and not in cash
HSBC Services Purchasing Managers Index (PMI) released showing shrinking of Indian Services sector
in December 2013.
Reserve Bank of India has allowed the Non-Banking Financial Companies (NBFCs) to lend up to 75
percent of the value of gold

China to be become a partner in the proposed NIMZ(National Investment and Manufacturing Zones) in
Andhra Pradesh
The Reserve Bank of India (RBI) selected the Clearing Corporation of India Ltd (CCIL) as legal entity
identifiers (LEIs) on 6 January 2014.
RBI has allowed the Indian companies to issue non-convertible or redeemable preference shares or
debentures to non-resident shareholders as bonus.
Merger & Acquisitions (M & A) in the India economy declined by 11.5% in the year 2013.

India has signed a credit agreement of 160 million dollar with World Bank. The agreement was signed for
Rajasthan Road Sector Modernisation Project

The price of non-subsidized LPG hiked by 220 rupees per cylinder. A household is entitled for nine
subsidized LPG cylinder at present.

Union Finance minister told the regulators to implement FSLRC report

8TH Financial Stability Report (FSR) released by the Reserve Bank of India (RBI).

PPPAC-a high level committee of the Government has appraised five proposals in Port Sector, which will
be recommended for final approval to CCEA.

RBI has launched an inflation indexed saving bonds that offers protection to retail investors from price
rise.

Fiscal deficit to touch 5.2% in FY2014 : Report by CRISIL.

The finance Ministry on 23 December 2013 directed public sector banks (PSBs) to act as insurance
brokers from 15 January 2014.

The net direct tax collection increased by 13.7% to reach 4.12 lakh crore rupees till December 20, 2013 of
the current fiscal year 2013-14.

The Cabinet approved free trade agreement between India and the Association of South East Asian
Nations (ASEAN) on 19 December 2013.

Currency swap agreement between India and Japan enhanced to 50 billion dollars from 15 billion dollar

SEBI exempted the Government from making an offer to public shareholders for acquiring the shares of
the Indian Overseas Bank (IOB).

The Rangarajan panel recommended the guidelines and the task of implementation lie with the National
Highway Authority of India (NHAI).

The High Level Committee under Justice N.K. Sodhi to Review the SEBI (Prohibition of Insider Trading)
Regulations, 1992 submitted its report to SEBI Chairman. The Committee has made many
recommendations to the legal framework for prohibition of insider trading in India.