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ADB Approves $600 Million Loan to Bangladesh for Economic Reforms

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The Asian Development Bank (ADB) has approved a $600 million policy-based loan (PBL) to Bangladesh to implement structural reforms aimed at improving economic management and governance. This package will focus on increasing domestic resource mobilization, enhancing the efficiency of public investments, promoting private sector development, and fostering transparency and accountability. “ADB’s PBL promptly responds to Bangladesh’s immediate development financing needs following the political transition. The reforms target improvements in economic management and governance as well as economic diversification and competitiveness,” said ADB Regional Lead Economist Aminur Rahman. With one of the world’s lowest tax-to-GDP ratios at 7.4%, Bangladesh faces significant revenue mobilization challenges. This program seeks to address them through key policy actions such as digitalization, rationalization of tax incentives, and measures to enhance taxpayer morale. The loan will also prioritize public investment efficiency through increased digitalization and promote private sector growth by streamlining regulations and creating a level playing field. The initiative includes over 130 online integrated services to simplify business operations and enhance foreign direct investment processes. Reforming state-owned enterprises and advancing governance performance monitoring are central to the program. Additionally, it emphasizes “whole of government” logistics reforms to reduce trade costs and encourage export diversification, critical for sustainable economic growth. ADB’s efforts align with its broader mission of fostering a prosperous, inclusive, resilient, and sustainable Asia and the Pacific. Established in 1966, ADB is owned by 69 members, 49 of which are from the region, and remains committed to eradicating extreme poverty across Asia. This financial support underscores ADB’s collaboration with the International Monetary Fund, World Bank, and other development partners to drive economic transformation in Bangladesh. Source: ADB Org. Photo Credit: ADB Org.

Andhra Pradesh Government Dissolves Waqf Board for Improved Governance

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The Andhra Pradesh government has officially dissolved the AP State Waqf Board, citing the need for better governance, safeguarding of Waqf properties, and enhancing operational efficiency. The move comes after the revocation of a government order (GO) issued on October 21, 2023, which had previously appointed three elected members and seven nominated members to the 11-member board. In a new order issued on Saturday, K Harshavardhan, Secretary to the Government, stated: “In the interest of maintaining good governance, protecting Waqf properties, and ensuring the smooth functioning of the Waqf Board, the government hereby withdraws GO MS No. 47 (which constituted the board) with immediate effect.” The decision follows concerns raised by the Chief Executive Officer of the AP State Waqf Board, who informed the government of the board’s prolonged non-functionality. Additionally, multiple writ petitions challenging the legality of the previous GO had been filed in the High Court, prompting the state to reconsider the board’s structure. The High Court’s observations in these petitions played a critical role in influencing the government’s decision to dissolve the board, the order added. This action underscores the state’s intent to address inefficiencies and legal ambiguities that have hindered the Waqf Board’s performance. It remains to be seen how the government will restructure the board to ensure better governance while addressing the legal and administrative concerns raised during this process. Source: Business Standard Photo Credit: Business Standard

Cabinet Approves ₹8,232 Crore for 85 New Kendriya Vidyalayas and 28 Navodaya Vidyalayas

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The Indian government has approved a budget of ₹8,232 crore to establish 85 new Kendriya Vidyalayas (KVs) and 28 Navodaya Vidyalayas (NVs), a decision taken during the Cabinet Committee on Economic Affairs meeting chaired by Prime Minister Narendra Modi. The move is set to provide access to quality education for over 98,240 students across the country. Union Minister Ashwini Vaishnaw announced that this expansion marks a significant milestone in extending the reach of KVs and NVs, which are among the most sought-after schools in India due to their innovative teaching methods and excellent academic track records. The decision includes the creation of 5,388 direct permanent employment opportunities through new KVs, with each school employing approximately 63 staff members. An additional 33 posts will be created through the expansion of an existing KV in Shivamogga, Karnataka. Similarly, the 28 new NVs will provide direct employment to 1,316 individuals while accommodating 15,680 students, primarily from rural areas. Construction and related activities for the schools are also expected to generate numerous employment opportunities for skilled and unskilled workers, further boosting economic growth. Jammu and Kashmir will see the highest number of new KVs (13), followed by Madhya Pradesh with 11 and Rajasthan and Arunachal Pradesh with eight each. Among NVs, Telangana leads with seven new schools, followed by six in Assam. The initiative aligns with the National Education Policy (NEP) 2020, as nearly all new KVs and NVs will be designated as PM SHRI schools, serving as model institutions showcasing NEP implementation. Kendriya Vidyalayas cater primarily to children of Central Government employees, including defense and paramilitary personnel, while NVs focus on providing quality education to talented rural students. This expansion underscores the government’s commitment to making quality education accessible across urban and rural India. Source: Indian Expr Photo Credit: Indian Expressess

