ISSUE: 382 2023 23 Nov 2023

G20 VIRTUAL SUMMIT. Modi

proposes global social impact fund
to spread DPIs in Global South:
Prime Minister Narendra Modi on
Wednesday proposed the creation of a
Social Impact Fund to help implement
Digital Public Infrastructure (DPI) in
Global South countries. Delivering the
opening remarks at the Virtual G20 Leaders Summit, Modi also
announced that India will contribute initial capital of $25 million to the
Social Impact Fund that is being put together and expressed hope that the
others in the grouping would join this initiative. Modi also announced
that the DPI repository, which the recent Delhi G20 Leaders Summit had
decided to establish, is now ready and 16 countries with over 50 DPIs are
now on board this initiative.
(Business Line)
Govt tweaks gold import policy to bolster yellow metal trade
with UAE: The Centre has amended the gold import policy condition to
give further fillip to the gold trade between India and UAE. The
Directorate General of Foreign Trade (DGFT) has now allowed gold to be
imported through India International Bullion Exchange IFSC Ltd (IIBX)
at a concessional import duty rate under the tariff rate quota (TRQ)
provisions of India-UAE Comprehensive Economic Partnership
Agreement (CEPA), which came into effect from May 2022.“Valid India-
UAE TRQ holders, as notified by IFSCA, can import gold through IIBX
against the TRQ and can obtain physical delivery of the same through
IFSCA registered vaults located in SEZs as per the guidelines prescribed
by the IFSCA,” the DGFT said in a notification.
(Business Line)
Pakistan applies for BRICS membership; seeks Russia's
support: Pakistan has applied for membership in the BRICS grouping
and sought Russia's support, the country's envoy to Moscow Muhammad
Khalid Jamali has said. Pakistan has filed an application to join the
BRICS group of nations in 2024 and is counting on Russia's assistance
during the membership process.
(Business Line)

Banking system liquidity deficit rises

to 5-year high on tax outflows: The
liquidity deficit in the banking system rose
to a five-year high on November 22 after
heavy outflows on account of GST and
weekly bond auctions, experts said.
According to the RBI data, liquidity in the
banking system stood at a deficit of around
Rs 1.74 lakh cr compared to a deficit of Rs
1.05 lakh cr on the previous day.
(Moneycontrol)
Demat accounts on CDSL cross 10-crore mark: Central Depository
Services on November 22 said the number of demat accounts on its
platform has crossed the 10-crore mark. Central Depository Services
(India) Ltd, or CDSL, began operations in 1999 and facilitates holding
and transacting in securities in the electronic form and settlement of
trades on stock exchanges.
(Moneycontrol)
Credit growth to moderate, lending rates likely to go up: SBI
Chairman: RBI’s measure to increase risk weights on unsecured
consumer loans by 25 percentage points is expected to lead to some
moderation in credit growth and eventually a rise in lending rates as
banks’ capital requirements rise, State Bank of India Chairman Dinesh
Kumar Khara said.
(Business Line)
Lenders facing known and unknown challenges, need agile
responses: Bank chiefs: isks emerging from the misuse of technology,
challenges to transition to financing sectors that are fighting climate
change and increasing geopolitical complexities are the three main
worries dominating banking today, CEOs at top lenders said. The
solutions in some cases require regulatory intervention to ensure the risks
do not turn systemic, they said at the FICCI-IBA banking conference. SBI
chairman Dinesh Khara said it is clear that the climate risk is going to be
much more pronounced and significant in the years ahead, but banks are
facing challenges in funding green projects. "Multilateral agencies are
unable to honour their commitments in green financing due to the
situation they are facing in their home countries. In this situation, banks
will have to step in. It will be good if regulations include some incentives
like CRR cuts for raising green funds or risk weight reliefs for green
financing," Khara said. HSBC India CEO Hitendra Dave said though
technology has made banking easier, the risks are sometimes unknown.
He cited the example of the ransomware attack on the world's largest
lender by assets Industrial and Commercial Bank of China (ICBC) earlier
this month which forced the bank to re-route trades using spreadsheets
stored on portable drives and accessing the internet using dongles.
(Economic Times)
Income-tax commissioner confirms
Rs 1,666-crore tax demand on
IndiGo; airline to contest order: The
Commissioner of Income Tax-Appeals has
confirmed tax demand totalling around Rs
1,666 crore on Interglobe Aviation, the
parent company of IndiGo airlines, the
carrier said in a notice to the stock
exchanges on November 22. The low-frills
carrier plans to contest the order by the Commissioner of Income Tax —
Appeals seeking Rs 740 crore recovery for assessment year (AY)2016-17
and Rs 927 crore recovery for AY2017-18. The airline alleged that it was
not granted an opportunity for a personal hearing by the commissioner.
(Moneycontrol)
Amazon will now use rivers and backwaters to ship packages:
The Inland Waterways Authority of India (IWAI) is pushing for e-
commerce cargo movement via the country’s 14,500 km-odd river
systems and backwaters. In a first, the IWAI has signed an MoU with
Amazon to explore cargo movement and transport of customer shipments
and products via the inland waterways using river Ganges (the National
Waterway 1). A pilot will soon be initiated between Patna and Kolkata
with support from the waterways authority and its carriers.
(Business Line)

‘AGNI’ Initiative to Promote Innovations

by Ayurveda Practitioners: Central Council
for Research in Ayurveda Sciences (CCRAS),
Ministry of Ayush, in its new endeavour to
promote research for mainstreaming the
pragmatic Ayurveda practices through scientific
validation and evidence-based appraisal, has
launched “Ayurveda Gyan Naipunya Initiative”
(AGNI) for physicians practicing in the field of Ayurveda. CCRAS will
document and publish the reported medical practices and therapeutic
regimens for education and academic purposes in consultation with
NCISM. Further research studies may be taken up by CCRAS on the
reported medical practices for mainstreaming and scientific validation by
developing research proposals in collaboration with Ayurveda
Practitioners and other relevant institutes/ organizations.
(PiB)

RBI KEY RATES FOREX EQUITY

(RBI REF. ) /COMM. MARKET
Repo Rate: 6.50% INR / 1 USD : 83.3375 Sensex: 66023.24 (+92.47)
SDF: 6.25% INR / 1 GBP : 104.3241 NIFTY: 19811.80 (+28.40)
MSF /Bank Rate: 6.75% INR / 1 EUR : 90.8451 Bnk NIFTY: 43449.60 (-239.60)
CRR: 4.50% INR /100 JPY: 55.9500 Gold: 61,018.00 (-6.00)
SLR: 18.00% Silver: 72,781.00 (-45.00)
BUSINESS/FINANCIAL CONCEPTS
AD-VALOREM TAX
 An ad valorem tax is a tax based on the assessed value of an item, such
as real estate or personal property. The most common ad valorem taxes
are property taxes levied on real estate. However, ad valorem taxes may
also extend to a number of tax applications, such as import duty taxes
on goods from abroad.
 All ad valorem taxes are levied based on the determined value of the
item being taxed. In the most common application of ad valorem taxes,
which are municipal property taxes, the real estate of property owners
is periodically assessed by a public tax assessor to determine its current
value. The assessed value of the property is used to compute a tax
annually levied on the property owner by a municipality or other
government entity.
 Ad valorem property taxes are typically a major, if not the primary,
revenue source for both state and municipal governments, and
municipal property ad valorem taxes are commonly referred to as
simply "property taxes."

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