- The Reserve Bank’s new framework for revival and rehabilitation of MSMEs will help bring down bad loans in the sector. The new framework for revival and rehabilitation applicable to MSMEs having loan limits up to Rs 25 crore, including accounts under consortium or Multiple Banking Arrangement (MBA).
- The framework as proposed by Ministry of MSME will be operationalized by all the banks not later than June 30, 2016. The formation of Special Mention Account and mandatory formation of a committee at each district for stressed MSMEs by the banks would enable faster resolution of stress in an MSME account, thereby reducing NPAs in MSMEs.
Implementation of Pradhan Mantri Awaas Yojana-Gramin to Achieve Housing for All by 2022
- The Union Cabinet chaired by Prime Minister Narendra Modi has given its approval for the implementation of the rural housing scheme of Pradhan Mantri Awaas Yojana- Gramin on March 23, 2016.
- Under the scheme, financial assistance is provided for construction of pucca house to all houseless and households living in dilapidated houses. The expenditure involved in implementing the project in a span of 3 years from 2016-17 to 2018-19 is Rs 81975 crore.
- It is proposed that one crore households would be provided assistance for construction of pucca house under the project during the period from 2016-17 to 2018-19. The scheme woul be implemented in rural areas throughout India except Delhi and Chandigarh. The cost of houses would be shared between Centre and States.
- The government in the President’s address in the Joint Sessk of Parliament in May, 2014 has announced that “By the time the nation completes 75 years of its Independence (by 2022), every family will have a pucca house with water connection, toilet facilities, 24×7 electricity supply and access”.
DIPP Notified 49% FDI Under Automatic Route in Insurance, Pension Sector
- The Commerce and Industry Ministry notified on March 23, 2016 that 49% Foreign Direct Investment (FDI) under automatic approval route in insurance and pension sector. The announcement regarding this was made by Finance Minister Arun Jaitley in his Budget speech.
- Department of Industrial Policy and Promotion (DIPP) said the government has liberalised its FDI policy in Insurance and pension sector. Earlier, only up to 26% FDI was permitted through the automatic approval route. For FDI up to 49%, the approval of the Foreign Investment Promotion Board was required.
- Ther-c are 52 insurance companies operating in India, of which 24 are life insurance business and 28 in general insurance. During April to December, 2015, FDI into the country grew by 40% to $ 29.44 billion.
Interest Rates on Various Small Savings Schemes for Q1 of 2016-17 Notified
- The interest rates for various Small Savings Schemes were recalculated with reference to the G-Sec yields of equivalent maturity for the months December, 2015 to February, 2016. Based on this calculation, the interest rates on various Small Savings Schemes for the first quarter of 2016-17 have been notified on March 18, 2016.
- The rates of interest on various small savings schemes for the First Quarter of Financial Year 2016-17, on the basis of the interest compounding/ payment built-in in the schemes.
- As notified on February 16, 2016, instead of annual resetting of interest rates for the next financial year, the interest rates from now on will be reset every quarter based on the G-Sec yields of the previous three months.
Health Ministry Launched Longitudinal Ageing Study in India
- BP Sharma, Secretary, Ministry of Health & Family Welfare, launched the Longitudinal Ageing Study in India (LASI), on March 22, 2016. This is the largest survey of its kind. It will survey more than 60000 elderly over 25 years plan.
