JUNE 8, 2023 THURSDAY

ISSUE #279

School's Column
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AstraZeneca India appoints Bhavana

Agrawal as Chief Financial Officer with
effect from October.
Indian toy industry grows 316 per cent in
the last nine years.
Govt asks edible oil firms to immediately
slash retail prices by ₹8-12 per litre.
Govt caps tur and urad dal stock to curb
hoarding, rising prices.
Tata to build India’s first lithium-ion cell
manufacturing gigafactory in Gujarat.
Google rolls out AI-powered image
generating feature to Slides.
Odisha govt calls off plan to divest 49%
stake in Odisha Power Generation Corp.

ECONOMICS LEXICON
Opportunity cost
The value of the next best alternative forgone when
making a decision, highlighting the trade-offs and
potential benefits sacrificed in the process. Example: A
student spends three hours and ₹500 at the movies the
night before an exam. The opportunity cost is time spent
studying and that money to spend on something else.
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NEW SEGMENT!

Book Of The Week

From the editor's desk...

THE MONK WHO SOLD HIS

FERRARI
BY ROBIN SHARMA
Key takeaways from the
book:-
1.Use The Heart of the
Rose exercise to guard
your mind against
unwanted thoughts.
2.Develop a simple 10-
step morning routine with
The Ten Rituals of Radiant
Living.
3.Selflessly serving others
counterintuitively leaves
you better off too.
 PAGE - 3
A variety of customer-focused
activities are suggested for
banks by the RBI panel.
On Monday, a panel set up by the RBI proposed a number of
customer-centric initiatives for banks, including online claims
settlement for beneficiaries of deceased account holders, flexibility
for pensioners to submit life certificates, and a centralised KYC
database.
It was also recommended in the report of the Committee for Review
of Customer Service Standards in RBI Regulated Entities (REs) that
account activities not be suspended pending recurring Know Your
Customer (KYC) updates.
It was suggested that there should be a time limit for returning
property documentation to borrowers after the loan account was
closed, failing which the lender should be penalised.
The research recommended that in the event that property
documents are lost, the RE be required to not only assist in
acquiring certified registered copies of the documents at their
expense but also to fairly pay the customer, taking into account the
time required to organise the alternate copies of the documents.
The committee was established by the Reserve Bank in May of last
year, and its former deputy governor was BP Kanungo. According to
the report, the committee examined the complaints that the RE's
Internal Grievance Redress (IGR) system had received over the
previous three years and found that the number of complaints had
stayed within a range of approximately one crore per year.
According to the report, the REs should establish a system to let the
complainant follow the status of the complaint processing up until
the recommendation for a unified complaint portal is implemented.
The committee has also recommended actions that will help
pensioners.
The pensioners should be able to submit their Life Certificates (LC)
at any branch of the bank where they keep their pension accounts,
according to the statement.
They should also be able to submit their LC in any month of their
choosing in order to avoid the rush in one specific month, and they
can submit successive LCs in the same month at yearly intervals, it
was noted.
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Digital payments frauds

nearly double in FY23
- The value of frauds reported by Indian banks decreased from
59,819 crore in FY22 to 30,252 crore in FY23. However, digital
frauds using cards and internet-based payment methods
nearly doubled in the previous financial year.
- In FY22, there were 3,596 frauds worth 155 crore using cards
and internet banking services. This number almost doubled to
6,659 digital frauds worth 276 crore in FY23.
- The majority (94.5%) of the frauds reported in FY23 by value
actually occurred in previous financial years. Lenders faced
delays in identifying and reporting these frauds.
- Fraudsters are employing new techniques, including
phishing, malware, vishing, SIM cloning, and creating fake UPI
handles on social media to deceive customers.
- The Bureau report highlighted that 55% of the reported
digital payment frauds in May 2022 were related to UPI
transactions, with half of them involving ticket sizes below Rs
10,000.
- Experts point out that the increase in digital transactions and
the lack of adequate digital education among customers have
made them vulnerable to fraud.
- UPI transactions witnessed a remarkable 427% volume
growth between 2020 and 2022, indicating the growing
popularity of digital payments.
- Biju K, senior vice president & chief vigilance officer at
Federal Bank, noted that both fraudsters and customers have
embraced digital evolution. The convenience of real-time
payment infrastructure like UPI has made digital transactions
commonplace, especially during the pandemic.
- It is expected that cash transactions will continue to
represent a small share (10%-12%) of overall banking
transactions in the future.
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India's Russian oil buy is now

