RBI grade b study material

Arth Vol 29

Coverage – October 2020

RBI excludes six PSBs from Second Schedule of RBI Act; cites merger –

  • RBI excluded six public sector banks, Syndicate bank, Oriental bank of Commerce, United Bank of India, Andhra Bank, Corporation Bank and Allahabad Bank from the second schedule of the RBI Act following merger with other banks
  • A bank mentioned in the second schedule of RBI Act is known as ‘Schedule commercial bank’
  • These six banks merged with other public sector banks (PSBs) with effect from April 1, 2020.
  • OBC and United Bank of India merged into Punjab National Bank; Syndicate Bank into Canara Bank; Andhra Bank and Corporation Bank into Union Bank of India; and Allahabad Bank into Indian Bank. After the consolidation, there are now seven large PSBs, and five smaller ones.

Centre sticks to borrowing goal –

  • The government will stick to the ₹12 trillion borrowing plan it had set in May.
  • Borrowing for the second half would be ₹4.34 trillion, or 36.16% of the ₹12 trillion to be borrowed for the whole year.
  • In the April-August period, the fiscal deficit of the Centre scaled ₹8.7 trillion, or 109.3% of the full-year target, as tax collections remained under pressure.

Manufacturing PMI at over 8-year high in September –

  • Manufacturing PMI in September 2020 reached its highest mark since January 2012.
  • The manufacturing PMI increased from 52 in August to 56.8 in September.
  • Overall, the manufacturing PMI in the second quarter of the current fiscal year showed significant improvement over the first quarter. The manufacturing PMI was 35.1 in Q1, which shot up to 51.6 in Q2.
  • The services PMI for September at 49.8 remained in contraction but has risen from 41.8 in August.
  • About PMI – Purchasing managers’ indexes (PMI) are economic indicators derived from monthly surveys of private sector companies.
    • The three principal producers of PMIs are the Institute for Supply Management (ISM), which originated the manufacturing and non-manufacturing metrics produced for the United States, the Singapore Institute of Purchasing and Materials Management (SIPMM), which produces the Singapore PMI, and the Markit Group, which produces metrics based on ISM’s work for over 30 countries worldwide.
    • The IHS Markit India Manufacturing Purchasing Managers’ Index measures the performance of the manufacturing sector and is derived from a survey of 500 manufacturing companies. The Manufacturing Purchasing Managers Index is based on five individual indexes with the following weights: New Orders (30 percent), Output (25 percent), Employment (20 percent), Suppliers’ Delivery Times (15 percent) and Stock of Items Purchased (10 percent), with the Delivery Times index inverted so that it moves in a comparable direction. A reading above 50 indicates an expansion of the manufacturing sector compared to the previous month; below 50 represents a contraction; while 50 indicates no change.

Gold monetisation: No question likely on up to 100 gram deposits –

  • People depositing gold in banks up to a limit of about 100 grams each under a monetisation scheme won’t be asked any question by the tax offcials.
  • Deposits made under the gold monetisation scheme (GMS) won’t be subject to any GST, capital gains and wealth taxes. Interest earned on such deposits will be exempted from the income tax as well, according to the proposed amendments.
  •  The annual interest rate on gold parked with banks under existing GMS is up to 2.5%.
  • The Centre had launched the gold schemes (monetisation, bonds and sovereign coins) in 2015 to reduce the reliance on the import of the precious metal and curb its debilitating impact on current account deficit. The government wants to wean away investors from the purchases of the physical metal to “paper gold”.
  • Indian households, together the world’s largest hoarders of gold, are estimated to have piled up a record 24,000-25,000 tonne of the precious metal, worth over $1.3 trillion.

Centre in Supreme Court agrees to waive compound interest on loans up to Rs 2 crore for six-months –

  • In a relief to individual borrowers and medium and small industries, the Centre has agreed in the Supreme Court to waive compound interest (interest on interest) charged on loans of up to Rs 2 crores for a six-month moratorium period announced due to the COVID-19 pandemic.
  • The relief on waiver of compound interest during the six-month moratorium period shall be limited to MSME loans and personal loans of up to Rs 2 crore. Any individual/entity whose loan amount is more than Rs 2 crore will not be eligible for waiver of the compounding of interest.
  • The word “moratorium” is categorically defined by the RBI while issuing various circulars which show that “moratorium” means “deferment of interest” and not “waiver of interest”.

