Finance / Business


1. Finmin asks LIC to sign MoU with Indian Banks' Association


  • ·         The Finance Ministry has directed Life Insurance Corporation (LIC) to immediately operationalise the benefit of life cover under the Pradhan Mantri Jan Dhan Yojana (PMJDY).
  • ·         LIC has been asked to expeditiously enter into a memorandum of understanding (MoU) with the Indian Banks Association (IBA) for providing this facility, official sources said.
  • ·         Contrary to earlier stance, the Finance Ministry has now said that National Payments Corporation of India (NPCI) would not be required to enter into MoU with LIC and IBA for providing this life cover benefit.
  • ·         During the launch of PMJDY scheme on August 28 in the capital, Prime Minister Narendra Modi had announced a life cover of Rs 30,000 with the RuPay card.
  • ·         This benefit would be made available for all those who subscribe to a bank account for the first time during the period August 15 to January 26 next year, it was announced.
  • ·         Under the recently framed guidelines for the facility of life cover, the Finance Ministry had specified that a four-partite agreement – LIC, IBA, NPCI and Department of Financial Services—will have to be executed for running the scheme.
  • ·         But now the Finance Ministry wants NPCI to be out of this arrangement and directed LIC to operationalise the life cover through a MoU with banks.
  • ·         LIC will create a fund for life coverage under PMJDY with an initial corpus of ₹ 100 crore from the social security fund of Government of India under Aam Admi Bima Yojana (AABY) being managed by LIC of India.
  • ·         This will be recouped through budgetary provision by the Government, the Department of Financial Services (DFS) has said.
  • ·         The fund will be replenished by Government from time-to-time within the stipulated premium amount to meet the outgo and administrative expenses.
  • ·         This fund is separate from the Controlled Fund of the LIC. Contribution due for next scheme year will be based on actual claim payment, administrative expenses and any other permissible expenses pertaining to the scheme incurred by LIC and will be provided by Finance Ministry.




2. Government needs to infuse nearly Rs 2.4 lakh crore in state-run banks by March 2019: RBI


  • ·         Government needs to infuse as much as Rs 2.4 lakh crore ($38.78 billion) into state-owned banks by end-March 2019 to meet different kinds of capital requirements including Basel III, provisioning for asset quality, and additional risks, said a central bank Deputy Governor SS Mundra.
  • ·         Banks should start looking for ways to generate more internal capital as the leeway to get additional funds from the government would be limited due to the ongoing fiscal consolidation process, Mundra said.
  • ·         Indian banks, which have been battling mounting bad loans, face a huge challenge of not only raising capital to conform to the Basel III standards, but also several local rules on capital buffers and additional capital needs for systemically important banks.
  • ·         Indian government's holding in state-run banks ranges from 56.26 per cent to 88.63 per cent, and one of the options to generate capital is to lower stakes in banks, Mundra said. According to the Banking Regulation act, government holding in state-run banks cannot fall below 51 per cent.



3. Axis Bank launches smart self-service terminal

  • ·         Axis Bank, India’s third largest private sector bank, has launched a smart self-service terminal that enables customers to deposit as well as withdraw cash from the same machine.
  • ·         The smart self-service terminal will reduce the frequency of loading cash in the machine as well as the cost of idle cash as it allows cash recycling operations by dispensing the deposited cash for future withdrawal transactions, thereby improving the efficiency of the bank's cash operations, it said.
  • ·         Rajiv Anand, Group Executive & Head- Retail Banking, Axis Bank said, “The self-service terminal is another innovative product by the bank which will help customers carry out all financial and non-financial transactions in a convenient and hassle-free manner.”
  • ·         The bank will convert its existing cash deposit machines to smart self-service terminals in a phased manner.




4. India extends $75 million credit line to Fiji

  • ·         India on Wednesday announced a $75 million line of credit to Fiji for a co-generation power plant and a $5 million fund to develop its villages even as the two countries agreed to expand their defence and security cooperation.
  • ·         Prime Minister Narendra Modi also announced a visa-on-arrival for Fijians and assistance projects that included a Parliament library and doubling the scholarships and training slots in India for people from Fiji.
  • ·         The lines of credit were part of three agreements signed between the two countries in the presence of the two leaders.
  • ·         The Pacific Island nation rolled out a red carpet for Mr. Modi, who was received by his counterpart Frank Bainimarama, at the Suva International airport.
  • ·         Mr. Modi was accorded a ceremonial guard of honour at the airport after which he attended the traditional welcome ceremony at Albert park.



