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March 18th Business & Economy Current Affairs

RBI will Introduce Rs. 10 Plastic Notes in Five Different Cities

The Reserve Bank of India will introduce plastic notes of Rs. 10 denominations in first five cities with varied climate and geographical conditions. The notes are clean, will last longer than cotton substrate-based notes. Plastic currency cannot be replicated easily. The RBI received approval from the Finance Ministry for procurement of plastic material required for the printing.

Background:

The central banks across the world have been exploring ways to increase the durability of paper currency. The UPA Government has proposed introduction of Rs. 10 plastic notes worth one billion. Five cities Kochi, Mysuru, Jaipur, Shimla and Bhubaneswar were selected initially for introducing plastic currency.

Usage of Plastic Currency in the world

Many countries have started using plastic currency to reduce the issues relating to counterfeiting and for the betterment of environment.

  • Australia is the first country to use plastic currency, it issued them in 1988.
  • Over countries are using polymer currency which include Australia, Fiji, Canada, New Zealand, Mauritius, Papua New Guinea, Romania, Vietnam and Britain.
  • The Bank of Canada report 2011, reveals that polymer notes reduce global warming by 30 percent and minimizes energy demand compared to conventional paper notes.

Easy exit policy for Start-ups in India

Emulating the global standards, the Department of Industrial Policy and Promotion (DIPP) has planned to introduce easy wind up processfor the start-ups in India. In this regard DIPP has written to the Ministry of Corporate Affairs to notify the Start-ups as Fast Track firms. These firms will be companies with simple debt structures. This enables start-ups to wind up business in just 90 days.

Department of Industrial Policy and Promotion (DIPP)

It is the nodal agency for the Start-up Indian initiative of India. The Ministry of Corporate Affairs looks after winding up notifications in the country. The reforms were suggested in the ‘Bharat Navodaya: Start-Up India Reform Report’. This report was prepared by N.R. Narayana Murthy (InfosysFounder). He chaired the Alternative Investment Policy Advisory Committee (AIPAC)

The Report was prepared by the Infosys founder N.R. Narayana Murthy-chaired Alternative Investment Policy Advisory Committee (AIPAC) after a request invitation from market regulator Securities and Exchange Board of India.

Importance of this Move:

  • The Start-ups in the United Kingdom is easy, process can be initiated by download a form and calling for a shareholders meet.
  • In Singapore, exit process begins by an online application from the director or Company Secretary or director.
  • The exit process in economic zones of United Arab Emirates is more easy, winding down completed within three days.
  • Most economic zones in UAE allow for winding down of the business in two to three days.

The Procedure for Winding is Complex in India

  • The exit process is cumbersome and start-ups and venture capitalists have expressed concerns as it adds operational costs and wastage of valuable human capital.
  • The long process involves cost and much paper work in the closure. Many companies remain inactive, but still they file tax returns and prepare annual reports every year.

Bombay Stock Change collaborates with Sentifi

Bombay Stock Exchange has collaborated with Sentifi for updates on analysis. Sentifi is a Switzerland based company, a global leader in algorithmic analysis, social updates of over 40 ,000 globally listed companies. Sentifi analyses the stocks content present on the social media platforms. It tracks over 60 lakh persons updates present in the vast internet medium.

Goods and Services Tax

During its 12th Goods and Services Tax (GST) Council meet has approved has approved draft Bills for instigating the goods and services tax (GST) in the Union Territories (UTs) and States. The Council was chaired by Finance Minister Arun Jaitely. The Council previously has approved three Good Services Taxes bills pertaining the compensation to be paid to States for loss of revenue, to central GST and integrated GST.

The approval of this bills allow Centre and State Governments to test the Goods and Services Tax regime from July 1, 2017. The Council has approved the ceiling rates of taxes up to 28 percent. The tax ceiling on different products are up to 5%, 12%, 18% and 28% as per the Goods and Service taxes. For luxury goods the tax ceiling may go up to 28%, there is separate slab on tobacco products, cigarettes. Beedis are out of the GST ceiling.

The products produced in the Special Economic Zones will be taxed similar to that of exports. Whereas procurements through supplies are not taxed in the GST regime. Goods and Services tax is the indirect taxation system applicable throughout the nation. For indirect taxation the constitution amendment was required and it was approved, according to the One Hundred and First Amendment) Act, 2016. Taxation will be based on consumption of Goods and Services, input tax credit method is used for taxing on sales and purchases.

Common Labor Code to for Employees in India

The Union Labour Ministry has planned common code to entire workforce in India. It provides social security to the employees including agriculture and self-employed people. The draft code ensures social security to 45 crore workers in India. The code applies to the people working in both organized and unorganized sectors. The establishments employing single worker will have to fund social security benefits. It covers house-holds, plantation, Shop, mining industry, Charitable organizations, domestic and home-based workers.

If the companies failing to contribute are liable for pay compensation. National Social Security Council (NSSC) will streamline the policies related to social security schemes. The Prime Minister is the chairman of NSSC, Union Finance Minister, Labour Minister, Health and Family Welfare Minister are the representatives. NSSC will observe the implementation of social security schemes and manages the funds.

Highlights of Maharashtra Budget

Maharashtra Government has presented the budget on March, 18 2017. It is the third budget of the BJP Government under the Chief Ministership of DevendraFadnavis.

Key Highlights of the budget

  • Fifty five thousand houses will be constructed for SC, ST under the Ramai Awas Yojana. Rs. 500 crores will be allocated for this scheme.
  • Memorial for Bal Thackeray and Ambedkar memorial in Indu Mill. Rs. 200 crores will be allocated for the same.
  • A newly announced separate ministry for OBC will be alloted with Rs 2,384 crore funds.
  • Rs.710 crore have been granted for transport system and metro rail project in the city.
  • The budget has been farm centric and numerous benefit schemes have been announced for agriculture sector to increase the income levels of the farmers.

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