Daily Current Affairs Quiz 2019<\/a><\/strong><\/p>\n\n\n\nSitharaman will meet chiefs of all state-run as well as\nprivate sector banks on Monday to discuss issues related to credit growth in\nkey segments of the economy, including automobile, retail, small businesses,\naffordable housing and non-banking financial companies and housing finance companies\n(HFCs).<\/p>\n\n\n\n
Sitharaman and bank chiefs are expected to discuss priority\nareas \u201cfor the banking sector in the coming months for accelerating gross\ndomestic product growth”, the finance ministry said.<\/p>\n\n\n\n
The minister will also meet representatives of key\nministries handling micro, small and medium enterprises (MSMEs), electronics\nand information technology, rural development and commerce next week to find\nways to implement over 100 recommendations by a panel led by former Securities\nand Exchange Board of India chairman U.K. Sinha for improving the\ncompetitiveness of the MSME sector and to enhance the chances of small\nbusinesses to access credit.<\/p>\n\n\n\n
Indicating that the finance ministry is determined to tackle\nthe liquidity crunch affecting the housing finance sector, the statement said\nthe National Housing Bank was opening a fresh liquidity window for HFCs. A\nliquidity infusion of \u20b910,000 crore for housing financiers is being made\navailable from Friday for lending to individuals looking to purchase affordable\nhomes. HFCs, a key market for non-bank lenders, was one of the segments hit by\nthe liquidity crunch, which, in turn, was precipitated by a series of defaults\nby Infrastructure Leasing and Financial Services Ltd last year.<\/p>\n\n\n\n
According to N.R. Bhanumurthy, professor at the National\nInstitute of Public Finance and Policy, a think tank, the policy response to\nthe liquidity crunch should reflect the extent of the problem. \u201cThere doesn\u2019t\nseem to be much clarity on the extent of the crisis in the banking and non-banking\nsectors. Once we assess that accurately, we could frame the right\nsolutions,” he said.<\/p>\n\n\n\n
The ministry also said it has endorsed the Reserve Bank of\nIndia\u2019s suggestions on how to implement Sitharaman\u2019s budget proposal for\nproviding partial credit guarantee to state-run banks buying pooled assets of\nnon-bank finance lenders. The idea is to ensure that financially sound shadow\nbanking entities should not struggle for funds.<\/p>\n\n\n\n
Experts welcomed the decision to take more measures to\nimprove access to credit for businesses. \u201cThis is one short-term measure that\nis very much needed, which will help the economy. Another short-term measure\nthat is needed is to get all government departments on board in framing policy\nresponses to economic issues that will improve efficiency in the system and\nhelp lower the cost of doing business,” said Rajat Kathuria, director and\nchief executive, Indian Council for Research on International Economic\nRelations.<\/p>\n\n\n\n
The announcements imply that the National Democratic\nAlliance administration is shifting gears to decisively address an economic\ndownturn that could come in the way of Prime Minister Narendra Modi\u2019s goal of\nbuilding a $5-trillion economy over the next few years.<\/p>\n\n\n\n
The sobering trend seen in India\u2019s economic indicators\ncoincide with worries over a global recession amid an escalating US-China trade\nwar that threatens business confidence.<\/p>\n\n\n\n
Official data earlier this week showed that output of the\neight infrastructure sectors in India, which constitute over 40% of the index\nof industrial production, remained almost flat in June. The economy, which\nexpanded at 8% in the first quarter of FY19, subsequently slowed down to a\nfive-year low of 5.8% in the quarter ended March 2019\u2014 resulting in 6.8% growth\nfor the full financial year.<\/p>\n\n\n\n
RBI, which has so far cut the benchmark interest rate thrice\nin 2019 by 25 basis points each, may go for another round of rate cut when its\nmonetary policy committee meets on 7 August.<\/p>\n\n\n\n
According to a monthly review shared earlier this week by EY\nconsultancy, India\u2019s $2.7 trillion economy needs a real growth rate close to 9%\nin order to reach the $5 trillion-mark by 2024-25, assuming an inflation rate\nof 4%.<\/p>\n\n\n\n
While improving access to finance for businesses and\nnon-bank lenders, the government is also making policy changes rapidly to\ntackle the toxic assets in the banking sector that has affected banks\u2019 ability\nto finance new projects.\n\nThe Parliament had recently cleared amendments\nto the Insolvency and Bankrupcty Code to enable quick decision-making among\ncreditors of bankrupt companies and to reduce the time lost in litigation,\nwhile rescuing or liquidating such companies. It has also announced steps to\ngive relief to farmers by way of income support, and to traders, shop keepers\nand the self employed in terms of pensions.\n\n\n\n<\/p>\n","protected":false},"excerpt":{"rendered":"
Finance minister Nirmala Sitharaman started the process of rolling out a slew of measures to boost industry\u2019s access to credit, including opening a \u20b910,000 crore liquidity window for home financiers. Daily Current Affairs Quiz 2019 Sitharaman will meet chiefs of all state-run as well as private sector banks on Monday to discuss issues related to […]<\/p>\n","protected":false},"author":13,"featured_media":4337,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[45],"tags":[],"class_list":["post-4335","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-current-affairs-articles"],"_links":{"self":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts\/4335","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/comments?post=4335"}],"version-history":[{"count":1,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts\/4335\/revisions"}],"predecessor-version":[{"id":4338,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/posts\/4335\/revisions\/4338"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/media\/4337"}],"wp:attachment":[{"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/media?parent=4335"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/categories?post=4335"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.gkseries.com\/blog\/wp-json\/wp\/v2\/tags?post=4335"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}