5. Shell India won 18000-crore rupees tax dispute case against Income Tax department

  • ·         The Bombay High Court on 18 November 2014 quashed the Income Tax department’s 18000-crore rupees tax order against oil major Shell India.
  • ·         The ruling in favour of Shell India was passed by a bench of Justice M S Sanklecha and Justice S C Gupte on a petition filed by Shell India Markets.
  • ·         The High Court held that the legal principle laid down by it in the Vodafone case in October 2014 also applies in the Shell case too and rejected the I-T department’s argument that the facts of the Shell case were different from the Vodafone case.
  • ·         In the Vodafone case, the High Court had held that in so far as transfer pricing principles are concerned the issuance of shares by an Indian company to its foreign parent is not eligible to transfer pricing provisions as there is no income arising there from.



6. India to replace BIPA with a new pact to protect investments


  • ·         The government plans to replace bilateral investment protection treaties with a new pact that seeks to plug loopholes and enhance legal protection of foreign investors in India as well as Indian investments abroad.
  • ·         Finance Ministry is moving Cabinet with a draft of a new agreement called the Bilateral Investment Treaty (BIT) saying there is a need to revisit existing BIPAs as they do not take into account the socio economic objectives of government policy.
  • ·         India has so far signed 83 Bilateral Trade and Promotion Agreements (BIPA), of which 72 are in force, the Finance Ministry said in its website.
  • ·         The need for a review of BIPA framework arose following several multinational companies invoking the treaty against the government, sources privy to the development said.
  • ·         With respect to systemic issues, the new model introduces rules on conflict of interest regarding arbitrations and transparency. The model excludes taxation matters, sources said.
  • ·         Under the new model of BIT, investor who have substantial business activities in the home State would be protected by the treaty. The proposed BIT would remain in force for a period of 10 years.






7. ADB approves $350 mn for upgradation of roads in MP


  • ·         Asian Development Bank (ADB) will provide $350 million loan assistance for upgradation of district roads in Madhya Pradesh.
  • ·         "The Asian Development Bank has approved a $350 million loan to upgrade district roads in Madhya Pradesh for a project which will tackle an important link in road improvements," ABD said in a statement.
  • ·         The project will upgrade 1,600 kilometres of major district roads in the state through lane widening, surface improvements, and strengthening of culverts and bridges.
  • ·         This is to help cut travel times, improve traffic flow and road safety, and provide better access to markets and social services for poor and remote communities, the statement added.
  • ·         ADB's loan will cover 70 per cent of the total project cost of USD 500 million, with the state government of Madhya Pradesh providing the balance of USD 150 million.
  • ·         The project is expected to be completed by April 2018.
  • ·         ADB, the Manila-based multi-lateral funding agency provided assistance worth USD 21 billion, including co-financing of USD 6.6 billion, in 2013.



India

8. ISRO chosen for Indira Gandhi prize for peace


  • ·         Indian space agency ISRO will be conferred the Indira Gandhi Prize for Peace, Disarmament and Development for 2014 in recognition of its contribution in strengthening international cooperation in peaceful use of outer space.
  • ·         The award jury, chaired by Vice President Hamid Ansari, made the announcement on Wednesday.
  • ·         “The Indira Gandhi Prize for Peace, Disarmament and Development is awarded to the Indian Space Research Organisation (ISRO) in recognition of its path-breaking achievement, culminating in the Mars orbiter mission, its significant contribution in strengthening international cooperation in peaceful use of outer space,” a statement said.
  • ·         The jury also noted the pioneering role played by it in the application of advanced technologies in promoting broad-based and sustainable social and economic development and addressing basic needs of the people particularly in remote and rural areas of the country.




9. PM announces $1-mn fund, visa on arrival facility for Pacific Island nations

  • ·         Reaching out to 14 Pacific Island nations, Prime Minister Narendra Modi today announced setting up of a $one-million fund and visa on arrival facility for them, besides several measures to strengthen the relationship.
  • ·         Speaking at a meeting with the regional leaders, he said India wishes to be a close partner of the Pacific Islands and announced setting up of a Special Adaptation Fund of $1 million.
  • ·         He proposed to develop Pan Pacific Islands Project for telemedicine and tele-education, saying “Given the distance between the islands and poor connectivity, e-networks are an effective means for coordination.”
  • ·         Noting the inconvenience in travel due to visa issues, Modi announced visa on arrival facility for all the 14 Pacific Island countries and hoped that it will facilitate exchanges and promote better understanding between the people.
  • ·         Modi also offered training programmes to the diplomats of Pacific Island countries and proposed a distinguished visitors programme under which the two sides can organise seminars to explore new ideas for strengthening mutually beneficially economic cooperation.
  • ·         He proposed a Forum for India-Pacific Islands Cooperation (FIPIC) be held on a regular basis.
  • ·         Modi also invited the leaders for next meeting in New Delhi in 2015.




