Money Makeover: Rs 2,000 Notes Withdrawn, but They Refuse to Leave the Party!

Friday, June 9^th 2023

Good Morning ☕

RBI Governor Shaktikanta Das wants to reassure everyone that the Rs 2,000 notes are like introverted party-goers—they may be withdrawn, but they're still valid and can't be declined by shops. So, if you're hoarding these elusive notes, no need to panic or rush to the exchange window like they're going out of style. Just take your time, exchange up to 10 notes at once, and enjoy the quirky journey of transitioning to different denominations while the banking system does a dance with the remaining 50% of those mysterious Rs 2,000 bills.

1. Home loan EMIs won't go up as RBI pauses rate hike

The Reserve Bank of India (RBI) has kept the repo rate unchanged at 6.50% in its April 2023 monetary policy meeting, providing some relief to home loan borrowers who have been burdened by increasing EMIs since last year. The default option for banks is to increase the tenure of a loan in a way that the EMIs remain unchanged, but the number of years for payment increases. However, borrowers can explore several options to reduce their EMI burden, such as choosing a fixed-rate loan, making prepayments, and opting for a balance transfer.

2. "No Need To Worry": RBI Governor Tackles Questions On ₹ 2,000 Notes

RBI Governor Shaktikanta Das has assured the public that there is no need to panic or rush when exchanging Rs 2,000 notes, which have been withdrawn as part of the RBI's currency management. The exchange or deposit window is available until September 30, 2023, and a maximum of 10 currency notes can be exchanged at a time. Das emphasized that these notes are valid and that shops cannot decline them. He also said that there is more than adequate stock of other denominations in the system. As of June 8, 2023, 50% of Rs 2,000 banknotes have been returned to the banking system.

3. IBBI proposes revamp of voting on bids for bankrupt companies

The Insolvency and Bankruptcy Board of India (IBBI) has proposed a revamp of the voting process for bankrupt companies. The proposal suggests that the Committee of Creditors (CoC) should vote simultaneously on two or more resolution plans. The plan that receives the highest affirmative votes, subject to receiving the requisite 66%, may be regarded as approved by the CoC. The proposal aims to increase transparency and efficiency in the voting process. The IBBI has invited comments on the proposal from stakeholders by July 31, 2023

4. Centre issues allocation orders to successful bidders of 22 coal blocks

The Indian government has issued allocation orders to successful bidders for 22 coal mines that were put on sale for commercial mining. The coal mines have a cumulative peak rated capacity of 22. The Nominated Authority, Ministry of Coal, has so far allocated 127 coal mines under the provisions of the Coal Mines (Special Provisions) Act, 2015 and the Mines & Minerals (Development and Regulation) Act, 1957.

5. Delhi's IGI Airport introduces app free 'DigiYatra' for passengers

Passengers travelling through Delhi's Indira Gandhi International (IGI) Airport can now use the 'DigiYatra' facility without downloading the mobile application. The facility was launched on December 1, 2022, and aims to allow passengers to spend more time with their family and friends at the airport. The CEO of Delhi International Airport Limited, Videh Kumar Jaipuriar, said that the latest initiative will allow even those who are less familiar with technology to make full use of DigiYatra and travel seamlessly. The new offering will be in addition to the existing DigiYatra mobile application which allows travellers to register themselves on DigiYatra mobile application on their handheld mobile device.

6. Rupay prepaid forex cards now permitted for issuance by banks, says RBI Governor

The Reserve Bank of India (RBI) has permitted banks to issue RuPay prepaid forex cards for Indians traveling abroad. This decision comes in view of RuPay debit and credit cards issued by banks in India gaining international acceptance through bilateral arrangements with international partners and co-badging arrangements with international card schemes. Further, RuPay debit, credit, and prepaid cards will be enabled for issuance in foreign jurisdictions, which can be used internationally, including in India. RBI Governor Shaktikanta Das announced this decision while unveiling the second bi-monthly monetary policy of this fiscal.

7. Delhi, NCR get new rules for diesel generator sets usage to curb air pollution

The Commission for Air Quality Management (CAQM) has imposed restrictions under stage-2 of the Graded Response Action Plan (GRAP) in Delhi-NCR due to the deteriorating air quality. The restrictions include a ban on the use of diesel generator sets. The noise limit for diesel generator sets manufactured on or after January 2005 has also been set. The move comes after the AQI in Delhi-NCR reached 270 in the 'poor' category. The CAQM had earlier revoked restrictions under stage-2 of GRAP, which had been in place since October 19, 2022.

8. McDonald’s India partners with Simpl for online payment solutions

McDonald's India has partnered with Simpl to offer online payment solutions. The fast-food chain is planning to open 40-45 new restaurants in the fiscal year 2024 and aims to establish 580-630 additional restaurants by 2027. Meanwhile, the Reserve Bank of India has permitted banks to issue RuPay prepaid forex cards for Indians travelling abroad. The cards can be used at ATMs, PoS machines, and online merchants overseas. RuPay Debit, Credit, and Prepaid Cards will also be enabled for issuance in foreign jurisdictions, which can be used internationally, including in India.

9. RBI Monetary Policy: Shaktikanta Das assures to keep 'close vigil' on inflation

The Reserve Bank of India (RBI) has kept the repo rate unchanged at 6.5% in its monetary policy meeting on June 8, 2023. The RBI has retained the GDP growth forecast at 6.5% for FY2024 and estimated average inflation to be slightly above 5% for the same period. The RBI Governor, Shaktikanta Das, has stated that inflation still remains above the 4% target and that the risks to CPI inflation persist. The exchange or deposit window for the withdrawal of ₹2,000 denomination banknotes is available until September 30, 2023, and the RBI has given four months for exchanging or depositing the notes to ensure that there is no hardship faced by anyone.

10. OpenAI CEO Sam Altman meets PM Modi

Sam Altman, CEO of OpenAI, visited India on June 7, 2023, and met with Prime Minister Narendra Modi. Altman expressed his admiration for India's widespread acceptance and enthusiasm towards ChatGPT, an AI chatbot developed by OpenAI. He also met with India's G20 Sherpa Amitabh Kant to discuss the potential of generative artificial intelligence and how emerging economies can leverage GenerativeAI to improve the quality of life. Altman said that the advanced GPT 5 model is not in training and that ChatGPT has been truly embraced by India, with a lot of early adoption and enthusiasm from users.

11. RBI Monetary Policy: Governor Shaktikanta Das projects 5.1% inflation for FY24

The Reserve Bank of India (RBI) has announced that it will not hike its lending rates, contrary to what market watchers and economists were expecting. The central bank has also projected faster growth as well as softer inflation for this fiscal. The RBI governor's speech on Thursday highlighted the following points; the repo rate will remain unchanged at 6.5 percent; the MPC decided to keep the rate unchanged to assess the progress made so far while closely monitoring the inflation outlook; and the RBI will continue its stance of withdrawing accommodation.

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