Week 5

Captain RBI 💸

August 08, 2020

Good Morning,

Welcome! I hope you have your “Subah Kee Chai” ready and you're excited to read your weekly 10-minute digest. 

This week saw the introduction of the new RBI Loan Restructuring Scheme. It also saw heavy rainfall and winds destructively hit the streets of Mumbai. Today's stay-at-home tips help you stay hygienic while grocery shopping, and lastly, India will be hosting the T20 World Cup in 2021. 

Before we dive into India's top news stories. I wanted to highlight an extremely unfortunate incident that occurred in Beirut, Lebanon. A huge explosion claimed the lives of 100 people, left 4000 injured, and destroyed the beautiful city. I encourage my readers to join me in praying for the individuals who lost their loved ones, and to keep Lebanon in our hearts. 

I hope you enjoy today's newsletter,

Now let’s get into the news.

Markets

Both equity markets finished in the green this week, however, the constant rise slowed on Friday due to weak global indices and a rise in COVID-19 cases making investors uncertain. Trump's administration on Wednesday announced that the USA would crackdown on Chinese companies creating an uncertain aura in the market sentiment mid-way through the week.

, the last day of the trading week. Titan, M&M, and Infosys finished the week among the top losers. Gold prices continue to rise week after week, however the price of crude oil slumped nearing the end of the week. 

India, for the first time, reported 60,000 positive COVID-19 cases in less than 24 hours. The countries total tally crossed 20 lakh cases on Friday. 

Hey, can I apply for a loan now?

For the first time since the 2008 financial crisis, the Reserve Bank of India (RBI) announced an across-the-board

to include individuals in addition to the airline, hotel and travel sector hit by the pandemic. As India is on track to face one of its worst economic performances, this step, taken by the Central Bank, is an attempt to shoulder the burden the Government is facing. 

RBI's Agenda

Due to a demoralizing consumer-confidence index and a staggering economy, the RBI on Thursday announced major steps that will be taken to salvage a part of the Indian economy in an attempt to stimulate growth for the next fiscal year. 

One of the

(6.1%) to sit between 2-5% by the end of the year. Inflation sat at its highest in April-May, however, the RBI Governor highlighted that the spike in food prices and other cost-push pressures were the sole reasons. The RBI aims to revive growth and mitigate the risks of COVID-19 on the economy while ensuring that inflation sits within the required bracket to meet future targets. 

As mentioned earlier, the second aim is to widen the availability of loans to recover COVID-impacted businesses. Under this wide umbrella, the RBI is specifically including

under the priority sector debt list for banks. RBI Governor Shaktikanta Das said that classifying underprivileged regions under the priority sector debt gives greater attention to districts that suffer from low credit flows. 

In addition, this move is candy floss for start-ups as they can finally worry less about selling their companies off to venture capitalists to generate capital. Das highlighted the struggles start-ups face when securing bank loans due to their aims to expand growth rather than increase profitability. Under the new loan scheme, however, start-ups can borrow at better terms and not worry about their business being overly diluted. 

Home/Personal Loans

Individuals with

will have to wait a little longer to know the reliefs available if they are unable to pay due to financial struggles resulting from the pandemic. A majority of older home loans that haven't been refinanced sit at interest rates of 8%, with the lowest being 6.7%. If restructuring is allowed, loan repayment extensions up to two years could be provided. For newer borrowers, lenders may also provide flexible EMI's, which allows borrowers to repay whenever they receive money over a period of two years rather than on a fixed due date. 

Not beneficial for everyone...

A majority of

will not benefit from the RBI's loan restructuring scheme as they have failed to pay their previous installments on time. Defaulting loans for more than 30 days makes you ineligible under the restructuring scheme. 

Mumbai Floods

On Wednesday, Mumbai unexpectedly faced

since 1974. 550 mm of rain was reported across the city in a span of 72 hours. The heavy rainfall was accompanied by rapid winds causing widespread destruction in major parts of Mumbai. The Weather Bureau stated that these floods were worse than the ones faced in 2005. Countless trees were toppled, roadside shops were flooded knee-deep with water and many individuals were left stranded due to road closures. 