Banking Laws (Amendment) Bill Aims to Strengthen Governance and Enhance Customer Experience

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The Banking Laws (Amendment) Bill, 2024, presented by Finance Minister Nirmala Sitharaman in the Lok Sabha, introduces significant reforms to enhance governance in the banking sector and improve customer convenience. The bill proposes 19 amendments across key legislations, including the Reserve Bank of India Act, 1934; the Banking Regulation Act, 1949; and acts governing the State Bank of India and public sector banks. Key changes aim to: Strengthen Governance: Improve audit quality, reporting consistency, and depositor protection. Enhance Customer Convenience: Allow account holders up to four nominees and redefine ‘substantial interest’ limits for directorships, raising the threshold from ₹5 lakh to ₹2 crore. Safeguard Investor Interests: Transfer unclaimed dividends, shares, and bond-related interests to the Investor Education and Protection Fund (IEPF) with provisions for claims or refunds. Sitharaman highlighted the evolving banking sector’s need for robust reforms. “These amendments will improve governance, safeguard investors, and provide enhanced customer convenience,” she said. For cooperative banks, the amendments increase director tenure from 8 to 10 years, align with constitutional reforms, and grant Central Cooperative Bank directors eligibility to serve on State Cooperative Bank boards. Additional proposals include: Auditor Remuneration Flexibility: Empowering banks to decide statutory auditor payments. Regulatory Compliance Simplification: Redefining reporting dates to the 15th and last day of every month, replacing the current second and fourth Fridays. These reforms are poised to ensure better protection for depositors, streamline regulatory frameworks, and improve operational efficiency across India’s banking landscape. Source: Indian Express Photo Credit: Indian Express

Uttar Pradesh Declares Maha Kumbh Area as New District Ahead of 2025 Mega Event

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In preparation for the Maha Kumbh Mela 2025, the Uttar Pradesh government has declared the Maha Kumbh area as a new district. The announcement, formalized through a government order issued late Sunday night, aims to enhance the administrative efficiency and organization of the grand religious event. The newly created district will be called Maha Kumbh Mela District. District Magistrate Ravindra Kumar Mandad issued the notification, citing powers under the Uttar Pradesh Prayagraj Mela Authority Act, 2017. According to the order, the Mela Adhikari will function as the Executive Magistrate, District Magistrate, and Additional District Magistrate within the newly designated district, equipped with full authority under the Indian Civil Defense Code, 2023, and other applicable laws. The district will encompass 67 villages from Prayagraj’s existing tehsils, including 25 villages from Sadar, three from Sorav, 20 from Phulpur, and 19 from Karchana block. This realignment is aimed at streamlining governance and ensuring seamless arrangements for the anticipated influx of over 400 million devotees during the event, which is scheduled for January 2025. The Maha Kumbh Mela is one of the largest religious gatherings in the world, and the creation of this dedicated administrative unit underscores the government’s commitment to effective event management. This move is expected to facilitate better crowd control, resource allocation, and infrastructure development for the pilgrims. With this proactive measure, Uttar Pradesh positions itself to handle the logistical and spiritual needs of one of India’s most iconic cultural events. Source: Zeebiz Photo Credit: Zeebiz

Adani Group Faces Corporate Governance Crisis; Fitch Places Key Stocks on ‘Watch Negative’