Real-time transactions double in one year; India secures top position in world –

  • Digital payments in India double in a year and the country maintains its position as a world leader in real-time financial transactions in the current year .
  • The volume of real-time transactions doubled this year, the value of transactions grew by 80 percent, a report by FIS.
  • Pradhan Mantri Jan Dhan Yojana (PMJDY) was launched in August 2014 as a national mission for financial inclusion. PMJDY, along with Aadhaar card and a major push for digital and real-time payments is continuing to play a vital role in promoting financial Inclusion.

M Rajeshwar Rao appointed as Deputy Governor of RBI –

  • The government on Wednesday appointed RBI’s senior-most executive director M Rajeshwar Rao as the deputy governor of the central bank. He was appointed to the post vacated by N Vishwanathan.
  • According to the RBI Act, 1934, the central bank needs to have four deputy governors — two from within the ranks, one commercial banker and another an economist to head the monetary policy department.
  • Current Deputy Governors are B P Kanungo, M K Jain, M D Patra and M Rajeshwara Rao.

India’s GDP expected to contract by 9.6 per cent this fiscal: World Bank

  • The World Bank said that India’s GDP is expected to contract by 9.6 per cent this fiscal which is reflective of the national lockdown due to the COVID-19 pandemic.
  • On the other hand it expects GDP to bounce back by 5.4% in FY2022. The rebound is projected assuming the restrictions are removed.
  • The report also suggest that the fiscal deficit to rise above 12% in FY21 and public debt to remain around 94%.
  • In its latest South Asia Economic Focus report, the World bank said that the spread of the coronavirus and containment measures have severely disrupted supply and demand conditions in India.

RBI MPC Highlights –

  • RBI kept the repo rate unchanged at 4% with an accommodative stance in the latest monetary policy committee meeting.
  • For the year 2020-21 as a whole, real GDP is expected to decline by 9.5%, with risks tilted to the downside.
  • GDP growth for April-June quarter 2021-22 fiscal projected at 20.6%.
  • CPI inflation is projected at 6.8 per cent for Q2:2020-21, at 5.4-4.5% for H2:2020-21 and 4.3% for Q1:2021-22.
  • RTGS fund transfer system for real-time fund transfer to be available round the clock 365 days from December.
  • The threshold for aggregate exposure of retail bank loans to one counterparty increased to Rs 7.5 crore from Rs 5 crore.
  • On-tap targeted long-term repo operations (TLTRO) to be conducted, with tenors of up to three years for Rs 1 lakh crore at a floating rate linked to the policy repo rate up to March 31, 2021.
  •  The limit for Ways and Means Advances (WMA) for the centre is kept higher at Rs 1.25 lakh crore compared to Rs 35,000 crore of the previous year. 60% increase in WMA limit for states in the first half of 2020-21 has been extended for a further period of 6 months till March 31, 2021.
  • RBI will conduct market operations in the form of outright and special open market operations. The size of these auctions will be increased to Rs 20,000 crore.
  • Policy rates are as follows –
    • Repo Rate – 4%
    • Reverse Repo – 3.35%
    • MSF – 4.25%
    • Bank Rate – 4.25%
  • Reserve Ratios –
    • CRR – 3%
    • SLR – 18%

Tamil Nadu ties up with World Economic Forum to set up advanced manufacturing hub –

  • The Tamil Nadu government, partnered with World Economic Forum (WEF) to establish what it described as India’s first advanced manufacturing hub (AMHUB) in the state.
  • To attract high-tech organisations, Tamil Nadu needs an ecosystem for advanced manufacturing and needs to providea fillip to the development of industrial corridors and clusters, smart cities.
  • The advanced manufacturing hub or AMHUB is one of the 19 platforms designed by WEF.
  • AMHUB will help the production ecosystem in Tamil Nadu by identifying and addressing regional opportunities brought by the 4IR.

