Current Affairs Update – 8th – 9th May, 2016

Hello and welcome to ExamPundit. Here are the Important Current Affairs of 8th May and 9th May, 2016. These are important for the upcoming SBI Clerk 2016 and SBI PO 2016 and UIIC AO 2016.


Current Affairs Update – 8th – 9th May, 2016

  1. The Reserve Bank of India (RBI) on 28 April 2016 released consultation
    paper on Peer to Peer (P2P) lending to classify it as Non-Banking Financial
    Company (NBFC)
    . The suggestions or comments on the Paper may be sent
    to Department of Non-Banking Regulation, RBI on or before 31 May 2016.
  2. The Reserve Bank of India (RBI)
    on 5 May 2016 released Draft Guidelines for on tap Licensing of Universal Banks
    in the Private Sector
    . It also sought views and comments on the
    draft guidelines from banks, non-banking financial institutions, industrial
    houses, other institutions and the public at large latest by 30 June 2016.
  3. The Department of Industrial
    Policy & Promotion (DIPP) under Union Ministry of Commerce & Industry permitted
    100% foreign direct investment (FDI) into asset
    reconstruction companies (ARCs) through automatic route
    .
  4. 112, the single emergency number
    that will help people to reach immediate services of police, ambulance and fire
    department will be operational throughout India from 1 January 2017.
  5. The Karnataka Government in the first week of May 2016 decided to establish
    Asia’s first-ever Rice Technology Park at Gangavati
    .
  6. Switzerland government on 4 May 2016 honoured the late bollywood
    film maker Yash
    Chopra
    with a special bronze statue.
  7. India is ranked at
    ninth position in crony-capitalism index that was released by the Economist in
    the first week of May 2016
    . India has a crony sector wealth accounting
    for 3.4 percent of the gross domestic product (GDP).
  8. SpaceX on 6 May 2016
    successfully launched the Japanese communications satellite, JCSAT14 on Falcon 9 rocket from Cape Canaveral, Florida.
  9. Number one seed Novac Djokovic on 8 May 2016 defeated Andy Murray 6-2, 3-6, 6-3
    to conquer the Mutua Madrid Open title in Madrid, Spain. Romanian tennis player
    Simona Halep on 7 May 2016 won the women singles title of the
    Madrid Open.
  10. The British Labour party’s Sadiq Khan on 6 May 2016 was elected new Mayor of London.
    His election as Mayor of London made him the first
    actively affiliated Muslim to become mayor of a major Western capital
    .
  11. Yesteryear’s Bollywood actor Shashi Kapoor’s biography titled Shashi Kapoor – the
    Householder
    , the Star was released on 6 May 2016.



Finance/Banking –
RBI releases consultation paper on Peer to Peer lending to classify it
as NBFC

  • The Reserve Bank of India (RBI)
    on 28 April 2016 released consultation paper on Peer to Peer (P2P) lending to
    classify it as Non-Banking Financial Company (NBFC). The suggestions or
    comments on the Paper may be sent to Department of Non-Banking Regulation, RBI
    on or before 31 May 2016.
  • The Consultation paper outlines
    the pros and cons of regulating the sector and proposes a suitable framework
    for regulating the activity.
  • It includes minimum capital,
    permitted activity, governance requirements, and fair practices code for customer
    dealing and data security.

RBI released draft guidelines for licensing of Universal Banks in
Private Sector

  • The Reserve Bank of India (RBI)
    on 5 May 2016 released Draft Guidelines for on tap Licensing of Universal Banks
    in the Private Sector.
  • It also sought views and comments
    on the draft guidelines from banks, non-banking financial institutions,
    industrial houses, other institutions and the public at large latest by 30 June
    2016.
  • RBI will issue the final
    guidelines will after receiving feedback, comments and suggestions on draft
    guidelines.

Salient features of the draft
guidelines:
Eligible Promoters:
i. Existing non-banking financial
companies (NBFCs) that are controlled by residents and have a successful track
record for at least 10 years.
ii. The residents, individuals or
professionals who have 10 years of banking and finance experience.
iii. Residents owned entities or
groups in the private sector which have a successful track record for at least
10 years.
Fit and Proper criteria
Promoter or promoting entity or promoter group should have a past record
of sound financials, credentials, integrity and have a minimum 10 years of
successful track record.
Corporate structure:
i. The requirement of
Non-Operative Financial Holding Company (NOFHC) is not mandatory for individual
promoters or standalone promoting or converting entities that do not have other
group entities.
ii. Individual promoters or
promoting entities or converting entities that have other group entities, shall
set up the bank only through an NOFHC.
iii. The NOFHC shall be owned by
the promoter/promoter group to the extent of not less than 51 per cent of the
total paid-up equity capital of the NOFHC.
  • Minimum capital requirement: The initial minimum paid-up voting
    equity capital for a bank shall be 5 billion rupees. Thereafter, the bank shall
    have a minimum net worth of 5 billion rupees at all times.
  • Foreign shareholding in the bank
    The foreign shareholding in the bank would be as per the existing
    foreign direct investment (FDI) policy. The aggregate foreign investment limit
    is 74 per cent.

