Question

Here you can post link to recent newspaper articles on money and banking and your review (in at least 250 words).

The article should not been more than a week hold on the day you post the review.

In order to receive good grade you must post at least two reviews of articles.

Answer 1

Article 1

Reduced EPF contribution: How you will get impacted? Avaialble at : https://www.financialexpress.com/money/reduced-epf-contribution-how-you-will-get-impacted/1968806/

As per Employees Provident Fund and Miscellaneous Provisions Act, 1952, 12% of the basic wages, dearness allowance and retaining allowance from the employer's side and from the employee's side each is being contributed towards the Provident Fund and Pension Fund of the employees. It would act as a major relief during the post retirement stage.

As a result of the Covid19 crisis and the lockdown imposed by the government, the government has given relaxation and brought down the contribution from 12% to 10%. This would increase the disposable income received in the hands of the employees. As a result their financial condition improves. But it becomes a meagre amount and does not bring much difference in the amount received as tax is being deducted from this disposable income. So overall it does not bring much relief to the common public.

Article 2

Retail, MSME loans to get cheaper as RBI cuts repo rate in surprise action Available at : https://www.business-standard.com/article/economic-revival/retail-msme-loans-to-be-cheaper-as-rbi-cuts-rates-to-make-life-easy-120052201611_1.html

Due to lowering of GDP growth rate and mass unemploymnet prevailing in the economy amid COVID19 pandemic, RBI has announced 40 basis point cut in repo rate and brought it down to 8.10 percent. Repo Rate is the rate of interest at which RBI lends money to the commercial banks. As a result the commercial banks offer loans to the common public to grow their MSME at a cheaper rate. This would act as a booster to the growth of MSME and in turn offer large scale of employment opportunities to the common public. It would also contribute towards the growth rate of GDP.