RBI rolls out new ‘On Tap TLTRO’ scheme worth Rs 1 lakh cr –

  • In a continuing effort to provide liquidity support to various economic sectors and banks, RBI announced an ‘On Tap TLTRO’ scheme worth Rs 1 lakh crore.
  • The On Tap TLTRO will be conducted with tenors of up to three years for a total amount of up to Rs 1 lakh crore at a floating rate linked to the policy repo rate.
  • The scheme will be available till the end of the current fiscal year 2020-21 with further enhancement of the amount and period after a review of the response to the scheme.
  • The liquidity availed by banks under the scheme has to be deployed in corporate bonds, commercial papers, and non-convertible debentures issued by the entities in specific sectors over and above the outstanding level of their investments in such instruments as on 30 September 2020.
  • Banks that had availed of funds earlier under targeted long-term repo operations (TLTRO and TLTRO 2.0) have the option of reversing these transactions before maturity. 
  • Between February 6 and September 30, TLTRO and TLTRO 2.0 schemes worth Rs 1.5 lakh crore have been announced.
  • Targeted Long Term Repo Operations [TLTRO] – It is a tool that lets banks borrow one – three year funds from the central bank at the repo rate by purchasing government securities with similar or higher tenure as collateral.

RBI to move to next generation treasury application for managing forex and gold reserves –

  • In a bid to improve its functioning, the RBI has decided to move to the Next Generation Treasury Application (NGTA) for managing the country’s foreign exchange and gold reserves.
  • Acoording to RBI, NGTA would be a web-based application providing scalability, maneuverability and flexibility to introduce new products and securities, besides supporting multi-currency transactions and settlements.
  • The NGTA would be supporting various transactions in asset classes like Fixed Income (FI), Forex (FX), Money Market (MM) and Gold.
  • The objectives of the proposed system includes, dealing in various asset classes; portfolio management; workflow management; reserve management; integration with various third party and in-house systems; and dashboards, reports, widgets.
  • The proposed NGTA would automatically fetch all the relevant details of a security/contract from a trading platform. It should support all internationally accepted conventions pertaining to day count, interest computation, holiday logic, shut period-dividend, ex-dividend, cash flows, and odd coupon.
  • As per RBI the prime bidder for implementation NGTA should be a registered Indian entity under the respective Acts of India. Also, The prime bidder should have a minimum annual turnover of at least Rs 475 crore 2017-18, 2018-19 and 2019-20.

India’s health budget 4th lowest in world –  Oxfam Report –

  • India, is ranked 129 out of 158 countries in the Commitment to Reducing Inequality (CRI) Index by Oxfam.
  • According to the report low spending on public healthcare, poor access health services and labour rights etc are a few reasons for a low ranking.
  • India spent just 4 per cent of its budget on health going into the pandemic — fourth lowest in the world, according to the index.
  • The index added that only half of India’s population have access to even the most essential health services while over 70 per cent of health spending is being met by people themselves. Most workers earn less than half of the minimum wage, 71 per cent don’t have any written job contract while 54 per cent do not get paid leave. Further, it noted that only around 10 per cent of the workforce in India is formal, with safe working conditions and social security.
  •  India was also ranked fifth last among bottom 10 spenders on public services including education, health and social protection.

Retail inflation at 8-month high in Sept; Aug IIP stays in negative –

  • Retail inflation jumped to an eight-month high of 7.34 per cent in September, primarily driven by higher food inflation, which rose to double-digit levels, data released by the National Statistical Office (NSO).
  • At 7.34 per cent, the inflation print is much above the Reserve Bank of India’s medium term target of 4+/- 2 per cent. Core inflation, which excludes impact of food and fuel inflation, however, softened to 5.67 per cent in September from 5.77 per cent in August.
  • Factory output continued to decline for the sixth consecutive month in August, recording an 8 per cent contraction.
  • Manufacturing sector, which has a weight of 77.6 per cent in IIP, contracted 8.6 per cent in August, an improvement from 11.6 per cent contraction in July.

Exim Bank extends USD 400 million soft loan to Maldives –

  • India has extended a USD 400 million (about Rs 2,932 crore) soft loan to Maldives through the Exim Bank to finance a connectivity project.
  • With the signing of the above agreement, Exim Bank has till date extended three LoCs worth a cumulative USD 1.2 billion to Maldives, on behalf of India.

ADB, govt ink USD 570 million loan agreement –

  • Asian Development Bank has inked loan agreement worth USD 570 million (about Rs 4,180 crore) with the Centre to fund public infrastructure building and strengthen urban local bodies in Rajasthan and Madhya Pradesh.
  • ADB and the Government of India signed a USD 300 million loan to finance inclusive and sustainable water supply and sanitation infrastructure and services in 14 secondary towns of Rajasthan.
  • USD 270 million loan was signed to develop water supply and integrated stormwater and sewage management infrastructure as well as strengthen capacities of urban local bodies (ULBs) for improved service delivery in Madhya Pradesh.