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The Adani Group is grappling with intensified corporate governance concerns following bribery charges against key executives of Adani Green Energy Limited (AGEL) by U.S. authorities. In response, Fitch Ratings placed Adani Energy Solutions Limited (AESL) and Adani Electricity Mumbai Limited (AEML) on a “Rating Watch Negative,” signaling a potential downgrade of their ‘BBB-‘ ratings. US Charges Spark Governance Concerns The allegations, tied to a 2021 offshore note offering, include bribery and misleading investors. With two accused executives linked to the Adani founding family, the controversy has amplified fears of systemic governance risks across the conglomerate. Fitch warned that any conviction or evidence of weak governance could significantly pressure ratings. Liquidity Remains Strong, But Risks Loom Fitch noted that AESL and AEML maintain robust liquidity, with AESL raising $1 billion via qualified institutions placement for near-term projects. AEML benefits from regulatory protections for operating costs. However, Fitch cautioned about increased reliance on onshore funding, which could elevate borrowing costs and refinancing risks in the medium term. Global Fallout The charges have drawn sharp reactions from international stakeholders. Total Energies has halted investments in Adani projects, and ESG rating agency Morningstar Sustainalytics is reviewing risks associated with Adani Green. Adani-linked dollar bonds, which initially plummeted, showed signs of stabilization but continue to face scrutiny. Future Challenges The indictment’s ripple effects extend beyond the group’s finances, potentially pressuring capital inflows and impacting India’s currency if funding risks persist. While the Adani Group has denied the allegations as “baseless” and pledged legal action, the conglomerate faces mounting global scrutiny. The coming weeks will test Adani’s ability to address governance issues and reassure investors, as reputational and financial challenges intensify. Source: Zeebiz Photo Credit: Zeebiz

AI Governance Market to Reach $3,594.8 Mn by 2033, Growing at 39.0% CAGR

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The global AI Governance Market is poised for substantial growth, with its size projected to increase from USD 185.5 million in 2024 to USD 3,594.8 million by 2033, according to a report by Dimension Market Research. This represents a remarkable compound annual growth rate (CAGR) of 39.0% during the forecast period. AI governance focuses on creating robust frameworks to regulate the development, deployment, and usage of AI technologies, ensuring compliance with ethical guidelines and addressing concerns around privacy, transparency, fairness, and accountability. Key Insights from the Report: Market Drivers: Rising adoption of AI across industries is fueling demand for governance frameworks. Organizations are prioritizing ethical AI, regulatory compliance, and risk management to ensure responsible AI deployment. Regional Highlights: The U.S. AI governance market is expected to reach USD 1.3 million by 2024, growing at a CAGR of 13.4%. North America is projected to hold a 32.9% revenue share in 2024, driven by advanced AI adoption and regulatory initiatives. Market Segments: The software segment is anticipated to dominate the AI governance market in 2024. Large enterprises will likely lead in adoption, with government and defense sectors contributing the largest revenue share. Emerging Trends in AI Governance: Explainability in AI Systems: Increased focus on transparent decision-making processes in critical sectors. Ethical AI Guidelines: Organizations are emphasizing fairness, accountability, and transparency in AI operations. Global Collaboration: Partnerships between tech companies, regulators, and academic institutions aim to create standardized practices for responsible AI. Regulatory Advances: Europe and North America are at the forefront of implementing comprehensive AI governance frameworks. Competitive Landscape: The AI governance market is intensely competitive, with major players like IBM Corp, Alphabet Inc, Microsoft Corp, Amazon Web Services, and SAS Institute leading the charge. Companies are investing heavily in technologies addressing bias detection, transparency tools, and data privacy. Startups are also entering the market, offering innovative and cost-effective solutions. With the increasing adoption of AI technologies, the need for robust governance frameworks has become paramount. The projected growth of the AI governance market underscores its critical role in ensuring responsible, ethical, and transparent AI deployment across industries. Source: telanganatoday Photo Credit: telanganatoday

