On June 14, 2017, Union Cabinet chaired by the Prime Minister Narendra Modi approved following bilateral agreements and initiatives:
Cabinet approves Interest Subvention to banks on Short-Term crop loan to farmers
Union Cabinet has approved the Interest Subvention Scheme (ISS) for farmers for the year 2017-18.
Salient Features of Interest Subvention Scheme (ISS):
- The Central Government will provide interest subvention of 5% per annum to all prompt payee farmers for short term crop loan up to one year for loan up to Rs. 3 lakhs borrowed by them during the year 2017-18.
- The Central Government will provide approximately 20,339 crore as interest subvention for 2017-18.
- In order to give relief to small and marginal farmers who would have to borrow at 9% for the post harvest storage of their produce, the Central Government has approved an interest subvention of 2% i.e. an effective interest rate of 7% for loans up to 6 months.
- To provide relief to the farmers affected by natural calamities, the interest subvention of 2% will be provided to Banks for the first year on the restructured amount.
Cabinet approves MoU between India and Palestine on agriculture cooperation
Union Cabinet has given its ex-post facto approval to the Memorandum of Understanding (MoU) between Ministry of Agriculture & Farmers’ Welfare and the Ministry of Agriculture in the State of Palestine on agriculture cooperation.
Details about MoU between India and Palestine on agriculture cooperation:
- MoU was signed in May 2017 during the visit of the Palestinian Minister of Foreign Affairs to India.
- The MoU provides for cooperation in the fields of agricultural research; veterinary field including capacity enhancement of Palestinian Veterinary services and Animal Health; irrigation and climate change.
- Under the MoU, an Agricultural Steering Committee will be constituted to determine the programs and action plans to achieve the objectives provided in the MoU.
- Capital: East Jerusalem
- Currencies: Israeli new shekel, Egyptian pound, Jordanian dinar
Cabinet approves signing of Memorandum of Understanding between India and Armenia on cooperation on youth matters
On June 14, 2017, Union Cabinet was apprised about an Memorandum of Understanding which has already been signed in April 2017, between India and Armenia for cooperation on youth matters.
More Information about MoU between India and Armenia on cooperation on youth matters:
- The objective of the MoU is to strengthen and encourage cooperation between the two countries on youth matters through participation in events and activities, information and knowledge sharing and youth exchanges between the two countries.
- The areas of cooperation on Youth matters includes exchanges of youth, representatives of youth organizations, and government officials in-charge of youth policy-making.
- This MoU shall remain in force for a period of five years.
Quick Facts about Armenia:
- Capital: Yerevan
- Currency: Armenian dram
- Current President: Serzh Sargsyan
- Current Prime Minister: Karen Karapetyan
Cabinet approves proposal to introduce the Financial Resolution and Deposit Insurance Bill 2017
Union Cabinet has approved the proposal to introduce a Financial Resolution and Deposit Insurance Bill, 2017.
Salient Features of Financial Resolution and Deposit Insurance Bill, 2017:
- The Bill would provide for a comprehensive resolution framework for specified financial sector entities to deal with bankruptcy situation in banks, insurance companies and financial companies.
- It will complement recently enacted the Insolvency and Bankruptcy Code, 2016 for the insolvency resolution of non- financial entities.
- The bill seeks to give comfort to the consumers of financial service providers in financial distress.
- It also aims to inculcate discipline among financial service providers in the event of financial crises by limiting the use of public money to bail out distressed entities.
- The Bill is expected to strengthen and streamline the current framework of deposit insurance for the benefit of a large number of retail depositors.
Cabinet approves signing of Memorandum of Understanding between India and Bangladesh for promoting cooperation in the field of Information Technology and Electronics
On June 14, 2017, Union Cabinet was apprised about an Memorandum of Understanding (MoU) which has already been signed in April 2017, between India and Bangladesh for promoting cooperation in the field of Information Technology and Electronics (IT&E).
- The MoU was signed in April, 2017 between Ministry of Electronics and Information Technology, Government of India and Information and Communication Technology Division of Bangladesh.
- The MoU aims to explore business opportunities, IT&E market in Bangladesh by Indian IT companies and attract investment in Indian electronics and IT sectors in India which would indirectly generate employment opportunities.
- It will remain in force for a period of five years.
Quick Facts about Bangladesh:
- Capital: Dhaka
- Currency: Bangladeshi Taka
- Current Prime Minister: Sheikh Hasina