GS1
Category: SOCIAL ISSUES
Swamih Investment Fund
The issue in news
Special Window for Completion of Affordable and Mid-Income Housing (Swamih Investment Fund) Created.
Main points
- The fund has been created for funding stalled projects that are net-worth positive, including those projects that have been declared as Non-Performing Assets (NPAs) or are pending proceedings before the National Company Law Tribunal under the Insolvency and Bankruptcy Code.
- The objective is to give relief to homebuyers of stalled projects and provide last-mile funding to stressed affordable and middle-income housing projects.
- It is an alternative investment fund (AIF) to provide priority debt financing for the completion of stalled housing projects.
- It covers stalled, brown-field, RERA registered residential developments that are in the affordable housing/mid-income category, are net-worth positive and require last-mile funding to complete construction.
GS2
Category: GOVERNANCE
- Electricity (Rights of Consumers) Rules, 2020
The issue in news
The Union Power Ministry has drafted the Electricity (Rights of Consumers) Rules, 2020.
Main points
- This is for the first time that rules have been drafted for the rights of electricity consumers.
- Under the draft rules, State Electricity Regulatory Commissions (SERCs) will fix the average number and duration of outages per electricity consumer per year for DISCOMs.
- Only two documents for connection up to a load of 10 kW and no estimation of demand charges for loads up to 150 kW are required expediting getting the connection.
- A new connection would be provided and the existing connection modified in not more than 7 days in metro cities, 15 days in other municipal areas and 30 days in rural areas.
- There will be an option to pay bills in cash, cheque, debit cards and net banking but bills of Rs. 1,000 or more have to be paid online.
- The draft recognises an emerging category of consumers known as “Prosumers”.
- Persons who are consumers and have also set up rooftop units or solarised their irrigation pumps.
- They will have the right to produce electricity for self-use and inject excess in the grid using the same point of the connection up to limits prescribed by the SERC.
- There are provisions for automatic compensation to the extent possible for delayed service by the DISCOMs.
GS 3
Category: ECONOMY
- LS nod to amend banking Act
The issue in news
The Lok Sabha passed an amendment to the Banking Regulation Act, 1949.
Main points
- Banking Regulation Act, 1949 regulates the functioning of banks and provides details on various aspects such as licensing, management, and operations of banks.
- The Bill replaces the Banking Regulation (Amendment) ordinance to the same effect promulgated in June 2020.
Highlights:
- The amendment will bring cooperative banks under the direct supervision of the RBI and bring them under some of the same governance norms as commercial banks.
- It will also allow the RBI to amalgamate or reconstruct a stressed cooperative bank without first imposing a moratorium.
- These amendments are proposed in order to protect the interests of the depositors.
- pandemic-hit economy: ‘Recovery not yet entrenched, may be gradual’
The issue in news
Reserve Bank of India (RBI) Governor has said that, while there were some signs of stabilisation in the pandemic-hit economy, recovery was yet to take firm root and would probably take longer to gain momentum.
Main points
- It is observed that high-frequency indicators of agricultural activity, manufacturing PMI and private estimates for unemployment point towards some stabilisation of economic activity in the second quarter of 2020-21.
- It is opined that the recovery is likely to be gradual as efforts towards reopening of the economy are confronted with rising infections.
Way forward:
- The RBI governor highlighted five critical areas that would determine India’s ability to sustain growth in the medium-run. These include:
- Human capital, in particular education and health
- Productivity
- Exports, which are linked to raising India’s role in the global value chain
- Tourism
- Food processing and associated productivity gains
- Indian banks and the financial system would need to respond proactively to opportunities arising from the NEP (new education policy) for new financing.
- The banks must also ensure the protection of depositors’ interest.
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