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RBI cautions government over NPA spike in MUDRA loans

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New Delhi, Jan 13 The Reserve Bank of India (RBI) has raised a red-flag on the spike in non-performing assets (NPAs) under the government’s flagship scheme to support micro enterprises in the country — the Pradhan Mantri Mudra Yojana.

According to Finance Ministry sources, RBI has cautioned the ministry that the scheme might turn-out to be the next big source of NPAs, which have plagued the banking system.

The central bank has flagged that bad loans under PMMY have risen to Rs 11,000 crore.

As per the annual report of PMMY, 2017-18, total disbursements under the scheme stood at Rs 2.46 trillion in FY 18.

Out of this, 40 per cent were disbursed to women entrepreneurs and 33 per cent to social categories. More than 4.81 crore micro borrowers have benefited through PMMY during the year FY2017-18.

The PMMY was launched on April 8, 2015. Under the scheme, banks are required to finance micro and small entrepreneurs for up to Rs 10 lakh. Loans can be granted under three categories – up to Rs 50,000 under ‘Shishu’; Rs 50,001-Rs 5 lakh under ‘Kishore’ and between Rs 5,00,001 and Rs 10 lakh under ‘Tarun’ category.

In addition, RBI’s caution comes at a time when the country’s financial system in reeling under sevier stress due to the IL&FS crisis which continues to hurt banks with impairments, the most recent case being IndusInd Bank.

On January 9, IndusInd Bank in its latest quarterly earnings result statement without naming the IL&FS Group, said: “Advances granted to various companies and SPVs belonging to a Group in the infrastructure sector against certain identified cash flows and pertaining to specific assets are ‘Standard’ as at December 31, 2018 on the basis of the conduct of the accounts till date.

“Since October 1, 2018, certain governance and management changes have taken place in the Group and measures to turn it around through a Resolution Plan are underway.”

The bank said it was monitoring the developments and implications of the ‘Resolution Plan’.

“In the interim, as a prudential measure, the bank has made a contingent provision of Rs 255 crore on these ‘Standard’ assets during the quarter ended on December 31, 2018, in addition to an amount of Rs 275 crore made during the quarter ended on September 30, 2018. Total provisions attributable to this exposure is Rs 600 crore,” the statement added.

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Speaker Pelosi orders Trump’s impeachment to proceed

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Trump Speaker PelosTrump Speaker Nancy Pelosii

New York, Dec 5 : House of Representatives’ Democrat Speaker Nancy Pelosi ordered the impeachment to proceed on Thursday with the framing of charges of jeopardising national security against President Donald Trump for a trial in the Senate.

The historic announcement came after about two months of investigation by House of Representatives, making it only the third time in the 243-year history of the US that a President would be impeached.

“The President leaves us no choice but to act, because he is trying to corrupt, once again, the election for his own benefit,” she said asking the House of Representatives committee leaders to proceed with the drafting of the Articles of Impeachment, which is a charge sheet for the Senate to try Trump.

“The President has engaged in abuse of power undermining our national security and jeopardising the integrity of our elections,” Pelosi said in a Washington press conference.

She ended her announcement with an appeal to religion, saying, “So help me God,” after saying the Democrats were “prayerful”.

Before her announcement, Trump threw a challenge at her in a tweet: “if you are going to impeach me, do it now, fast, so we can have a fair trial in the Senate, and so that our Country can get back to business.”

Trump is relying on the Senate, where his party has a majority to throw out the charges and acquit him.

The Republicans will be able to call the witnesses blocked by the Democrats in the House panels’ hearings to testify.

Trump tweeted that they would call former Vice President Joe Biden and his son Hunter, House Intelligence Committee Chair Adam Schiff, and Pelosi.

He added that this “will reveal, for the first time, how corrupt our system really is. I was elected to ‘Clean the Swamp,’ and that’s what I am doing”.

Pelosi’s announcement sets the Democrat-controlled House firmly on the path to early impeachment, with a vote likely before it adjourns for the Christmas vacation.

A Senate trial would then follow in January in an election year.

Only two Presidents, Andrew Johnson in the 19th century and Bill Clinton in the last have been impeached and both were acquitted by the Senate.

Pelosi had to make a firm statement because some members of her party in swing constituencies, which were Republican but moved to Democrats in last year’s elections, were apprehensive that the impeachment may work against them next year.

The nation’s polarisation is reflected in the impeachment issue with an almost even split in public opinion. According to the latest RealClear Politics aggregation of polls, there is 48.3 per cent support for impeachment and 44.6 per cent against, with a narrow spread of 3.7 per cent.

