Current Affairs - Finance

The World Bank has approved a $188.28 million loan to Maharashtra, aiming to promote economic growth in the state's underdeveloped districts. The loan is intended to enhance district-level governance, improve e-governance services, and foster private-sector engagement. With the creation of a Maha Databank and an incentive framework for districts meeting performance targets, the project seeks to address challenges like gender disparities, fragmented governance, and poor data availability, thus driving inclusive growth in these backward districts.

The Asian Development Bank (ADB) signed a $98 million loan agreement with India to support the Atmanirbhar Clean Plant Programme. This initiative aims to enhance access to certified disease-free planting materials, boosting crop yield, quality, and climate resilience. By collaborating with nurseries, researchers, and growers, the program promotes sustainable practices and addresses climate challenges in horticulture plant health management.

The Reserve Bank of India has increased the transaction limit for UPI 123Pay from Rs 5,000 to Rs 10,000, enabling feature phone users without internet access to make higher-value digital payments. This service operates through methods such as IVR, missed calls, and sound technology, ensuring secure and seamless transactions. Additionally, new features like Aadhaar OTP for authentication and transaction purpose codes enhance security and tracking. This development significantly broadens financial inclusivity.

The Asian Development Bank (ADB) has provided a significant boost to Sri Lanka's financial sector with a $200 million policy-based loan. This loan, the second subprogram under ADB's Financial Sector Stability and Reforms Program, aims to stabilize Sri Lanka's economy and address the ongoing financial crisis. As a leading regional financial institution established in 1966, ADB plays a vital role in promoting economic growth and development in Asia. Headquartered in Manila, Philippines, and led by President Masatsugu Asakawa, ADB's support is crucial for Sri Lanka's economic recovery and long-term financial stability.

The European Central Bank (ECB) has introduced the digital euro as a central bank digital currency (CBDC) to modernize Europe's payment landscape. The digital euro enables direct peer-to-peer transactions, reduces transaction costs, and maintains anonymity similar to cash. As a digital version of cash, it is issued directly by the ECB and aims to strengthen Europe's digital sovereignty against global competitors. Unlike cryptocurrencies, CBDCs like the digital euro are legal tender, issued and backed by a central bank, providing a secure and regulated digital payment solution.