more than Saudi, UAE, Iraq
and US combined

India took 1.96 million barrels a day from

Russia in May, 15% more than the previous
high in April, according to data from energy
cargo tracker Vortexa.
The imports from Russia are now more than
the combined purchases from Iraq and Saudi
Arabia -- India's biggest suppliers in the last
decade -- as well as UAE and the US.
Iraq supplied 0.83 million barrels per day
(bpd) oil in May, while UAE shipped 203,000
bpd. As much as 138,000 bpd was sourced
from the US, the data showed.
Russia now makes up for nearly 42% of all
crude oil India imported in May. This is the
highest share for an individual country in
recent years.
The rise in Russian share came at the cost of
traditional suppliers in the Middle East.
Shipments from Saudi Arabia slipped to
560,000 tonnes - the lowest since February
2021, according to figures from the shipping
analytics company
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World food prices fall to two-year low

in May – UN food agency
- The United Nations food agency's price index for global
food commodities fell to its lowest level in two years in
May.
- The decline in prices of vegetable oils, cereals, and dairy
outweighed the increases in sugar and meat prices.
- The Food and Agriculture Organization (FAO) reported
that the index averaged 124.3 points in May, down from a
revised 127.7 in the previous month.
- This marked the lowest level since April 2021 and a 22%
decrease from the all-time peak in March 2022.
- The drop in the cereal price index was driven by ample
supply prospects and the extension of the Black Sea
Grain Initiative, allowing shipments from Ukraine.
- Rice prices continued to rise due to tighter supplies in
some exporting countries.
- Vegetable oil prices slid due to large oilseed supplies
and weak demand for palm oil, while dairy prices eased
due to increased milk output in the northern hemisphere.
- Sugar prices increased for the fourth consecutive
month, driven by concerns over the El Nino weather
pattern and global supply risks.
- Weather conditions in Brazil and lower crude oil prices
limited the sugar market's upward trend.
- FAO forecasts a 1% increase in world cereal production
for 2023, mainly driven by expected growth in maize
output.
- Global cereal stocks for the 2023/24 season are
projected to reach a record 873 million tonnes, with larger
stocks of maize, rice, and barley.
- Wheat stocks, however, are expected to decline due to a
decrease in production despite stable demand.
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Tata Motors to introduce new

