No perceptible effect on economy: NITI VC on Rs 2,000 note withdrawal

NEW DELHI, MAY 20

(PTI): The RBI’s decision to withdraw Rs 2,000 currency notes from circulation will not have any ‘perceptible effect’ on the economy as any such notes returned will be replaced by either equivalent cash in lower denomination notes or a deposit, former

NITI Aayog Vice Chairman Arvind Panagariya has said.

Panagariya further said the likely motive behind this move is to make the movement of illicit money more difficult.

“ We will not see any perceptible effect on the economy. Any currency in Rs 2,000 notes returned will be replaced by either equivalent cash in lower denomination notes or a deposit. So money supply will not be impacted,” he told PTI.

Panagariya noted that Rs 2,000 currency notes represent only 10.8 per cent of the cash currently in the hands of the public and probably most of it is being used for illicit transactions.

The Reserve Bank of India on Friday announced withdrawal of Rs 2,000 currency notes from circulation, and existing notes in circulation can either be deposited in bank accounts or exchanged by September 30.

The bank notes in Rs 2,000 denomination will continue to be a legal tender, the RBI had said in a statement.

Asked whether the public will face inconvenience due to this move, the eminent economist said many citizens probably have no Rs 2,000 notes since few transactions take place in those notes.

“ For those who do, inconvenience will not be beyond an extra trip to the bank. Even that can be avoided by exchanging Rs 2,000 notes when visiting the bank for some other transaction,” he said.

Asked is there is a need for Rs 1,000 currency notes, Panagariya said,”As of now, I do not see a need to issue Rs 1,000 notes as citizens have become used to transact in notes of Rs 500 or lower denomination.”

Explaining further, he pointed out that per capita income in the US in 2021 was USD 70,000 and its

India’s engineering exports to Russia jump 11 times in April: EEPC

KOLKATA, MAY 20

(PTI): Exports of engineering goods to Russia jumped 11 times in April this year to USD 133.6 million as compared to year-ago month while the US and China markets continued to soften, the engineering export promotion council said on Saturday.

Engineering exports to the CIS country were USD 11.7 million in April 2022.

The value of engineering exports to the US was USD 1.4 billion in April 2023, down 24.9 per cent compared to USD 1.86 billion in the year-ago month.

Shipments to China too continued with the declining trend and fell 15.5 per cent to USD 183.3 million in April 2023 as compared to USD 216.9 million in the same month last year.

However, exports to Oman more than doubled during the month to USD 153.9 million over the corresponding month of April 2022.

Out of 25 top destinations for Indian engineering goods, as many as 15 saw positive year-on-year growth during the month under review while 10 countries witnessed a regrowth.

The top 25 countries, including the US, Germany, the UK, France, Indonesia and Singapore, contribute about 76 per cent of the total engineering exports from India.

Engineering exports from India continued to decline in 2023-24 as April 2023 saw a 7.15 per cent drop to USD 8.99 billion as against USD 9.68 billion in April 2022. highest denomination note is USD 100. This gives ratio of per capita income to the highest denomination note at 700.

Drop in shipment to North America, the EU and ASEAN region led to a decline in overall engineering exports.

Commenting on the latest export data, EEPC India chairman Arun Kumar Garodia stated that the decline in exports was caused due to demand slowdown in almost all regions barring Latin America, WANA, parts of Europe and Oceania.

WANA region comprises 19 countries, including Bahrain, Kuwait, Oman, Qatar, Iraq, UAE, Saudi Arabia, Egypt, Sudan, Algeria, Morocco, Tunisia, Syria, Jordan, Israel, Lebanon, Yemen, Libya and South Sudan.

In India, per capita income in 2021 was approximately Rs. 1,70,000.

“For the same ratio of per capita income to the highest denomination note as in the US, our highest denomination note would have to be Rs 243. So, Rs 500 note as the highest denomination note would seem to be about right for us, given that we are still more of a cash economy than the US,” he said.

The RBI started printing Rs 2,000 notes in November 2016 after Prime Minister Narendra Modi scrapped high-value Rs 1,000 and Rs 500 notes overnight.

He opined that one lesson of November 2016 demonetization was that tracing black money is incredibly difficult.