South Mumbai, in particular,

. Pedder Road, one of the key central roads for a number of VIP's is forced to shut for 3 months due to the hill adjacent to the road suffering a major landslide. Similarly, the road running parallel to the famous

suffered an earthquake size crack forcing the road to temporarily close as well. In addition, trees reportedly fell onto train lines connecting Marine Lines and Churchgate causing a minor fire over the train tracks. Lastly and shockingly, the emergency ward at JJ hospital was flooded as well causing widespread panic to quickly evacuate the patients to safety. 

Unfortunately,

in Santacruz as they were swept away into the Santacruz drain after a gush of water destroyed their homes. A number of people were forced to shelter at their offices due to their cars breaking down, road closures and public transport coming to a halt. 

Sports

Hockey

Indian National Hockey team captain Manpreet Singh

for the novel coronavirus along with 4 other players. All five players are currently quarantined at the Sports Authority of India (SAI) campus in Bengaluru. The players initially suffered from mild symptoms, however, are showing great signs of recovery. After completing the required quarantine period and testing negative for the virus, the players will join their fellow teammates and re-commence their training camp for the upcoming Tokyo Olympic games in 2021. 

T20 World Cup

After facing a major bump in their schedule, the ICC board decided to allow

to host the postponed T20 World Cup in 2021. Next year's original hosts, Australia, will now host the T20 competition in 2022. The format of the event will remain the same, and all the teams that qualified for the 2020 world cup will participate in 2021. 

  Mumbai City FC

Portuguese international midfielder

, who signed for Mumbai City FC two years ago, has decided to part ways upon mutual agreement with the club. The veteran midfielder played all 18 games in his debut season, however, his second year was cut short due to an injury. Over two seasons, he scored 3 goals and totaled 5 assists.   

Stay-at-home Tips

A vegetable, from the time it is harvested till it reaches the shelf at your local grocery store, comes in contact with a number of people. Health and hygiene are of utmost importance in the present day due to the looming pandemic, and as a result here are a few

to avoid the risk of being exposed to the novel coronavirus.

1. Constant sanitization: When you are outside your body is exposed to a number of bacteria and viruses. Constantly sanitizing your hands will prevent the bacteria from affecting your health. It is also important to note, that when you are outside it is best to avoid touching your face as you may have touched contaminated surfaces. 

2. Once home from your grocery shop, place all your items on the floor. Germs can stay on items for several hours posing a significant risk. All the items should be disinfected before being returned to their designated places within your home. 

3. It is also important to immediately go for a shower and put on a fresh set of clothes once you are home. Place your contaminated clothes into a bucket filled with a mixture of hot water and soap to kill any living germs. Lastly, your shoes should be sprayed with a disinfectant before being placed onto your shoe rack. 

4. If you are using disposable plastic bags to hold your groceries, ensure that you dispose of the bags immediately after unpacking. The Journal of the American Medical Association (JAMA) highlights the potential germs disposable bags can carry. If using a reusable bag, wash it thoroughly after unpacking your groceries. 

Lastly, it is extremely important to wear a mask whenever you step outside to protect yourself and others. Wash your mask immediately after returning home, if you are using a reusable mask. 

Stay safe! 

Other News

1. On Friday, an

from Dubai to Kozhikode, unfortunately, overshot the runway and crashed. There were 200 people on board the repatriation flight. 18 people, including both pilots, sadly lost their lives. 

2. On Thursday, Yes Bank stated that

through the open stock market.

3. On Friday, the nation celebrated

. This day commemorates the Swadeshi Movement launched in 1905 to raise awareness about the handloom industry and its contribution to socio-economic development.

4.

, which runs the Taj hotel chain, reported a 313 crore loss for the first quarter.

5.

as part of its goal to invest $10 billion into India over the next 5 to 7 years.   

Quiz

Quiz time! 

This week's a tough one, let's see if you get it. 

What same three letters fit into the following five combinations to form five words? 

1. E _ _ _ P

2. _ _ _ C K 

3. S _ _ _ S H 

4. L I _ _ _ D

5. T E _ _ _ L A

Get thinking! 

See you next week!

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See you next week!

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Quiz Answer: 'QUI'

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Written by: Adnan Bahrainwala (Founder of Subah Kee Chai)