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Govt invoked Section 7 of RBI Act after Allahabad HC orders: Source

Agencies
November 28, 2018

New Delhi, Nov 28: The central government's decision to invoke Section 7 of the Reserve Bank of India (RBI) Act was taken in compliance with directions from the Allahabad High Court, a source confirmed.

The source close to the matter told ANI that it was the Allahabad High Court which directed the Finance Ministry to invoke Section 7 on August 27, 2018. This comes after Governor Urjit Patel did not directly answer questions on Section 7 and said he will file a written response regarding it and other controversial issues, including demonitisation, within 15 days during his meeting with the Parliamentary Standing Committee on Tuesday.

The source, under the condition of anonymity, said that the government had never contemplated invoking the section and were only complying with the court orders delivered in the case of Independent Power Producers Association of India V/S Union of India and five others.

According to Section 7(1) in The Reserve Bank of India Act, 1934, "The Central Government may, from time to time, give such directions to the RBI as it may after consultation with the Governor of the Bank consider necessary in the public interest."

The Allahabad HC bench, headed by Chief Justice Dilip B Bhosale and Justice Yashwant Varma, had directed the Finance Ministry to consider initiation of the consultative process, contemplated under Section 7 of RBI Act, and conclude it within 15 days.

The source clarified that the section was invoked for the first time in the matter involving the Independent Power Producers, who, by virtue of their accumulated debts, fell under the regulations of the Insolvency and Bankruptcy Code (IBC).

The source further stated that the Allahabad HC orders paved a way for the government to invoke Section 7 in future public issue. The second time Section 7 was invoked was on October 10 when the government sought the RBI Governor's views on surplus reserves. The section was invoked for a third time to relax the Prompt Corrective Action (PCA) framework for the 13 state-run banks.

Surplus reserves and relaxing of PCA norms were discussed in the RBI Board meeting held on November 19. In a press statement released after the meeting, the RBI said that its Central Board discussed the Basel regulatory capital framework, a restructuring scheme for stressed MSMEs, bank health under Prompt Corrective Action (PCA) framework and the Economic Capital Framework (ECF) of RBI.

The Board decided to constitute an expert committee to examine the ECF, the membership and terms of reference, which will be jointly determined by the central government and the RBI. With regard to banks under PCA, it was decided that the matter will be examined by the Board for Financial Supervision of RBI.

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News Network
April 3,2020

New Delhi, April 3: The Government on Thursday launched a mobile app developed in public-private partnership as part of efforts to contain the spread of coronavirus.

"The app, called 'AarogyaSetu' will enable people to assess themselves the risk for their catching the coronavirus infection," an official release said.

It said that the app will calculate this based on their interaction with others, using cutting edge Bluetooth technology, algorithms and artificial intelligence.

"Once installed in a smartphone through an easy and user-friendly process, the app detects other devices with AarogyaSetu installed that come in the proximity of that phone. The app can then calculate the risk of infection based on sophisticated parameters," the release said.

It said that the app will help the government take necessary timely steps for assessing risk of spread of COVID-19 infection and ensuring isolation where required.

"The app's design ensures privacy. The personal data collected by the app is encrypted using state-of-the-art technology and stays secure on the phone till it is needed for facilitating medical intervention," the release said.

It said the app is available in 11 languages and has highly scalable architecture.

"This app is a unique example of the nation's young talent coming together and pooling resources and efforts to respond to a global crisis. It is at once a bridge between public and private sectors, digital technology and health services delivery," the release said.

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News Network
January 27,2020

New Delhi, Jan 27: Remember the story of two friends coming face-to-face with a bear in a forest? One of the two friends climbs the tree to save his life and the other, not knowing how to, lays on the ground, breathless, pretending to be dead.

Well, that lesson turned out to be useful for this man who pretended to be dead when a tiger had both his paws on the man's chest.

Yes, that is right. IFS officer Parveen Kaswan recently shared a video of a man lying under a tiger, with their faces extremely close to each other with the caption, "You want to see how does a narrow escape looks like in case of an encounter with a #tiger. #Tiger was cornered by the crowd. But fortunately, the end was fine for both man and tiger. Sent by a senior."

Another Twitter user shared the full 30-second video in the comments. He also said that the incident occured in Tumsar in Bhandara district, Maharashtra. The spine-chilling clip shows a tiger running freely in the fields trying to avoid people who have surrounded him and are trying to shoo him away.

In his quest to run away, the scared tiger grabs a human. When he sees that people are still approaching him and trying to scare him away, he gets up and runs away for his life. All this while, the man who was captured by the animal lays still on the ground and does not make an attempt to get free.

This is what stuck with Twitter and they are praising the man for his presence of mind.

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Agencies
July 30,2020

New Delhi, Jul 30: India's gold demand in 2020 is expected to fall to the lowest level in 26 years with domestic bullion prices hitting a record high and as falling disposable incomes could curtail retail purchases, the World Gold Council (WGC) said on Thursday.

Lower demand by the world's second-biggest bullion consumer could limit a rally in global prices, which hit a record high earlier this month, although it could also reduce India's trade deficit and support the ailing rupee.

"Fast rising gold prices could act as headwinds," said Somasundaram PR, the managing director of WGC's Indian operations.

Local gold futures have jumped 35% so far this year after rising a quarter in 2019.

India's gold consumption in the first half of 2020 plunged 56% on-year to 165.6 tonnes. Meanwhile, the coronavirus-triggered lockdown also slashed demand by 70% in the June quarter to 63.7 tonnes, the lowest in more than a decade, the WGC said in a report published on Thursday.

Millions of Indians have lost their jobs or taken a pay cut after the country imposed a lockdown on its 1.3 billion people to curb the spread of the virus that has infected more than 1.5 million Indians.

Consumption is generally high during the June quarter due to weddings and key festivals such as Akshaya Tritiya, but lockdown restrictions kept shoppers indoors this year.

The weak demand in the first half could drag down India's gold consumption in 2020 to the lowest since 1994, when demand stood at 415 tonnes, Somasundaram said, adding that it is still difficult to provide an estimate for full-year demand as the coronavirus crisis is still unfolding.

"Indian demand has previously jumped as much as 300 tonnes in a quarter. Latent demand could come out in the second half," Somasundaram said.

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