NEW DELHI, MAY 20 (AGENCIES): Nissan Motor India (NMIPL) has unveiled the Magnite GEZA Special Edition, a new variant of its B-SUV. The special edition of the Magnite SUV will offer premium audio and infotainment experience to the buyers. The company claims that the special edition SUV has been inspired by Japanese theatre and its expressive musical themes, Business Today reported. The Magnite GEZA Special Edition bookings are now open. The special edition SUV’s pricing details will be be announced on May 26.

The Magnite GEZA Special Edition boasts a range of feature enhancements, including a 9-inch touchscreen, Android CarPlay with wireless connectivity, premium JBL speakers, a trajectory rear camera, ambient lighting with app-based controls, a shark fin antenna, and beige color seat upholstery.

Rakesh Srivastava, Managing Director of Nissan Motor India, expressed his excitement about the new offering, stating, “The Big, Bold, Beautiful Nissan Magnite is a game-changer with its unmatched value, high safety ranking, and low cost of maintenance.

We are introducing the Magnite GEZA Special Edition with best-in-class contemporary features that enhance the Magnite’s value proposition for discerning customers.”

The SUV had received a 4-star safety rating for adult occupant safety from Global NCAP. Nissan recently introduced additional safety features across all variants, including Electronic Stability Programme (ESP), Traction Control System (TCS), Hill Start Assist (HSA), and Tyre Pressure Monitoring System (TPMS).

Nissan Motor India’s contributions to exports from India have been recognized by the Chennai Office of the Chief Commissioner of Customs. The Nissan Magnite is currently exported to 15 global markets, with recent launches in Seychelles, Bangladesh, Uganda, and Brunei.

Sebi proposes to cut IPO listing timeline to 3 days

NEW DELHI, MAY 20

(PTI): Capital markets regulator Sebi proposed to reduce the time taken for the listing of shares on stock exchanges after the closure of initial public offerings (IPOs) to three days from six days at present. The proposed reduction in timelines for listing and trading of shares will benefit both issuers as well as investors.

“Issuers will have faster access to the capital raised thereby enhancing the ease of doing business and the investors will have opportunity for having early credit and liquidity of their investment”, Sebi said in its consultation paper. The markets regulator, in November 2018, introduced Unified Payment Interface (UPI) as an additional payment mechanism with Application Supported by Blocked Amount (ASBA) for retail investors and prescribed the timelines for listing within six days of closure of issue (T+6). ‘T’ is the day of closure of the issue.

CGHS beneficiaries to get cashless treatment at 6 AIIMS

NEW DELHI, MAY 20 (AGENCIES): SEBI has proposed that asset management companies (AMCs) should establish measures to prevent market abuse and fraudulent transactions.

The market regular also suggested that senior management of AMCs should be responsible for detecting and reporting any misconduct by employees, dealers, stock brokers, or related entities.

According to Mint report, SEBI emphasized on the need for AMCs to have a reporting system in place to address potential market abuse and fraudulent transactions.

This recommendation follows SEBI’s recent orders regarding front-running cases involving Axis AMC and Life Insurance Corporation of India (LIC).

SEBI has requested public feedback on these proposals until June 3. According to the draft paper, SEBI proposed that AMCs should implement effective surveillance systems and internal controls to prevent misconduct by employees and entities with access to information about fund management and investments.

AMCs are encouraged to customize their surveillance systems and control procedures based on historical data to ensure their effectiveness.

In addition to automated alerts, AMCs should consider softer indicators, such as lifestyle checks and monitoring communication channels like emails, chats, and CCTV footage, to identify potential misconduct.

NEW DELHI, MAY 20

(PTI): Cashless treatment will now be available to all CGHS beneficiaries at the premier All India Institutes of Medical Sciences in Bhopal, Bhubaneswar, Patna, Jodhpur, Raipur and Rishikesh, the Union Health Ministry said on Saturday.

The authorities have signed a memorandum of agreement with these six AIIMS to provide cashless treatment under the Central Government Health Scheme (CGHS). “Patient care facilities available at six fully functional AIIMS in Bhopal, Bhubaneswar, Patna, Jodhpur, Raipur and Rishikesh shall be extended to the CGHS beneficiaries on cashless basis. “It will be particularly beneficial for the senior citizens (retired pensioner beneficiaries of

CGHS) who find it difficult to submit individual reimbursement claims and follow up approvals,” the ministry said.

