ECONOMY by VIVEK SINGH

2021-09-28 07:50:40 There is a lot of confusion among students regarding the following three:

[Gold Monetization Scheme], [Sovereign Gold Bond] and [Gold ETF]

So, let me clarify.

The basic fact is India imports a lot of gold (second largest consumer of gold) as Indians are fond of Gold and Gold jewellery.

In Gold monetization scheme, we can deposit gold and gold jewellery which we already have with the authorized banks. So, the traders rather than importing raw gold from abroad (to make jewellery), will purchase this gold from the banks and melt it and will produce new jewellery/bars and will start selling again. This will REDUCE IMPORT of GOLD. When we want, we can get back our deposited gold but in bars form (not in jewellery form) or in cash and we will also earn interest.

Sovereign Gold Bond, is for those who are YET to purchase purchase gold for investment purchase. So, Govt. is saying do not purchase physical gold for investment purpose, rather purchase Sovereign Gold bonds. And whenever you would would want your money back you can sell the gold bonds and u will get money as per that days price PLUS u will also get interest (2.5%). So, Sovereign gold bonds gives u both price appreciation (or depreciation) and interest both but physical gold gives only price appreciation (or depreciation). So, when u replace the purchase of physical gold with Sovereign gold bond then the import of Gold will get reduced.

When you purchase Gold ETF, then its almost same as purchasing physical gold. When you purchase physical gold then you keep the physical gold but when you purchase Gold ETF then you just have the paper, but on your behalf the exchange purchases the physical gold and keeps it with itself. This removes any making charges and reduces the traders commission and removes security issues. When you will sell Gold ETF you will get price appreciation (or depreciation) but no interest. So, when you purchase Gold ETF then it will lead to import of gold. Open / Comment

2021-09-27 17:54:41 CSE 2020 Cut-Off Marks

Prelims Cut-Off for 2020 was just 92.51 marks Open / Comment

2021-09-27 07:36:33 Competition Commission of India (CCI), which is basically a 'Fair Trade Regulator' has been established by the Central Government as per the CCI Act 2002. CCI consists of a Chairperson and 6 Members appointed by the Central Government.

The Act prohibits anti-competitive agreements, abuse of dominant position by enterprises and regulates combinations (acquisition, acquiring of control and M&A), which causes or likely to cause an appreciable adverse effect on competition within India.

It is the duty of the Commission to eliminate practices having adverse effect on competition, promote and sustain competition, protect the interests of consumers and ensure freedom of trade in the markets of India. The Commission is also required to give opinion on competition issues on a reference received from a statutory authority established under any law and to undertake competition advocacy, create public awareness and impart training on competition issues.

If any merger/amalgamation/acquisition is happening and after the merger/amalgamation/acquisition the combined asset value is more than Rs. 1000 crore or Turnover (sales in a year) is more than Rs 3000 crore then they are required to take approval of Competition Commission of India (CCI) under the Competition Commission of India Act 2002. But Central Government may exempt PSUs in the interest of security of the State or public interest.

CCI can Suo moto take up an issue if it feels there are irregularities in trade/competition. Open / Comment

2021-09-27 07:07:59 Source: Indian Express
Just have a look, no need to go in detail. Open / Comment

2021-09-26 09:29:39 Term of the day:

Safe Harbour: It is a provision in law or regulation that affords protection from liability or penalty or reduces liability if certain conditions are met.

Safer Harbour (in the context of Transfer Pricing): is defined as circumstances in which the tax authority shall accept the transfer price declared by the taxpayer to be at arm's length.

Actually, Transfer Pricing is the price at which different entities/companies (belonging to one parent company) operating in different countries transact among each other. This transaction should be at market rate which is called 'arms length principle'. Open / Comment

2021-09-26 08:28:25 The above is news from Indian Express: Some relevant points.

1) Finance Ministry is nudging States to digitize their land records. States like Karnataka, Rajasthan, Madhya Pradesh, Uttar Pradesh, Kerala, Andhra Pradesh, Telangana and Gujarat have digitized their land records.

2) This will help in creating Online "Mortgage Charge" on the Land which will help in better credit/loan delivery and it will also help in reducing loan frauds as now only those people will be able to take agriculture loan who are real farmers and own land.

3) Creating "Mortgage Charge" means transfer of interest in the ownership of a property/land for the purpose of securing repayment of any debt.

4) Now since land records will be digitized, so all this process will happen online. For example, earlier if a farmer wants loan then he needs to provide his land records in the physical form and then banks need to authenticate this land paper (where there were chances of fraud) and required a lot of documents to be signed and then provide the loan. But now all this will happen online very fast with digitized land records. Open / Comment

2021-09-26 08:14:21 Open / Comment

2021-09-25 09:57:09 Good Morning to all of you. Heartiest congratulations to all those who made in the final list. Those who were not able to make it this time, I would just say "Don't give up".

All those selected, if they want can share their All India Rank (AIR) with Name here.
It will motivate other students following this channel.
Please do not put any other comment. Its a request to all of you otherwise the application will hang Open / Comment

2021-09-24 16:01:08 UPSC CSE 2020 Final Result.pdf Open / Comment

2021-09-24 08:09:52 'Attention Economy': Just read once Open / Comment