Business, Economy & Banking Current Affairs MCQs

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The Union Minister of Coal and Mines launched the Mineral Exploration Hackathon and the National District Mineral Foundation (DMF) Portal in Hyderabad. This centralized platform provides data on 645 DMFs, enhancing transparency and tracking developments. DMFs, non-profit trusts established under the MMDR Amendment Act 2015, aim to benefit mining-affected areas. Funded by contributions from mineral concession holders, the portal offers centralized visibility, project oversight, dynamic analytics, and best practices for effective implementation.

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The Economic Survey noted the European Union’s Carbon Border Adjustment Mechanism (CBAM) conflicts with the Paris Agreement’s spirit. CBAM is an EU tariff on carbon-intensive products, ensuring imported goods pay for their carbon emissions, aligning their carbon price with domestic products. EU importers must buy carbon certificates based on embedded emissions. This encourages cleaner production globally by pricing carbon emissions fairly. CBAM aims to prevent undermining the EU’s climate objectives.

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According to the WTO’s “World Tariff Profiles” Report, 2024, India is the second-largest user of Non-Tariff Measures (NTMs) in 2023. NTMs are policy measures other than ordinary customs tariffs that can impact international trade in goods by changing quantities traded, prices, or both. Examples include quotas, price controls, Sanitary and Phytosanitary measures, and Technical Barriers to Trade. While many NTMs aim to protect public health or the environment, they also affect trade through information, compliance, and procedural costs.

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The Reserve Bank of India (RBI) introduced a Prompt Corrective Action (PCA) framework to improve weak Urban Cooperative Banks (UCBs). This framework aims for timely supervisory intervention, ensuring UCBs initiate remedial measures to restore financial health. The PCA will focus on monitoring capital, asset quality, and profitability. It replaces the existing Supervisory Action Framework (SAF) and will apply to UCBs with deposits exceeding Rs 100 crore. The PCA framework serves as an early intervention tool to enhance the stability and performance of UCBs.

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The Asian Development Bank (ADB) has approved a $200 million loan to improve solid waste management and sanitation in 100 Indian cities under the Swachh Bharat Mission 2.0. This funding will be used for building waste processing facilities and community sanitation projects. The agreement, signed by Juhi Mukherjee and Mio Oka, aims to strengthen urban waste management systems and advance India’s environmental and public health goals.

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The Union Minister of Consumer Affairs launched Version 4.0 of the Price Monitoring System (PMS) Mobile app, developed to enhance price data quality for 38 essential commodities, up from 22. The app, initially launched in 2021, receives daily retail and wholesale prices from 550 centers. This data aids government and analysts in policy decisions regarding CPI inflation, covering items like rice, wheat, oils, milk, and newly added produce like brinjal and banana.

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Haryana’s Chief Minister announced the state’s procurement of all crops at Minimum Support Price (MSP), making it the first in India to do so. Additionally, he waived Rs 133 crore in irrigation charges and promised Rs 137 crore in pending compensation for crop damage due to natural calamities. MSP, recommended by the Commission for Agricultural Costs and Prices (CACP), ensures fair prices for farmers and promotes crop diversification.

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The yen carry trade became notable after the Bank of Japan raised interest rates and cut bond purchases, causing the yen to strengthen. Investors reacted by unwinding their positions to prevent losses, which led to a selloff in US tech stocks and affected global markets, including Asia. A carry trade involves borrowing in a country with low interest rates and investing in assets in a country with higher returns.

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The RBI recently introduced Continuous Clearing of Cheques under the Cheque Truncation System (CTS) for faster cheque clearance. CTS is an online system that captures and transmits cheque images and Magnetic Ink Character Recognition (MICR) data electronically, eliminating the need for physical cheque movement. CTS uses a PKI-based security system with dual access control, user ID, passwords, cryptobox, and smart card interfaces. Only CTS-2010 compliant cheques, with standard security features like watermarks and invisible ink logos, are accepted for clearing. Standardization helps banks in processing and recognizing cheques efficiently.

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The Deputy Governor of the Reserve Bank of India (RBI) mentioned that the RBI is reviewing the foreign investment limit in the overnight index swap (OIS) market. OIS is a derivative that swaps fixed interest rates for a predetermined overnight index rate to manage interest rate risk. The OIS rate is calculated daily based on the average overnight lending rate. It allows financial institutions to swap interest rates without refinancing their loans.
One institution swaps a floating overnight rate while the other swaps a fixed short-term rate, settling differences at the end of the agreement.