CNG and electric models to
sustain growth
Tata Motors is working on several CNG and electric
cars even as the automaker expects the passenger
vehicle industry growth to moderate to 5-7 percent
in the current financial year as compared with 27
percent sales growth in the last financial year with a
dip in pent-up demand.
"There's going to be a steep increase in the EV
volumes. We are expanding our portfolio in the CNG
segment, so I think we have several levers, which are
going to increase our volumes, as well as market
share," Managing Director, of Passenger Vehicle and
Electric Vehicles at Tata Motors, Shailesh Chandra
said during an analyst call.
"We are going to bring a CNG variant (of Punch) with
the twin-cylinder technology and this is going to be
unique in the market...We are also planning to bring
EVs, so we are very confident that these two
products will be able to sustain the volumes," he
noted.
Earlier this month, Tata Motors launched the CNG
version of its premium hatchback Altroz at an
introductory price of Rs 7.55 lakh (ex-showroom all-
India).
In FY23, Tata Motors reported its best-ever year in
terms of dispatches to dealers at 5.4 lakh units. The
company's wholesales grew around 45 percent year
on year as compared with FY22.
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Economic woes dash job
prospects in low income
countries: ILO
- The International Labour Organization (ILO) highlights the
widening jobs gap between high-income and low-income
countries, with over 21% of people who want to work unable to
find employment in low-income countries.
- In low-income countries, more than one in four individuals face
unemployment, while the rate is 8.2% in high-income countries.
- Low-income countries in debt distress are particularly affected
by joblessness.
- Global unemployment is projected to decrease to 5.3% in 2023,
but improvements may not be seen in low-income countries,
especially in Africa and the Arab region.
- The global jobs gap, representing those seeking work but unable
to find it, is expected to reach 453 million people in 2023, with
women disproportionately affected.
- Africa's labor market has been severely impacted by the
pandemic, hindering the continent's recovery.
- Limited fiscal and policy capacity, combined with debt distress,
prevent comprehensive stimulus packages in African countries.
- Enhancing employment prospects and investing in welfare safety
nets are vital for economic and social recovery, particularly in
low-income countries.
- Expanding social protection and pensions could significantly
boost gross domestic product (GDP) per capita in low and middle-
income countries.
- Allocating approximately 1.6% of GDP for social protection
measures is a feasible investment.
- Creating fiscal space for social investment should be urgently
discussed as part of global financial reform.
- Concerted action on jobs and social protection can support an
inclusive recovery.
- Developing labor market policies that prioritize upskilling and
reskilling will help prepare the workforce for a greener and more
digital future of work.
 PAGE - 11
IndiGo's to potentially buy
500 jets from Airbus to
compete with Air India
IndiGo, India's largest carrier by market share, is
all set to potentially close in on a record deal to
buy 500 narrow-body A320-family jets from
Airbus, according to industry sources on
Sunday.
Airbus has emerged as the front-runner for the
order and the it will eclipse Air India's
provisional purchase of nearly 470 jets in
February.
Such a deal would be worth some $50 billion at
the most recently published Airbus list prices,
but would typically be worth less than half this
after widespread airline industry discounts for
bulk deals, according to aircraft analysts.
Airbus and Boeing are also competing in
separate talks to sell 25 A330neo or Boeing 787
wide-body jets to the same airline.
IndiGo's Chief Executive Pieter Elbers, attending
the annual meeting of the International Air
Transport Association in Istanbul, declined to
comment on commercial matters.
IndiGo, which has a 56% share of the domestic
Indian market, was in talks with both Airbus and
Boeing for the order, which if confirmed would
be the largest by a single airline ranked by units.
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News in
numbers
 PAGE - 13

International Economics
US inflation hits 40-year high of 8.6%. The US Consumer
Price Index (CPI) rose 8.6% in May from a year ago, the
highest annual increase since December 1981. The rise
was driven by higher prices for food, energy, and
housing.
Fed policymakers signal more aggressive rate hikes.
Federal Reserve policymakers signaled that they are
prepared to raise interest rates by 0.75 percentage
points at their next meeting in July, in an effort to
combat inflation. This would be the largest rate hike
since 1994.
China's economy contracts in Q1. China's economy grew
by 4.8% in the first quarter of 2023, down from 6.1% in
the fourth quarter of 2022. The slowdown was due to a
number of factors, including the COVID-19 lockdown in
Shanghai and the ongoing war in Ukraine.
European Central Bank (ECB) announces plans to raise
interest rates. The European Central Bank (ECB)
announced plans to raise interest rates for the first time
in 11 years. The ECB will raise its deposit rate by 0.25
percentage points in July and by 0.5 percentage points
in September.
UK economy shrinks in April. The UK economy shrank by
0.3% in April, the first contraction since January 2022.
The slowdown was due to a number of factors, including
the cost of living crisis and the ongoing war in Ukraine.
These are just a few of the many economics related
news stories that are making headlines today. The global
economy is facing a number of challenges, including
high inflation, rising interest rates, and the ongoing war
in Ukraine. These challenges are likely to continue to be
a major focus of economic news in the coming months.
 EDITORS
Jithin Rangani (X-C)
Snehil (X-C)

Columnists
Rishi Chaurasia (XI-E)
Shrey Chaudhary (XII-A)
Janvi Singh(XI-B)
Angel Rastogi (XI-D)
Dhanya Aggarwal (XII-D)
Aarushi (XI-B)
Rishika Garg (X-D)
Sajal Saran (IX-D)