Current Affairs - Finance

The Reserve Bank of India (RBI) has increased the collateral-free agricultural loan limit from ₹1.6 lakh to ₹2 lakh, effective January 1, 2025. This initiative is aimed at benefiting farmers and allied activities by reducing borrowing costs and improving credit access, especially for small and marginal farmers. The increase in loan limits also enhances the uptake of Kisan Credit Card (KCC) loans, allowing farmers to avail loans up to ₹3 lakh at a 4% effective interest rate. This move supports agricultural growth and financial inclusion.

The Asian Development Bank (ADB) approved a loan of $789 million for the development of Amaravati, aiming to transform it into a smart, green capital city with world-class infrastructure. This loan is intended to boost job creation, private investment, and inclusive economic growth while positioning Amaravati as a model for sustainable urban development. The program highlights the collaborative efforts of ADB and other Multilateral Development Banks (MDBs) to bring global expertise to the city's development.

The $25.45 million grant for the Solomon Islands water project was approved by the Asian Development Bank (ADB). This grant is part of the larger Urban Water Supply and Sanitation Sector Project, which aims to improve water and sanitation services in Honiara and five other towns. The project focuses on providing sustainable, climate-resilient water services, enhancing hygiene awareness, and managing water efficiently. The total cost of the project is $125 million, co-funded by ADB, the World Bank, the Global Environment Facility, and the European Union.

The Rising Rajasthan Investment Summit, inaugurated by PM Modi, centred around the theme "Replete, Responsible, Ready." The three-day event emphasized 12 key sectors, including water security, sustainable mining, tourism, and women-led startups. With eight country sessions featuring global participants, the summit aimed to enhance water management, trade, and tourism, supporting Rajasthan’s ambitious goal of doubling its economy with investments of ₹30 lakh crore.

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.