Current Trends in Indian Economy
Six years since demonetisation, cash with public at record high of ₹30.88 lakh crore
- As per the fortnightly data on money supply released by the RBI the currency with the public increased to ₹30.88 lakh crore as on October 21. The central bank data for Reserve Money had put the currency in circulation at ₹17.7 lakh crore on November 4, 2016.
- ₹30.88 lakh crore with the public illustrates that cash usage is still robust even six years after the demonetisation move.
- At ₹30.88 lakh crore, the currency with the public is 71.84% higher than the level for the fortnight ended November 4, 2016.
- On November 8, 2016, Prime Minister Narendra Modi had announced the decision to withdraw ₹500 and ₹1,000 denomination notes with the ultimate aim of reducing corruption and black money in the economy.
- The intent of the move, which was criticised by many experts for poor planning and execution, was to make India a “less cash” economy.
Reports and Indices
UNDP Report: Social, Economic Benefits of a Global Green Revolution at Risk
- The report titled “How Just Transition Can Deliver the Paris Agreement,”released by the United Nations Development Programme (UNDP) states that the nations fail to recognize the opportunities given by a “green revolution” face increased social inequality, civil unrest, and less competitive economy if suggested net-zero emissions paths are not carried out efficiently.
- The concept of a “just transition” is critical to fulfilling the Paris Agreement’s global climate targets as countries transition to sustainable economies.
- Note: A Just Transition means ensuring efficient and coherent climate change mitigation and adaptation policies and regulations that limit labour market disruptions and job losses and support for workers and companies impacted by the transition.
- The report was released in advance of the UNFCCC (UN Climate Change) Conference of the Parties (COP 27), which will be held in Sharm El-Sheikh, Egypt
- The report examines both enhanced short-term climate pledges, referred to as “nationally determined contributions” (NDCs), and long-term strategies in which governments explain their plans for net zero emissions.
- As of October 31, 2022, 170 nations had submitted an upgraded NDC, and 65 (38%) of those countries explicitly include just transition.
- The ratio of developed to developing nations is nearly equal (51% vs 49%), with Central and Eastern Europe leading the way, followed by the Americas and the Caribbean, and Africa. Asia-Pacific and Arab countries fall behind.
About United Nations Development Programme (UNDP)
- Formation – Novemeber 22, 1966
- Head – Achim Steiner
- Headquarters – New York.
Money & Banking
Amended Electoral bond scheme sales from tomorrow
- Recently, the government had notified a 10day window in October for the 22nd tranche of electoral bonds under the Centre amended the Electoral Bond Scheme.
- The amendment grants itself the power to conduct extra fortnight of electoral bond sales in years when States and Union Territories with a legislature have polls.
About Electoral Bond Scheme
- Launched in 2018 as an alternative to cash donations to political parties.
- State Bank of India is the only bank authorised to issue and encash these bonds.
- Electoral bonds are purchased anonymously by donors and are valid for 15 days from the date of issue.
- As debt instruments, these can be bought by donors from a bank, and the political party can then encash them.
- These can be redeemed only by an eligible party by depositing the same in its designated account maintained with a bank.
- The bonds are issued by SBI in denominations of Rs 1,000, Rs 10,000, Rs 1 lakh, Rs 10 lakh and Rs 1 crore.
- The bonds are available for purchase by any citizen of India for a period of ten days each in the months of January, April, July and October as may be specified by the Central Government. Recently this provision has been amended to conduct extra fortnight sale when states or Union territories have elections.