Indian economy to contract by 10.3% in 2020; to bounce back with 8.8% growth in 2021: IMF –

  • The IMF in its latest World Economic Outlook stated that The Indian economy, severely hit by the coronavirus pandemic, is projected to contract by a massive 10.3 per cent this year, however  India is likely to bounce back with an impressive 8.8 per cent growth rate in 2021.
  • India’s public debt ratio, which remarkably remained stable at around 70 per cent of the GDP since 1991, is projected to jump by 17 percentage points to nearly 90 per cent because of increase in public spending due to COVID-19.
  • The report said global growth would contract by 4.4 per cent this year and bounce back to 5.2 per cent in 2021.
  • According to the report, China is the only country, among the major economies, to show a positive growth rate of 1.9 per cent in 2020.
  • According to World Bank India’s GDP is expected to contract by 9.6% for the current fiscal year.

Centre permits 20 states to raise Rs 68,825 crore via borrowing to meet GST shortfall –

  • The Centre permitted 20 states to raise Rs 68,825 crore through open market borrowings to bridge the GST revenue shortfall.
  • The projected total compensation shortfall in the current fiscal stands at Rs 2.35 lakh crore. 
  • The Centre had in August given two options to the states — to borrow either Rs 97,000 crore from a special window facilitated by the RBI or Rs 2.35 lakh crore from the market.
  • It had also proposed extending the compensation cess levied on luxury, demerit and sin goods beyond 2022 to repay the borrowing.

Exports grow 6% in September, first rise since February –

  • Merchandise exports grew 6% year on year in September, the first rise since February.
  • Contraction in imports narrowed to 19.6% from 26% in the previous month, suggesting a gradual return towards normalcy.
  • Trade deficit narrowed to just $2.78 billion in September from $6.77 billion in the previous month.

Kisan Credit Card scheme: Rs 1.35 lakh crore credit sanctioned achieved –

  • As part of the Atmanirbhar Bharat package, the government had announced to cover 2.5 crore farmers under the KCC scheme with a credit boost of Rs 2 lakh crore through a special saturation drive.
  • The KCC scheme was introduced in the year 1998 with the objectives of providing adequate and timely credit to the farmers for their agricultural operation. 
  • The Government of India provides interest subvention of 2% and prompt repayment incentive of 3% to the farmers, thus making the credit available at a very subsidised rate of 4% per annum.
  • In 2019 government had extended the KCC with interest subvention to Animal Husbandary including Diary and Fisheries farmers for their working capital requirement and raising the existing limit of collateral-free agriculture loan from Rs 1 lakh to Rs 1.6 lakh.

RBI to discontinue system-based automatic caution listing of exports –

  • In order to provide more flexibilty to exporters and to empower them to negotiate better terms with overseas buyers RBI in its MPC meeting decided to discontinue the system based automatic caution listing of exports.
  • It was launched in 2016 by RBI, wherein exports were were put on RBI’s caution list if any shipping bills against them remained open for more than two years in Export Processing and Monitoring System.

RBI to grand perpetual validity for Certificate of Authorisation (CoA) issued to PSO –

  • The central bank has also decided to grant perpetual validity for Certificate of Authorisation (CoA) issued to Payment System Operators (PSOs) to reduce licensing uncertainties.
  • Currently, the RBI issues “on-tap” authorisation under the Payment and Settlement Systems Act, 2007 to non-banks issuing Prepaid Payment Instruments (PPIs), operating White Label ATMs (WLAs) or the Trade Receivables Discounting Systems (TReDS), or participating as Bharat Bill Payment Operating Units (BBPOUs).
  • Authorisation, including renewal of authorisation, of such PSOs has been largely for specified periods of up to five years.

Reserve Bank bars payment system operators from launching new QR codes –

  • The Reserve Bank barred Payment System Operators (PSOs) from launching any new proprietary QR code for payment transactions.
  • Currently, there are two interoperable QR codes — UPI QR and Bharat QR.
  • QR codes are two-dimensional machine-readable barcodes, which are increasingly used to facilitate mobile payments at the point-of-sale and can store large amount of information.
  • The decision to continue with the two existing Quick Response (QR) codes was based on the recommendations of the committee which was set up by the Reserve Bank under the chairmanship of Deepak Phatak to review the current system of such codes in India and suggest measures for moving towards interoperable QR codes.
  • PSOs that use proprietary QR codes shall shift to one or more interoperable QR codes; the process of migration shall be completed by March 31, 2022
  • Japanese company, Denso Wave, invented the QR code in the 1990s.
  • In India, QR Code Payment Systems broadly support three different types of QR code payments — Bharat QR, UPI QR, and Proprietary QR.