Moody’s to Review Adani Group’s Governance Following Bribery Allegations

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Global credit rating agency Moody’s has announced a governance review of the Adani Group following allegations of bribery against its chairman Gautam Adani and other senior officials. U.S. prosecutors have accused the billionaire and his associates of orchestrating a scheme to pay over $250 million (approximately ₹2,100 crore) in bribes to Indian officials for favorable solar power contract terms. Moody’s Ratings issued a statement describing the charges as “credit negative” for the group’s companies, signaling potential repercussions for the conglomerate’s financial health and investor confidence. “Our primary focus is on the group’s ability to access capital to meet liquidity requirements and its governance practices,” the agency said. The indictment has raised fresh concerns over corporate governance within the Adani Group, which operates across sectors such as ports, energy, and infrastructure. The alleged bribery scheme, if proven, could tarnish the group’s reputation and strain its relationship with global investors. The allegations add to the challenges facing the Adani Group, which has already been under intense scrutiny following the Hindenburg Research report earlier this year. The report accused the group of financial irregularities and stock manipulation, leading to significant market volatility and questioning of the group’s governance standards. The new bribery charges, involving high-level officials, pose further risks to the group’s operations and financial standing. Moody’s review will likely consider the impact on the group’s ability to secure funding and its adherence to governance protocols in light of these developments. This latest controversy underscores the increasing importance of robust corporate governance in maintaining credibility and stability in global markets. The Adani Group has yet to issue a detailed response to the charges. Source: telanganatoday Photo Credit: telanganatoday

PM Modi Highlights Role of Digital Public Infrastructure and AI in Global Inclusive Growth

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Prime Minister Narendra Modi emphasized the transformative potential of Digital Public Infrastructure (DPI), Artificial Intelligence (AI), and data-driven governance in achieving inclusive global growth. Responding to a post by WTO Director-General Dr. Ngozi Okonjo-Iweala, the PM highlighted their pivotal role in reshaping lives worldwide: “Thank you for your support and valuable insights. The emphasis on Digital Public Infrastructure, AI and data for governance is key to achieving inclusive growth and transforming lives globally.” Strengthening SDGs with Technology PM Modi’s vision aligns with global initiatives like the Global Digital Compact and the Global DPI Summit 2024, which underscore the need for equitable deployment of technology. The seamless integration of DPI and AI is proving instrumental in creating jobs, enhancing healthcare and education, and reducing inequality. Technology, when inclusive and citizen-centric, unlocks new avenues for growth and strengthens faith in democratic principles. Systems built with open, interoperable, and scalable designs enable businesses of all sizes to connect efficiently, empowering families and communities while fostering economic resilience. Prioritizing Privacy and Trust PM Modi stressed the need for transparent, secure, and equitable data governance principles to protect privacy and intellectual property while ensuring trust in digital systems. Foundational and frontier AI models trained on diverse datasets were highlighted as critical for accommodating global cultural and linguistic diversity. Indian Culture Resonates Globally In a separate post, PM Modi lauded Jonas Masetti and his team for promoting Indian culture through their Sanskrit performance of the Ramayan. “It is commendable how Indian culture is making an impact all over the world. I had mentioned Jonas during a #MannKiBaat program for his passion towards Vedanta and the Gita,” the PM said. This dual emphasis on leveraging modern technology and celebrating cultural heritage underscores India’s holistic approach to sustainable, inclusive development on the global stage. Source: pmindia.Gov.in Photo Credit: pmindia.Gov.in

RBI Governor Urges Banks to Prioritize Governance and Ethical Practices

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RBI Governor Shaktikanta Das on Monday called upon private sector banks to bolster their internal governance frameworks and curb unethical practices. Speaking at the Conference of Directors of Private Sector Banks in Mumbai, Das emphasized the long-term risks of practices like mis-selling products and opening accounts without proper KYC verification. “While such practices may yield short-term gains, they ultimately expose banks to reputational damage, supervisory scrutiny, and financial penalties,” he noted, urging bank boards to lead the charge in ensuring ethical operations. Das highlighted the need for banks to carefully structure employee incentives to avoid encouraging unethical behaviors. He also pointed out that the Indian banking sector is at a juncture of both opportunities and challenges, with improving financial indicators reflecting strong efforts by bank management and boards. To maintain this momentum, the governor underscored the importance of leveraging strong fundamentals to build resilience and grow sustainably. “Good times are the best times to reinforce resilience and fortify defenses,” he remarked. The governor also touched upon emerging challenges posed by technological advancements, the rise of fintech, third-party dependencies, and climate change. He urged bank boards to act as guiding beacons in this dynamic environment, helping navigate risks while steering towards stable and sustainable growth. Das reaffirmed the RBI’s commitment to supporting the banking sector in its pursuit of innovation and resilience. He emphasized that a proactive approach to governance and ethics is crucial for fostering trust and stability in India’s rapidly evolving financial landscape. Source: CNBCTV 18 Photo Credit: CNBCTV 18