Economy Matters

Dinner Party Prep: Aadhar-Pan Deadline, FRDI Bill, Bitcoins & More.

Wondering if you are up to speed with topics that are likely to pop up at your upcoming party? Here’s a list of things that happened over the last week, that you should know about:

PAN AADHARWhen someone talks about Aadhar you can say that the Govt. has extended the deadline for linking  PAN to Aadhar for the 3rd time:

People who haven’t yet linked their bank account or PAN with Aadhaar, can breathe a sigh of relief because the Central Government has ONCE AGAIN extended the deadline for linking PAN and bank accounts to Aadhar till March 31st, 2018. *Geez, stop procrastinating!* 

While these deadlines have been extended, the last date for linking your mobile phone with Aadhaar remains February 6, 2018. Linking has been made mandatory for convenience in availing various government schemes and benefits and for preventing tax evasion. However the Supreme Court has still not granted its approval for this because its a breach of an individuals privacy. 

documentbank iconWhen someone talks about the new FRDI Bill you can say that this is a move by the Government to prevent banks from going bank-corrupt bankrupt:

The Centre’s proposed Financial Resolution & Deposit Insurance Bill (FRDI) is issued to help financial entities like banks, non-banking financial companies (NBFCs), insurance companies, pension funds or mutual funds from huge failures. This is a good thing, right? Then why are people against this bill? People aren’t against this bill as a whole but against the bail-in provision in this bill.

This provision has alarmed people because it allows a Government entity to use your hard earned deposited money for helping a financial institution (like Banks, insurance companies etc.) to recover their losses. That’s why a petition was started asking the Finance Minister, Arun Jaitley to remove the ‘Bail-in’ provision from the FRDI Bill. 

But we shouldn’t worry because the Government has given assurance that your deposits will be safe and that apart from the Bail-in provision it has many other ways to prevent failing institutes. 

BITCOINS RISEWhen someone talks about Bitcoins tell them about how it sky rocketed to $17000:

Bitcoin soared past the $17,000 mark on Thursday going up more than 40 percent this week alone. The reason for this massive jump was the announcement of  a bitcoin product being allowed to trade on major U.S. exchanges making it almost as easy to bet on Bitcoins as you would bet on oil. While this happened hackers this week reportedly stole bitcoins worth $70 million from NiceHash, a cryptocurrency platform.

GDPrise-and-shineWhen someone talks about India’s GDP you can say that there will be rise of 7.5% in 2018:

 The Indian economy is expected to witness growth in their GDP from 6.4% this year to 7.5% in 2018 and further to 7.7% in 2019. The global brokerage firm Morgan Stanley shows its confidence in private capital spending as demand conditions are improving after demonetization and G.S.T. Both consumption and exports are also improving and this in turn should lead to a growth in corporate revenues. 

interestinterestWhen someone talks about the RBI rates you could say they have been kept intact in order to control inflation:

The RBI has certain tools to control inflation in the country. One of them is their power to change key lending rates (a.k.a repo rates). When we need money we go to a bank for loans. Similarly when banks need money, they go to the central bank for financial assistance. Repo Rate is the rate the RBI  charges for giving money to banks, and reverse repo rate is  the rate at which banks get interest for depositing their excess money with the RBI. Now these rates affect you because if banks borrow at a higher rate from the RBI they will make borrowing for you also expensive. 

The RBI reviews these rates every 2 months in their Monetary Policy meetings. In its last meeting on 6th December, the RBI kept key lending rates (a.k.a repo rates) unchanged at 6% and reverse repo rate at 5.75% to control inflation. 

Now that you know these topics, the next time someone mentions them you know what to say.

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If there are any such topics spoken about at a party that have made you feel out of the loop, write to us at hello@missmanage.com and we will cover it in our next edition.

 

 

 

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