RBI Reviews Regulatory Framework For Housing Financiers –

  • The Reserve Bank of India has issued a revised set of guidelines for housing finance companies after it took over regulation of these lenders last year.
  • The final guidelines follow a draft issued in June this year and seek to harmonise regulations between non-bank lenders and housing financiers.
  • The new rules define a housing finance company as an NBFC where at least 60% of total assets are in the form of financing for housing. In addition, not less than 50% of the company’s assets should be housing financing for individuals.
  • The RBI asked housing financiers to create a liquidity buffer in the form of a liquidity coverage ratio, which will help survive any acute liquidity stress scenario lasting for 30 days.
  • Non-deposit taking HFCs with asset size of Rs 10,000 crore and above, along with all deposit taking HFCs will need to maintain an LCR of 50% starting December 2021. This will be raised in stages to 100% by 2025.
  • All non-deposit taking HFCs with asset size of Rs 5,000 crore and above will need to maintain an LCR of 30% starting December 2021. This will be raised to 100% by December 2025.
  • HFC which are willing to undertake exposure in group companies, such exposure by way of lending and investing, directly or indirectly, cannot be more than 15 percent of owned fund for a single entity in the group and 25 percent of owned fund for all such group entities.

IndusInd Bank first bank to goes live on RBI’s Account Aggregator Framework –

  • Private sector IndusInd Bank has gone live as a Financial Information Provider (FIP) under the new Account Aggregator Framework of the Reserve Bank of India. It is the first bank in the country to do so.
  • As an ‘FIP’, IndusInd Bank will facilitate customers to share their financial information with Financial Information Users on the Account Aggregator Ecosystem in a secure and seamless manner, basis exclusive consent from the customer.
  • The RBI first announced the Account Aggregator (AA) framework via a Master Directive in June 2016. It will enable customers to avail benefits like viewing statements of their accounts, track deposits, plan investments and avail credit cards on a single window.
  • Benefits of Account Aggregator –
    • Eliminates the need of submission of physical documents.
    • Individuals and SME customers can share their financial information digitally.
    • There is a better control of financial information which is shared.

IFSCA Board Approves two Regulations

  • International Financial Services Centres Authorities (Bullion Exchange) Regulation 2020 –
    • The Government of India, on the recommendation of IFSCA, notified the bullion spot delivery contract and bullion depository receipt (with bullion as underlying) as Financial Products and related services as Financial Services under the IFSCA Act, 2019 on August 31, 2020.
    • IFSCA has been tasked with the responsibility of operationalization of this bullion Exchange. For the first time in India a single regulator will be regulating both the bullion spot and derivative contracts that would be traded on the Exchange.
    • The Bullion Exchange Regulations envisage to provide an integrated platform for all the market intermediaries including trading members/ clearing members, bullion depositories, vault managers, etc. so as to facilitate transparency and traceability in the bullion market and standardisation of bullion contracts.
    • The salient aspects of the Bullion Exchange Regulations include:
      • Functions and general obligations of a bullion exchange and clearing corporation
      • Ownership and governance structure of a bullion exchange and clearing corporation
      • Rights and Obligations of Bullion Depositories, Participants and Beneficial Owners
      • The grant of registration to a vault manager by the Authority
      • The role of bullion depositories
      • Other operational aspects of the bullion exchange
  • International Financial Services Centres Authority (Global In-House Centres) Regulations, 2020 –
    • On October 16, 2020, Government of India, on the recommendation of IFSCA, had notified Global In-House Centres (GIC) as financial service to provide services relating to financial products and financial services.
    • Some of the salient features of the regulations –
      • A GIC may conduct its business in any mode permitted by the Authority, including branch mode
      • The applicant entity shall exclusively cater to its financial services group wherein the entities served must be located in a Financial Action Task Force (FATF) compliant jurisdiction
      • A GIC set up within the IFSC shall be entitled to avail itself of all concessions including tax holiday applicable to IFSC units
  • Gujarat-headquartered IFSCA has been authorised to regulate all financial services at IFSCs. The IFSCA was established on April 27 this year with its head office in Gandhinagar.

