Indian Economic Updates : One State - One RRB, Bharat Atta and Rice
IBBI: eB-Kray Platform Global corporations Growth
1. One State, One RRB: Government Moves to Streamline Regional Rural Banks
The government plans a fourth phase of regional rural bank (RRB) consolidation, aiming to reduce the number from 43 to 28 by implementing a "one state-one RRB" model. In collaboration with the National Bank for Agricultural & Rural Development (Nabard), this restructuring aims to enhance scale, efficiency, and cost-effectiveness. Since the first consolidation phase in 2004-05, RRBs have reduced from 196 to 43, benefiting from lower overheads, optimized technology, a stronger capital base, and expanded reach.
2. Govt Intervenes to Tackle Food Inflation with Subsidized Bharat Atta and Rice
The government launched phase two of the subsidized Bharat brand atta and rice program, raising prices to ₹30/kg for atta (from ₹27.5/kg) and ₹34/kg for rice (from ₹29/kg) to counter rising food inflation. This temporary intervention aims to stabilize staple prices amid growing inflation, with the allocation of 369,947 metric tonnes of wheat and 291,738 metric tonnes of rice. In phase one, from October 2023 to June 2024, 1.52 million tonnes of atta and 1.46 million tonnes of rice were distributed.
3. IBBI Launches eB-Kray Platform to Enhance Stressed Asset Recovery
The Insolvency and Bankruptcy Board of India (IBBI) has announced a centralized electronic platform for auctioning stressed assets under liquidation, operated by a consortium of state-run banks. This initiative aims to enhance recovery for creditors by listing assets on the eB-Kray platform, which has previously facilitated auctions for mortgaged assets under the SARFAESI Act.
4. Global Firms Leverage India for GCC Growth and Cost Savings
Global corporations from various sectors, including quick service restaurants, airlines, hospitality, and agriculture, are establishing support service centers in India, fueling growth in global capability centers (GCC). Companies like Yum Brands, Starbucks, Warner Bros, Discovery, Marriott International, and Chevron are exploring tier II cities alongside major hubs like Bengaluru and Hyderabad, attracted by skilled talent and lower operational costs. In FY 2024, India saw the establishment of 1,700 GCCs, generating $64.6 billion in export revenue and employing over 1.9 million people.
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