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Daily Current Affairs for UPSC, IAS, UPPSC/UPPCS, BPSC, MPPSC, RPSC and All State PCS Examinations

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Animal Husbandry Infrastructure Development Fund

Why in NEWS ?

Cabinet Committee on Economic Affairs, chaired by Prime Minister, has approved setting up of Animal Husbandry Infrastructure Development Fund (AHIDF) worth Rs. 15000 crore in pursuance of recently announced Atma Nirbhar Bharat Abhiyan stimulus package.

About

AHIDF would facilitate much needed incentivisation of investments in establishment of such infrastructure for dairy and meat processing, value addition infrastructure and establishment of animal feed plant in the private sector.

Subvention, Moratorium and other Benefits:

• Government will provide 4% interest subvention to eligible beneficiaries from the Aspirational Districts and 3% for beneficiaries from other Districts.
• There will be 2 years moratorium period for principal loan amount and 6 years repayment period thereafter.
• Government of India would also set up a Credit Guarantee Fund of Rs 750 crore to be managed by NABARD which would provide credit guarantee to the projects which are covered under the MSME defined ceilings. Guarantee Coverage would be up to 25% of the Credit facility of the borrower.

Significance

• It would leverage several times more private investment and also motivate farmers to invest more on inputs thereby driving higher productivity leading to increase in farmers income.
• It is expected to help in direct and indirect livelihood creation for about 35 lakh people.

Interest Subvention Approved on Prompt Repayment of Shishu Loans Under Pradhan Mantri Mudra Yojana

IN NEWS

• Union Cabinet chaired by Prime Minister Shri Narendra Modi today approved approved a scheme for interest subvention of 2% for a period of 12 months, to all Shishu loan accounts under Pradhan Mantri Mudra Yojana (PMMY) to eligible borrowers.

BACKGROUND

• Pradhan Mantri MUDRA Yojana (PMMY) is a scheme launched by the Hon’ble Prime Minister on April 8, 2015 for providing loans up to 10 lakh to the non-corporate, non-farm small/micro enterprises.
• Under the scheme, Pradhaan Mantri Mudra Yojana three categories of interventions have been named which includes:

• Shishu :- Loan up to Rs 50,000/-
• Kishore :- Loan ranging from Rs 50,000/- to Rs 5 lakh
• Tarun :- Loan above Rs 5 lakh and below Rs 10 lakh

• This Scheme is for implementation of one of the measures relating to MSMEs, announced under the Atma Nirbhar Bharat Abhiyan. Under PMMY, loans for income generating activities up to Rs. 50,000 are termed as Shishu loans.

Major Impact

• The Scheme has been formulated as a specific response to an unprecedented situation and aims to alleviate financial stress for borrowers at the ‘bottom of the pyramid’ by reducing their cost of credit. The Scheme is expected to provide much needed relief to the sector, thereby enabling small businesses to continue functioning without laying off employees due to lack of funds.
• By supporting small businesses to continue functioning during these times of crisis, the Scheme is also expected to have a positive impact on the economy and support its revival, which is necessary for employment generation in future.

Annual TB Report 2020

IN NEWS

• Health Minister Dr Harsh Vardhan released the annual TB Report 2020 on 24th June,2020 through a virtual event.

KEY OUTCOMES

• According to the report, over 24 lakh TB patients have been notified in 2019. This amounts to a 14 percent increase in TB notification as compared to 2018.
• Near-complete on-line notification of TB patients has been achieved through the NIKSHAY system.
• There has been a reduction in the number of missing cases to 2.9 lakh cases as against more than 10 lakhs in 2017.
• Private sector notifications increased by 35 percent with 6.78 lakh TB patients notified.
• Due to easy availability of molecular diagnostics, the proportion of children diagnosed with TB increased to 8 percent in 2019 compared to 6 percent in 2018.
• Provision of HIV testing for all notified TB patients increased from 67 percent in 2018 to 81 percent in 2019.
• Expansion of treatment services has resulted in a 12 percent improvement in the treatment success rate of notified patients.

Co-operative Banks

Why in NEWS?

The Union Cabinet approved an ordinance to bring Urban Cooperative Banks (UCBs) and Multi-state cooperative banks (MSCBs) under RBI supervision.

What are Co-operative Banks?

• It is a financial entity which belongs to its members, who are at the same time the owners and the customers of their bank.
• Co-operative banks in India are registered under the States Cooperative Societies Act.
• The Co-operative banks are governed by the Banking Regulations Act 1949 and Banking Laws (Co-operative Societies) Act, 1955 and regulated by RBI.
• Cooperative institutions play a crucial role in financial inclusion and cater to both rural and urban areas.

Need of this Ordinance

• Prior to this Ordinance, cooperative banks were governed by dual control of cooperative societies as well as the RBI.
• While the role of cooperative society includes incorporation, registration, management, recovery, audit, supersession of board of directors and liquidation, whereas RBI is responsible for regulatory function.
• The government had earlier said that there was a need to enhance accountability of these banks which hold public money and are often riddled in controversies around mismanagement and corruption.
• In the wake of the Punjab & Maharashtra Cooperative (PMC) Bank crisis and other such lenders exposed the vulnerability of cooperative banks uncovering several irregularities
• Though Finance minister Nirmala Sitharaman, earlier in February 2020, had announced the government’s intention to bring the cooperative banks under RBI’s supervision and said that it will be done through an amendment to the Banking regulation Act but Union Information and Broadcasting Minister Prakash Javadekar on 24th Jun,2020 said that the government has issued an ordinance in this respect since the Banking Regulation (Amendment) Bill, 2020, could not be passed in the Budget session of the parliament, as it had to be curtailed due to COVID-19 pandemic.
• The government moves follows several instances of fraud and cheating in banks through accounting tricks, mismanagement of loans etc, resulting in a threat to deposits and stability of the country’s financial system.

About the Ordinance

• The Union Cabinet decided to bring all cooperative banks under the Reserve Bank of India through an ordinance.
• This was announced by Union Information and Broadcasting Minister Prakash Javadekar during a virtual press meet on 24th June, 2020.
• These banks will come under the supervision of the RBI with immediate effect from the date of the President’s approval on the ordinance.
• About 1500 cooperative banks with nearly Rs 5 lakh crore assets are brought under RBI supervision.
• It will give an assurance to 8.6 crore depositors in these banks that their money will stay safe.
• It is aimed to increase their accountability and strengthen their compliance with the regulatory framework.
• These banks will be supervised by the RBI in the same fashion as the scheduled banks, offering protection to depositors and reducing the space for mismanagement.
• The appointment of CEOs in such cooperative banks will now require prior approval from the regulatory authority- the RBI.
• Giving greater power to the RBI will prevent malpractices and ensure better regulation.

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