Corporate governance prudential and exposure norms:
i. The bank shall comply with the
provisions of Banking Regulations Act, 1949 and the existing guidelines on
prudential norms as applicable to scheduled commercial banks.
ii. The bank is precluded from
having any exposure to its promoters, major shareholders who have shareholding
to the extent of 10 per cent or more of paid-up equity shares in the bank.
Business plan for the bank:  A realistic and viable business plan should be
submitted that can propose the bank’s ability to achieve financial inclusion.
Other conditions:  The bank shall get its shares listed on the
stock exchanges within six years of the commencement of business by the bank.
100% FDI through Automatic Route permitted in Asset Reconstruction
Companies

  • The Department of Industrial
    Policy & Promotion (DIPP) under Union Ministry of Commerce & Industry
    permitted 100% foreign direct investment (FDI) into asset reconstruction
    companies (ARCs) through automatic route.
  • In this regard the DIPP notified
    the Press Note 4 (2016 series) on 6 May 2016.

Key Highlights
  • Person resident outside India can
    invest in the capital of ARCs registered with Reserve bank of India, up to 100
    per cent on the automatic route. Earlier, it was 49 per cent through automatic
    route and beyond 49 percent through government route.
  • It stated that total share
    holding of an individual foreign institutional investor (FII)/foreign portfolio
    investment (FPI) shall be below 10 per cent of the total paid-up capital.

India –
Dial 112 for any Emergency throughout India from 1 January 2017

  • 112, the single emergency number
    that will help people to reach immediate services of police, ambulance and fire
    department will be operational throughout India from 1 January 2017.
  • Single emergency number 112 of
    India will be similar to the ‘911’ all-in-one emergency service in the United
    States.

Highlights of its Usability
  • The service will also be
    accessible even through those SIMs and landlines whose outgoing call facility
    has been stopped or temporarily suspended.
  • A person in distress will need to
    call only 112, which will direct the call to concerned departments immediately
    for help.
  • All existing emergency numbers
    will be phased out within a year of rolling out 112, depending upon the
    awareness about this new facility.

Asia’s first Rice Technology Park to be established in Gangavati,
Karnataka

  • The Karnataka Government in the
    first week of May 2016 decided to establish Asia’s first-ever Rice Technology
    Park at Gangavati.
  • Besides, a Maize Technology Park
    will also be established at Ranebennur in Haveri district.
  • The rice park is being
    established at Navali-Karatagi villages on the outskirts of Gangavati, and the
    maize park is to be come up in the APMC market yard at Ranebennur.

Key facts related to the establishment of parks
  • These parks will be established
    under public private partnership (PPP).
  • The establishment of the Rice
    Technology Park will help paddy cultivators in the Tungabhadra Command Area in
    Ballari, Raichur and Koppal districts.

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Awards & Honors –
Switzerland honours Yash Chopra with Bronze statue

  • Switzerland government on 4 May
    2016 honoured the late bollywood film maker Yash Chopra with a special statue.
  • The bronze statue of Yash Chopra
    which weighed about 250 kilos was inaugurated by his wife Pamela Chopra and
    daughter-in-law Rani Mukerjee.
  • This statue was installed at
    middle of the Interlaken which is inside the Kursaal area near the Congress
    Centre which is a prime, popular spot for the tourists.
  • He was honoured as he shot most
    of his romantic films in the lush mountains of Switzerland, which opened a
    legacy of South Asian tourists flocking to that country.
  • This is not the first time Yash
    Chopra has been honoured by the Interlaken government.
  •  Earlier, he was awarded with the honorary
    title of Ambassador of Interlaken in 2011.
  • And Jungfrau Railways named a
    train after him, which was an honour shared only with Adolf Guyer who was the
    founder of railway.
  • The five-star Victoria Jungfrau
    Grand Hotel & Spa in Interlaken also named a suite after him.