Global Hunger Index 2020: India ranks 94 out of 107 countries –

  • India ranked 94 among 107 countries in the Global Hunger Index 2020 and is in the ‘serious’ hunger category with a score of 27.2 according to a report submitted by Concern Worldwide and Welthungerhlife.
  • Previously in 2019 India’s rank was 102 out of 117 countries and in 2018 it was ranked 103 among 119 countries.
  • 17 nations shared the top rank with GHI score of less than 5.
  • According to the report, 14 per cent of India’s population is undernourished. It also says that the country recorded a child stunting rate of 37.4 per cent. Stunted children are those who have a low height for their age, reflecting chronic undernutrition.
  • South Asia has the highest child wasting rate for any region and India shares 17.3% in the region.
  • India has improved in Child mortality rate which now stands at 3.7%.
  • As per the report the worldwide hunger is at “moderate” level but there are nearly 690 million people across the world who are undernourished.
  • About GHI –
    • GHI is a tool designed to measure and track hunger at global and regional level. Data from UN and other multilateral agencies are collected and used for calculation GHI on the basis of 4 indicators –
      • Population that is undernourished
      • Children under age of 5 who are wasted
      • Children who are under the age 5 and wasted
      • Child mortality rate under the age of 5.
    • A score of less than 9.9 signifies low levels hunger. A score of 10-19.9 signifies moderate levels of hunger. A score of 20-34.9 signifies serious levels of hunger. A score of 35-39.9 signifies alarming levels of hunger. A score of 40-50 signifies extremely alarming levels of hunger.

Tuberculosis notifications in 2020 down by 25% in India –

  • According to Global tuberculosis report 2020 released by WHO there has been a 25% dip in TB cases notifications across India, Indonesia and Philippines three high burden countries.
  • According to the report the pandemic is reversing the effect of progress made by nations to lessen the burden of TB. Global TB deaths my increase by 0.2 – 0.4 million in 2020.
  • India has the highest burden of drug resistant TB and accounts to 26% percent of global TB cases.

PM Modi launches physical distribution of property cards under SWAMITVA scheme –

  • PM Modi on October 11, 2020 launched a physical distribution of property cards, a legal document of owning their houses under SAMVITA scheme.
  • The aim of this scheme is to help villagers to utilize their property as a financial asset to get loans and other financial benefits.
  • The property card will enable villagers to buy and sell property without any dispute.
  • The card ensures the ownership of the property.
  • The launch enables the property owners to download their property card through a link sent by SMS to the registered and the rightful owner.
  • Survey of Village Abadi and Mapping with Improvised Technology in Village Areas (SAMVITA) scheme aims to provide integrated property validation solution to rural India.
  • Under the scheme the inhabited lands (abadi areas) will be mapped using drone surveillance technology and this will help the gram panchayat to create a Geographical Information System (GIS) Map.

NABARD to refinance Rs.800 cr scheme loans –

  • NABARD announced a a special refinance facility of Rs.800 cr for FY21 to support the government of India water, sanitation and hygiene (WASH) programme.
  • NABARD will provide the refinance facility to all eligible lending institutions with a repayment period of 36 months.
  • The support will be transferred0020to fund WASH activities that are a thrust area eligible for 95% refinance.
  • NBFC-MFI and other MFI’s can avail the bank credit.
  • The initiate is set to boost the Swachh Bharat Mission.

Shri Arjun Munda launched India’s Largest Marketplace of Tribal products ‘Tribes India e-Marketplace’

  • On the occasion of Gandhi Jayanti Minister of Tribal Affairs Shri, Arjun Munda launched largest marketplace of tribal products Tribes India e-marketplace (market.tribesindia.com) which is India’s largest handicraft and organic products marketplace.
  • Keeping in line with the vision of the Prime Minister of making India Aatmanirbhar and self-reliant,this pathbreaking initiative of TRIFED under Ministry of Tribal Affairs will showcase the produce and handicrafts of tribal enterprises from across the country and help them market their produce/ products directly.
  • It is an initiative by TRIFED and aims to onboard 5 lakh tribal producers for sourcing handicraft, handloom, natural food products across the country.
  • He also inaugurated two new Tribes India outlets in Rishikesh and Kolkata.

    • TRIFED – The Tribal Cooperative Marketing Development Federation of India (TRIFED) came into existence in 1987. It is a national-level apex organization functioning under the administrative control of Ministry of Tribal Affairs. The objective of TRIFED is socio-economic development of tribal people in the country by way of marketing development of the tribal products.