Recently, Saudi Arabia hosted the G-20 foreign ministers’ meeting.
Focus: Cross-border movement amid the Covid-19 pandemic.
The foreign ministers acknowledged the importance of opening borders, and promoting measures to allow the economy to thrive in light of the protective measures for the Covid-19 pandemic.
India updated the G-20 foreign ministers about steps taken by India including Vande Bharat Mission and creation of travel bubbles for the welfare and protection of foreign citizens stranded in India as well as its own citizens abroad.
It is an informal group of 19 countries and the European Union.
Representatives of the International Monetary Fund and the World Bank are also part of G-20.
It represents about 2/3rd of the world’s population, 85% of global GDP, 80% of global investment and over 75% of global trade.
It does not have any permanent secretariat or headquarters.
Currently, Saudi Arabia holds the presidency of G-20.
It is the first Arab nation to take over the G20 Presidency.
Recently, the RBI released revised Priority Sector Lending (PSL) guidelines.
The guidelines align with emerging national priorities and also bring sharper focus on inclusive development.
New additions to Priority Sector Lending (PSL) sectors
Bank finance to start-ups up to Rs. 50 crore.
Loans to farmers for installation of solar power plants for solarisation of grid connected agriculture pumps and loans for setting up Compressed BioGas plants.
Higher credit limit for Farmers Producers Organisations (FPOs) undertaking farming with assured marketing of their produce at a predetermined price.
The credit limits for renewable energy, health infrastructure, including the projects under ‘Ayushman Bharat’, have been doubled.
It seeks to address the issues concerning regional disparities in the flow of priority sector credit at district level which includes:
Ranking districts on the basis of per capita credit flow to the priority sector.
Building an incentive framework for districts with comparatively low flow of credit and a dis-incentive framework for districts with comparatively high flow of priority sector credit.
Higher weightage has been assigned to priority sector credit in ‘identified districts’ where priority sector credit flow is comparatively low
Priority Sector Lending
The RBI mandates banks to lend a certain portion of their funds to specified sectors, like agriculture, Micro, Small and Medium Enterprises (MSMEs), export credit, education, housing, social infrastructure, renewable energy among others.
All scheduled commercial banks and foreign banks (with a sizable presence in India) are mandated to set aside 40% of their Adjusted Net Bank Credit (ANDC) for lending to these sectors.
Regional rural banks, co-operative banks and small finance banks have to allocate 75% of ANDC to PSL.
The idea behind this is to ensure that adequate institutional credit reaches some of the vulnerable sectors of the economy, which otherwise may not be attractive for banks from the profitability point of view.
Inaugural run of South India’s 1st and country’s 2nd Kisan Rail between Anantapur and New Delhi was flagged off recently.
Inaugurated by: Union Minister of Agriculture & Farmer Welfare.
The first Kisan Rail was flagged off between Devlali (Maharashtra) and Danapur (Bihar) as a weekly service.
Objective of Kisan Rail: To provide priority to the farming sector and facilitate transportation of perishable agricultural products to various market places across the country.
Anantapur is fast becoming the Fruit Bowl of Andhra Pradesh.
The train service between Anantapur – New Delhi will cover a distance of 2150 kms in 40 hours.