Daily Financial News Analysis – 8th Nov’19 | PDF Download

Stop predatory pricing

• Warned ecommerce companies of strict action.

1. don’t halt predatory pricing on their platform
2. flouting foreign direct investment (FDI) rules

•  The issue of violating norms: US and the EU Amazon: they are in compliance with Indian rules
• Amazon said that discounts were being offered directly by sellers to buyers.
•  In USA: whether Amazon has an unfair advantage over third-party merchants when it competes with them to sell similar products on its own platform.
• CCI in 2018: Flipkart and Amazon were not dominant among online marketplace platforms in India.
• DPIIT has asked Amazon and Flipkart to provide details of their top five sellers
• Compliant with the goods and services tax (GST) in letter and spirit
• Details on the total business done by the top five sellers
•  Investments and commission agreements with vendors
• Variations of commission agreements with sellers
• Criteria for commissions and whether they are discretionary,
• As well as details of any associations with payment gateways

Alternate investment debt fund

• Cap of ₹400 crore for a single project
• Urged home buyers to pay their remaining dues to enable early completion.

 Financial Stability and Development Council

• FSDC is an apex-level body constituted by GoI.
•  Idea: Raghuram Rajan Committee (2008)
•  2010 FM Pranab Mukherjee created FSDC.
•  FSDC is not a statutory body.
• It is headed by the finance minister.
•  Financial stability
•  Financial sector development
• Inter–regulatory coordination
•  Financial literacy
• Financial inclusion
•  Macro prudential supervision
• Nirmala Sitharaman reviewed the state of the economy, including stress in the financial sector.
•  Industrial output growth in August contracted
• Output of 8 core infrastructure industries contracted
• Cybersecurity issues
•  Inter-regulatory issues
• Status of the NBFCs
•  The RBI is very closely monitoring the top 50 NBFCs which represent roughly 75 per cent of the asset size of the NBFC sector.
• This was the second meeting of the FSDC after the Modi 2.0 government assumed office.
• Financial Resolution and Deposit Insurance (FRDI) Bill was also discussed during the meeting.

Pradhan Mantri Mudra Yojana Survey

• PMMYS conducted by the Labour Bureau under the ministry of labour and employment.
• 68.7% of Mudra loans disbursed in the first three years of the scheme were cornered by 5 states — Karnataka, Tamil Nadu, Odisha, Bihar and Maharashtra.
• These states accounted for 55% of the 1.12 crore additional jobs created.
•  Total loans sanctioned under the scheme during the period were Rs 5.71 lakh crore and these went to 12.27 crore loan accounts.
• Shishu: Rs 50,000
• Kishor: Rs 50,000 and up to Rs 5 lakh
•  Tarun: above Rs 5 lakh and up to Rs 10 lakh

 Niti Aayog’s Health Index

• Major parameter for ranking states.

1. Enrolment in Ayushman Bharat
2. Out-of-pocket expenditure of a household on healthcare
3. Services provided to beneficiaries under the scheme

• The central government is reviewing the two-year-old index by adding new benchmarks to ensure a more realistic picture.
•  National health authority, the apex body responsible for implementing the flagship public health insurance scheme, plans to include the Pradhan Mantri Jan Arogya Yojana in the Niti Aayog health index.
•  Ayushman Bharat was launched in September 2018.
•  Vision: to achieve Universal Health Coverage (UHC)
• It aims to provide health insurance of ₹5 lakh to 100 million families or 500 million subscribers based on the 2011 Socio Economic Caste Census data.
•  The Niti Aayog launched the health index last year as a composite measure of states and Union territories based on 23 indicators with major weightage to outcomes that include the national mortality rate, fertility rate, and sex ratio.

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