Current Affairs - Finance

The Union Budget 2024-25 raised the Mudra loan limit under the Pradhan Mantri Mudra Yojana (PMMY) from Rs 10 lakh to Rs 20 lakh. This increase includes the introduction of a new "Tarun Plus" category, aimed at supporting entrepreneurs who have successfully repaid previous loans under the "Tarun" category. Loans up to this amount are also covered by the Credit Guarantee Fund for Micro Units, helping to boost credit access and financial support for small business owners and micro-entrepreneurs.

The Asian Development Bank (ADB), in collaboration with the World Bank, has committed to providing $1.6 billion for the development of Amaravati’s Phase-I. This funding will begin in January 2025 and will support various aspects of urban planning, governance, and infrastructure in Andhra Pradesh's capital city project. Out of the total project cost of Rs 15,000 crore, Rs 1,400 crore will be contributed by the Indian government, ensuring a significant push towards modernizing and developing the new capital of Andhra Pradesh.

Navi, co-founded by Sachin Bansal, has achieved significant growth and has become the fifth-largest player on UPI in India. In September 2024, Navi processed an impressive 120.4 million transactions valued at ₹6,549.1 crore, surpassing Amazon Pay's UPI volumes. The company is closing in on the fourth spot, trailing Cred by just 20 million transactions. Navi's rise underscores its increasing influence in India's digital payments landscape, competing with established players like Paytm, Google Pay, and PhonePe. Its growth trajectory indicates a promising future in the fintech sector.

The Reserve Bank of India (RBI) has increased the wallet limit for UPI Lite transactions from Rs 2,000 to Rs 5,000. This enhancement allows users to store and transact larger amounts via UPI Lite, making it more convenient for everyday transactions. Along with this, the transaction limit through UPI Lite has also been raised from Rs 500 to Rs 1,000, further facilitating seamless and secure digital payments. These changes are aimed at improving the user experience and reducing fraud risks in the digital payment ecosystem.

India has demonstrated its commitment to global health initiatives by pledging a substantial amount to the Centre of Excellence for Traditional Medicine. This contribution is part of India's larger pledge of over $300 million to the WHO's core programs from 2025 to 2028. As the sixth largest global contributor to the WHO, India plays a significant role in addressing the organization's funding gap of $7.1 billion. This investment highlights India's focus on promoting traditional medicine and supporting global health initiatives, aligning with the WHO's efforts to bridge funding gaps and achieve its health objectives.