1. Financial Literacy Week Begins.
The Reserve Bank of India has chosen customer protection as theme for the Financial Literacy Week beginning on June 4. This week long event ending on June 8 will focus on creating awareness among customers of banks about financial products and services, good financial practices and going digital, the RBI said in a statement.
The week will focus on four consumer protection messages like `know your liability` for unauthorised electronic banking transaction and Good practices for a safe digital banking experience. Among various messages, customers will be told through banners and posters that in case of unauthorised digital transaction if bank is informed within 3 days, the liability of the account holder is zero.
Resolution of complaint is to be done by the bank concerned within period not exceeding 90 days from the date of receipt of the complaint, it said. Besides, banks have been asked to also create awareness about Banking Ombudsman scheme of the RBI, it said. Bankers, Financial Literacy Counsellors (FLCs) and other stakeholders will participate to create awareness.
2. Global Economy Is Healthy But Growth Will Slow: World Bank.
The world economy is generally healthy but must contend with rising interest rates in wealthier countries and weaker demand for commodities in developing nations. It also faces risks from trade disputes, financial volatility and geopolitical tensions.
The steadily expanding global economy should remain resilient — at least for a couple of years — the World Bank says. The anti-poverty agency predicts global growth will decelerate slightly from a solid 3.1 per cent this year to 3 per cent next year and 2.9 per cent in 2020.
The world economy is generally healthy but must contend with rising interest rates in wealthier countries and weaker demand for commodities in developing nations. It also faces risks from trade disputes, financial volatility and geopolitical tensions.
The World Bank predicts that US growth will register 2.7 per cent in 2018, aided by tax cuts, before slowing to 2.5 per cent next year and 2 per cent in 2020. China`s growth is projected at 6.5 per cent this year, 6.3 per cent in 2019 and 6.2 percent in 2020.
3. Repo Rate Increased By 25 Bps In Second Bi-Monthly Monetary Policy Statement (2018-19).
Second Bi-monthly Monetary Policy Statement, 2018-19 Resolution of the Monetary Policy Committee (MPC) Reserve Bank of India. On the basis of an assessment of the current and evolving macroeconomic situation at its meeting today, the Monetary Policy Committee (MPC) decided to: Increase the policy repo rate under the liquidity adjustment facility (LAF) by 25 basis points to 6.25 per cent. Consequently, the reverse repo rate under the LAF stands adjusted to 6.0 per cent, and the marginal standing facility (MSF) rate and the Bank Rate to 6.50 per cent.
The decision of the MPC is consistent with the neutral stance of monetary policy in consonance with the objective of achieving the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting growth. The main considerations underlying the decision are set out in the statement below.
4. Centre Constitutes Group To Suggest Changes In SEZ Policy.
The Centre has constituted a group of eminent persons to study the Special Economic Zones, SEZ Policy of India. The group will be headed by Industrialist Baba Kalyani.
The group will evaluate the SEZ policy, suggest measures to cater to the needs of exporters in the present economic scenario and make the SEZ policy WTO compatible. The Group has to submit its recommendation in three months.
The SEZ Policy was implemented from 1st April, 2000. Subsequently, the Special Economic Zones Act, 2005 was passed by Parliament in May, 2005 which received Presidential assent on the 23rd June, 2005 and the Special Economic Zone Act was enacted.
The SEZ Act, 2005, supported by SEZ Rules, came into effect on 10th February, 2006.
5. FDI Inflows To India Fall By $4 Billion Last Year: UN Report.
Foreign Direct Investment to India decreased to 40 billion dollars last year from 44 billion dollars in 2016 while outflows from India, the main source of investment in South Asia, more than doubled, according to a new trade report by the UN.
According to the World Investment Report 2018 by the UN Conference on Trade and Development (UNCTAD) global foreign direct investment flows fell by 23 per cent in 2017, to USD 1.43 trillion from USD 1.87 trillion in 2016. “Downward pressure on FDI and the slowdown in global value chains are a major concern for policymakers worldwide, and especially in developing countries,” UNCTAD Secretary-General Mukhisa Kituyi said.
FDI to India decreased from USD 44 billion in 2016 to USD 40 billion in 2017. But outflows from India, the main source of FDI in South Asia, more than doubled to USD 11 billion, the report said.