The CGHS beneficiaries will have the advantage of accessing state-of-the-art treatment facilities available in these AIIMS, without the hassle of first making payments and then seeking reimbursements from CGHS. This initiative will save time, reduce paperwork and also delays in settlement of individual claims, the ministry said. Till now, CGHS pensioner beneficiaries, availing treatment at AIIMS, are required to first make payment and claim reimbursement later from CGHS. According to the salient features of this initiative, the CGHS pensioners and other entitled categories of CGHS beneficiaries will be eligible for cashless treatment in OPD, investigations and indoor treatment at these six AIIMS.

These six AIIMS shall raise credit bills of pensioners and other categories of eligible beneficiaries to CGHS, which shall preferably make payment within 30 days of receipt of the bills. Admission of the beneficiary shall be made only against production of valid ID card for the treatment at AIIMS. Besides, AIIMS shall create a separate help desk and a separate accounting system for CGHS beneficiaries. Medicines prescribed by the doctors at AIIMS, for OPD treatment or at the time of discharge from AIIMS, will be collected by the beneficiaries through CGHS. Union Health Secretary Rajesh Bhushan lauded this development stating “CGHS is a significant service-oriented vertical of the Health Ministry through which existing and retired employees can avail medical services”.

Snippets

7.1-magnitude quake

jolts Loyalty Islands

SYDNEY, MAY 20

(IANS): An earthquake measuring 7.1 on the Richter scale jolted southeast of the Loyalty Islands Saturday -- just a day after a 7.7-magnitude temblor struck the region, the US Geological Survey (USGS) said. According to the latest update from the USGS, the epicentre, with a depth of 36 km, was determined to be at 23.062 degrees south latitude and 170.456 degrees east longitude, reports Xinhua news agency.

100 wildfires rage in Canadian province

OTTAWA, MAY 20

(IANS): Nearly 100 wildfires are currently raging in the Canadian province of Alberta, with experts saying that there were no signs of slowing down, the media reported. Since the first local state of emergency was declared on May 4, over 782,000 hectares of land have burned, the BBC quoted local officials as saying.

Thousands of firefighters and support staff from across Canada and the US are helping to douse the wildfires, with dozens of them going out of control. As of Friday, there were 93 active wildfires in Alberta, and experts have said that an end to the controlling the flames was no where in sight.

Clashes between tribal gunmen kill 8 in Yemen

ADEN (YEMEN), MAY 20 (IANS): Eight people were killed and at least 15 others wounded in clashes between tribal gunmen in Yemen’s northeastern oil-rich province of Marib, a government official said. Ferocious clashes erupted on Thursday night and continued into Friday morning between gunmen from the Al Munif and Al Fahih tribes in the Al Wadi district of Marib, the local government official said on condition of anonymity on Friday. The clashes were caused by a dispute over land ownership between the two tribes, the source said, adding a ceasefire began to take effect on Friday night, Xinhua news agency reported.

Congo security forces clash with protesters

KINSHASA, MAY 20 (AGENCIES): Democratic Republic of Congo security forces fired tear gas and fought running battles in the streets of the capital Kinshasa with anti-government protesters demonstrating on Saturday over alleged irregularities in voter registration. The protesters are also angry over the rising cost of living and the prolonged insecurity in the east of the country, where armed militias and rebel groups have been carrying out attacks that have killed hundreds and displaced over a million. Around a dozen protesters were detained by security forces just after the start of the demonstration, which was called for by opposition leaders.

Colombia plane crash:

Search for 4 missing kids

BOGOTÁ, MAY 20 (AP): Colombians were on edge Friday as authorities searched for four Indigenous children who were on a small plane that crashed in the Amazon jungle this month but have not been found. The three adults aboard died. The crash happened in the early hours of May 1 when the Cessna singleengine propeller plane with six passengers and a pilot declared an emergency due to an engine failure. The small aircraft fell off radar a short time later and a frantic search for survivors began.