Govt extends Pradhan Mantri Vaya Vandana Yojana till 31 March 2023; Lowers Interest Rate to 7.4%
* The Union Cabinet has approved the extension of ‘Pradhan Mantri Vaya Vandana Yojana’ (PMVVY), a pension scheme for senior citizens above 60, for a further period of three years up to 31 March 2023.
* Earlier, the last date of PMMVY was March 31, 2020.
* However, the government has fixed the annual rate of return on the scheme at 7.4 percent for financial year 2020-21, and thereafter to be reset every year.
* This interest rate is lower as compared to 8 percent being given for the financial year ending 31 March 2020.
ICRA Predicts Indian Economy to likely contract by 5% in FY21
* The Ratings agency ICRA has predicted India’s GDP growth for FY 2020-21 at -5.0%. Earlier it has predicted the same at around -1% to -2 %.
* It means the GDP of India will contract by 5.0% in FY21.
Reserve Bank of India’s Monetary Policy Statement for 2020-21
* In view of the COVID-19 pandemic, the Reserve Bank of India’s Monetary Policy Committee (MPC) decided to advance the Bi-monthly Monetary Policy meet which was scheduled to be held on 03rd June 2020 and the announcement was meant to be made on 05th June 2020. The meeting was advanced to 20th, 21st and 22nd May 2020. During the Monetary Policy meet, the MPC analysed the current & evolving macroeconomic and financial conditions and has decided to take a accommodative stance and hence reduced the policy repo rate to revive growth as well as to mitigate the impact of COVID-19. With its decisions, MPC aims to keep inflation within the target and hence to preserve financial stability.
The key decisions taken in the Monetary Policy Committee meeting are:
* The repo rate under the liquidity adjustment facility (LAF) has been reduced by 40 basis points from 4.40% to 4.00%.
* The reverse repo rate under the LAF has been reduced by 40 basis points from 3.75% to 3.35%.
* The marginal standing facility (MSF) rate and the Bank Rate have been reduced from 4.65% to 4.25%.
Rajiv Gandhi Kisaan Nyay Yojana launched in Chhattisgarh
* The Chhattisgarh government has launched the Rajiv Gandhi Kisan Nyay Yojana, a scheme to ensure “minimum income availability” to farmers of the state through direct bank transfer.
* The scheme was jointly launched by Congress Chief Sonia Gandhi and Chhattisgarh Chief Minister Bhupesh Baghel on 21 May 2020, to mark the death anniversary of former prime minister Rajiv Gandhi.
Key features of the scheme
* The aim of the scheme is to help farmers earn more and bring more area in the state under cultivation, which currently stands at 20 percent.
Under the Rajiv Gandhi Kisan Nyay Yojana, Rs 10,000 per acre will be deposited in the bank accounts of farmers (based on registered area and area under cultivation, during Kharif crop season 2019), as agriculture assistance grant for sowing crops such as paddy, maize and sugarcane.
* The state government had allocated Rs 5,756 crore in the budget 2020-21, for the scheme.
* The amount will be given to the farmers in four installments and at least 19 lakh farmers will benefit from the scheme.