Daily Current Affairs: 28 December 2024

Nepal Hosts First International Balloon Festival in Pokhara

Nepal’s scenic city of Pokhara, known as the country’s tourism capital, has elevated adventure tourism with its inaugural International Balloon Festival. The nine-day event, titled the BYD International Balloon Festival, commenced on 24 December 2024 and will run until 2 January 2025 in the Pame region.

Participants from 30 countries are attending this vibrant event, which features over 20 international pilots and more than two dozen balloon companies. Attendees can enjoy daily hot air balloon flights with breathtaking views of the Annapurna, Machhapuchhre, and Dhaulagiri mountain ranges, solidifying Pokhara as a premier destination for adventure enthusiasts.

Current Account Deficit Narrows to $11.2 Billion in Q2: RBI

India’s current account deficit (CAD) moderated slightly to $11.2 billion (1.2% of GDP) in the July-September 2024 quarter, compared to $11.3 billion (1.3% of GDP) during the same period last year, according to the Reserve Bank of India (RBI).

Key highlights from the RBI report:

April-September 2024 (H1 FY2024-25): CAD stood at $21.4 billion (1.2% of GDP) compared to $20.2 billion (1.2% of GDP) in H1 2023-24.
Private Transfer Receipts: Remittances by overseas Indians rose to $31.9 billion in Q2 FY2024-25 from $28.1 billion a year ago.
Net Foreign Direct Investment: Recorded an outflow of $2.2 billion, compared to an outflow of $0.8 billion in Q2 2023-24.

The CAD, a vital indicator of the country’s external economic health, reflects the gap between exports and imports of goods and services.

Rural, Urban Consumption Inequality Declines: Government Survey

The latest Household Consumption Expenditure Survey (August 2023-July 2024) reveals a decline in consumption inequality in both rural and urban areas.

Key findings:

Gini Coefficient:
- Rural areas: Declined from 0.266 to 0.237.
- Urban areas: Declined from 0.314 to 0.284.
Monthly Per Capita Consumption Expenditure (MPCE):
- Rural areas: ₹3,773.
- Urban areas: ₹6,459.

The survey, conducted across 2,61,953 households, provides critical insights into wealth distribution and consumption trends in India.

Banks’ Gross NPA Ratio Drops to 13-Year Low

The gross non-performing assets (GNPAs) ratio of scheduled commercial banks (SCBs) has declined to a 13-year low of 2.5% as of September 2024, according to the RBI.

Highlights:

Year-on-Year Decline: GNPAs reduced by 15.9% to ₹4.8 lakh crore as of March 2024.
Historical Comparison: The GNPA ratio was last at 2.35% in FY2010-11.
The decline is attributed to better recoveries and upgrades, showcasing the improved asset quality of Indian banks.

RBI Forms Panel on Ethical Use of AI

The Reserve Bank of India (RBI) has constituted an eight-member committee to develop a framework for responsible and ethical enablement of Artificial Intelligence (FREE-AI) in the financial sector. The panel is chaired by Professor Pushpak Bhattacharyya of IIT Bombay.

Objectives:

Assess global and Indian adoption of AI in financial services.
Review regulatory approaches and identify potential risks.
Recommend governance frameworks for ethical AI adoption in financial institutions, including banks, NBFCs, and FinTechs.

Prominent members include experts from HDFC Bank, Microsoft India, and the Ministry of Electronics and IT.

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