Mindful of this, Pelosi said: “Sadly, but with confidence and humility, with allegiance to our founders and a heart full of love for America, today I am asking our chairman to proceed with articles of impeachment.”

She likened Trump’s conduct to the late 18th century British monarch George III against whom Americans rose in revolt because he was considered above the law.

The founders of the US established the impeachment process to ensure that the President was not above the law like a king, she said.

The House Judicial Committee held a public hearing on Wednesday where four law professors testified on the constitutional and legal aspects of impeachment.

The three summoned by the Democrats made the case for Trump’s impeachment while the one called by the Republicans opposed it.

The Judicial Committee picked up the impeachment process from the Intelligence Committee, which delivered a 300-page report on Tuesday outlining the charges against Trump.

The Intelligence Committee accused him of placing “his own personal and political interests above the national interests of the United States.”

It said his “scheme subverted US foreign policy toward Ukraine and undermined our national security in favour of two politically motivated investigations that would help his presidential re-election campaign”.

At the heart of the charges is Trump asking Ukrainian President Volodymyr Zelensky “as a favour” to inquire into the dealings of former Vice President Biden and his son in Ukraine, and into alleged interference by that country in the 2016 elections.

Joe Biden also sought the removal of the prosecutor looking into the gas company, Burisma.

The Trump administration delayed military aid to Ukraine, which the Democrats say was done to force the country to launch the probes, but Republicans contend was done to ensure that there was no corruption.

Democrats say the request to investigate the Bidens was seeking foreign interference in US elections because the former Vice President is the front-runner for Democratic Party nomination to run against Trump.

The delay in aid, Democrats say, threatened US national security as it was beneficial to Russia.

Zelensky has denied that he felt he was under pressure from Trump to carry out the inquiries.

Republicans point out that the aid was released without Zelensky ordering the probes.

Hunter Biden who was removed from the Navy for alleged drug use and had no experience in the energy business was appointed to the board of a gas company with a monthly payment of $83,000 while the then Vice President was overseeing US relations with Ukraine.

(Arul Louis can be contacted at [email protected] and followed on Twitter @arulouis)

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US unemployment rate falls to 50-year low

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The U.S. unemployment rate fell in September to a new five-decade low of 3.5%, while employers added a modest 136,000 jobs.

The Labor Department says that despite the ultra-low unemployment rate, which was down from 3.7% in August, average hourly wages slipped by a penny. Hourly pay rose just 2.9% from a year earlier, lower than 3.4% at the beginning of the year.

Hiring has slowed this year as the U.S.-China trade war has intensified, global growth has slowed, and businesses have cut back on their investment spending. Still, hiring has averaged 157,000 in the past three months, enough to lower the unemployment rate over time.

The unemployment rate for Latinos fell to 3.9%, the lowest on records dating from 1973.

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Trump embarrassed by TV channel

As Trump was speaking to the media after meeting Zelensky to clarify his position, MSNBC host Nicolle Wallace cut into it, saying: “We hate to do this but the President isn’t telling the truth.”

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New York, Sep 26 : US President Donald Trump was subjected to an embarrassment when the MSNBC news channel cut away from his press conference while he was speaking on the controversy surrounding him over the Ukrainian probe against former Vice President Joe Biden.

Trump on Wednesday was addressing the press conference against the backdrop of impeachment proceedings announced against him by House Speaker Nancy Pelosi following allegations that he put pressure on the Ukrainian President Volodymyr Zelensky to order a probe against Biden whose family has business interests there.

The allegation against Trump came to light because of a whistleblower and a transcript of the conversation between him and Zelensky in July, which has become public.

As Trump was speaking to the media after meeting Zelensky to clarify his position, MSNBC host Nicolle Wallace cut into it, saying: “We hate to do this but the President isn’t telling the truth.”

She added that Trump was trying to do it to deflect the attention from his impeachment.

According to the transcript of the telephonic conversation that has gone public, Trump is heard asking Zelensky to “do us a favour”, after the latter expresses gratitude for the military aid the US provided to his country.

Trump’s words of “do us a favour” is seen as a quid pro quo for the American military aid, because of which the impeachment proceedings have been announced.

After Wallace cut the press conference, her guest on the programme, justice and security analyst Matthew Miller, rebuked Trump for saying that Biden and his son had done wrong.

“This story has been looked at and thoroughly debunked by everyone involved,” Miller said, adding the real issue was whether Trump’s conduct is “impeachable”.

Trump is facing problem at a time when he is in New York to attend the UN General Assembly.

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