Indexes –
India ranks Ninth in Crony-Capitalism Index

  • India is ranked at ninth position
    in crony-capitalism index that was released by the Economist in the first week
    of May 2016. India has a crony sector wealth accounting for 3.4 percent of the
    gross domestic product (GDP).

Highlights of the Index
  • As per the latest
    crony-capitalism index the non-crony sector wealth in India amounts to 8.3 per
    cent of the GDP
  • India stood at the same ninth
    place in the previous 2014 rankings.
  • Russia topped the list and
    followed by Malaysia, the Philippines and Singapore.
  • Russia fares worst in the index,
    wealth from the country’s crony sectors amounts to 18 per cent of its GDP.

World –
SpaceX successfully launches Japanese JCSAT-14 Satellite

  • SpaceX on 6 May 2016 successfully
    launched the Japanese communications satellite, JCSAT-14 on Falcon 9 rocket
    from Cape Canaveral, Florida.
  • The satellite was place into its
    intended preliminary geostationary transfer orbit by SpaceX Falcon 9 rocket
    which was launched from Cape Canaveral Air Force Station in Florida, US.
  • The odds of a successful
    soft-landing were slim due to the mission requirements for the particular
    launch.

UN launches Multi-Partner Trust Fund for Zika virus response

  • United Nations (UN) on 6 May 2016
    announced the establishment of the UN Zika Response Multi-Partner Trust Fund
    (MPTF) to finance critical unfunded priorities in the response to the Zika
    outbreak.
  • The establishment of the fund was
    announced by UN Secretary-General Ban Ki-moon.

Objective of the Fund
  • The Fund aims to provide a rapid,
    flexible and accountable platform to support a coordinated response from the UN
    system and partners.
  • It will directly support the Zika
    Strategic Response Framework, developed by the World Health Organization (WHO)
    in consultation with UN agencies, partners and international epidemiological
    experts.

Flying Observatory SOFIA detects Atomic Oxygen in Martian Atmosphere
  • Atomic Oxygen was detected in the
    upper layers of the Martian atmosphere known as Mesosphere. This presence of
    Atomic Oxygen for the first time since the last observation 40 years ago was
    detected by an instrument onboard the Stratospheric Observatory for Infrared
    Astronomy (SOFIA).
  • Atomic oxygen affects how other
    gases escape Mars and therefore has a significant impact on the planet’s
    atmosphere.
  • The research was published in the
    journal Astronomy and Astrophysics.

Sports –
Novak Djokovic wins 2016 Mutua Madrid Open

  • Number one seed Novac Djokovic on
    8 May 2016 defeated Andy Murray 6-2, 3-6, 6-3 to conquer the Mutua Madrid Open
    title in Madrid, Spain.
  • It was Djokovic’s fifth win in
    the last 6 ATP 1000 competitions. With the win, he also reached a record 29
    Masters 1000 titles.
  • Mutua Madrid Open title was
    Djokovic’s second title on the Caja Mágica clay. He claimed the game in two
    hours and six minutes.

Romanian Simona Halep wins women singles of Madrid Open of tennis

  • Romanian tennis player Simona Halep
    on 7 May 2016 won the women singles title of the Madrid Open. The men’s singles
    title was won by Novak Djokovic of Serbia.
  • She defeated Dominika Cibulkova
    of Slovakia 6-2, 6-4 in the final played at Madrid, Spain.
  • This was the third Madrid title
    for World No. 6 Halep and her first title of 2016. Overall this was her 12th
    career title.

Appointments –
Sadiq Khan becomes first Muslim mayor of London

  • The British Labour party’s Sadiq
    Khan on 6 May 2016 was elected new Mayor of London. His election as Mayor of
    London made him the first actively affiliated Muslim to become mayor of a major
    Western capital.
  • Khan emerged victorious in the
    2016 mayoral elections after defeating Conservative Member of Parliament (MP)
    Zac Goldsmith by 1310143 votes to 994614. Khan assumed the office on 9 May
    2016.
  • Khan succeeds Conservative Party
    Mayor Boris Johnson.

Books & Authors –
Shashi Kapoor – the Householder, the Star authored by Aseem Chhabra
released

  • Yesteryear’s Bollywood actor
    Shashi Kapoor’s biography titled Shashi Kapoor – the Householder, the Star was
    released on 6 May 2016.
  • The book, which attempts to delve
    into the nature and nurture of Shashi Kapoor, is authored by film journalist
    Aseem Chhabra.
  • Shashi Kapoor – the Householder,
    the Star is the first biography of the veteran actor.















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