10. Internet users in India to cross 300 mn by Dec: Report

  • ·         The number of Internet users in India is expected to cross the 300 million mark by the end of this year, overtaking the US as world’s second-largest Internet market.
  • ·         According to a report by the Internet and Mobile Association of India (IAMAI) and IMRB International, the number of Internet users in India is expected to grow 32 per cent to 302 million this year from 213 million at the end of December 2013.
  • ·         Presently, India has the third-largest Internet user base in the world. While China leads with more than 600 million Internet users, the US has an estimated 279 million users. It is estimated, the report said, that by December 2014, India will overtake the US as the second largest Internet users’ base in the world.
  • ·         The user base in India is further estimated to grow to 354 million by June 2015.
  • ·         The report said of the 278 million users Indian had in October this year, 177 million are in urban India, higher by 29 per cent from last year. In rural India, the number of Internet users increased by 39 per cent to reach 101 million in October 2014.
  • ·         About 119 million users access the Internet on mobile devices in urban India, while rural mobile Internet user base stood at 40 million in October this year. This is further estimated to touch 128 million (urban) and 45 million (rural) by December-end, it said.




11. Three MoUs signed between India and Fiji during visit of PM Modi to Fiji


  • ·         India and Fiji signed three Memorandum of Understandings (MoUs) on 19 November 2014 to strengthen bilateral relations. The agreements were signed during the visit of Prime Minister of Narendra Modi to Fiji.
  • ·         The MoUs were signed in presence of Prime Minister Narendra Modi and Fijian Prime Minister Josiah V Bainimarama in Suva, the capital of Fiji.


Three MoUs that were signed were

  • ·         MoU on Cooperation on exchange of information on structure and content of training programs for diplomats to foster closer exchanges between India and Fiji, as well as the Pacific region.
  • ·         MoU on earmarking of land for the Diplomatic Missions in respective capitals to provide a permanent location for the conduct of bilateral relations and will be an iconic presence in Suva.
  • ·         MoU for extending 70 million US dollars Line of Credit for establishing a Co-Generation Plant at Rarawai Sugar Mills in Fiji to expand the scope of bilateral cooperation in the sugar sector by enhancing value addition and addressing climate change concerns.



After signing of the agreements, Prime Minister Narendra Modi also addressed Fiji’s Parliament. In his address in the Parliament, he said that India is ready to work for making Fiji a digital country. He also appreciated the Fijian Prime Minister for framing a Constitution that not only guarantees freedoms and rights the citizens, but also ensures their basic needs and empower them.


12. Rubber Board wins Indira Gandhi Rajbhasha Award

  • ·         The Department of Official Language under Ministry of Home Affairs has selected Rubber Board for the Indira Gandhi Rajbhasha Award (First Prize) for excellence in the implementation of the official language policy for the year 2013-14.
  • ·         A Jayathilak, Chairman, Rubber Board, received the award from the President of India Pranab Mukherjee in a function held at Vigyan Bhavan, New Delhi.
  • ·         The award is instituted for excellence in implementing Hindi as official language among Boards, Trusts and Societies under Central Government in States where Hindi is not used as the mother tongue.





International

13. Oxford Dictionary named Vape as Word of the Year 2014

  • ·         The Oxford Dictionary named Vape as Word of the Year 2014. The decision was announced in November 2014.
  • ·         The Oxford Dictionary defines Vape as a verb and meaning is to inhale and exhale the vapour produced by an electronic cigarette or similar device. The word Vape is a utilitarian noun brought about by new technology and it added in dictionary in August 2014.
  • ·         The word Vape filled the gap that emerged in the dictionary to describe the inhale and exhale activity which is different from smoking.
  • ·         The other words that competed for the prize is Budtender, Bae, Contactless, Indyref, Normcore and Slacktivism.



14. 83rd Interpol General Assembly held in Monaco


  • ·         83rd Interpol General Assembly was held at Grimaldi Forum in Monaco from 3 November to 7 November 2014. The theme was Turn Back Crime: 100 Years of International Police Cooperation.
  • ·         The general assembly was opened with a Ministerial meeting bringing together justice, security and home affairs ministers from some 100 countries.
  • ·         They had discussion on theme and issued a joint ministerial declaration, encouraging all member countries to take the necessary steps to strengthen international police cooperation against all forms of transnational crime, with an emphasis on terrorism.
  • ·         Union Home Minister Rajnath Singh attended the General assembly 2014 to represent India and addressed the assembly on the topic Contemporary Criminal Threats and new Challenges to Police Cooperation.
  • ·         He congratulated INTERPOL for celebration of its centenary in November 2014 and also wished that they are able to contribute much more to the cause of international cooperation and capacity building in law enforcement agencies across the world.
  • ·         The idea of Interpol was born in 1914 at the first International Criminal Police Congress that was held in Monaco. Interpol– the International Criminal Police Organization was created officially in 1923.
  • ·         At present, it is the world’s largest international police organization with 190 member countries. Its role is to enable police around the world to work together to make the world a safer place.





15. World Toilet Day observed globally today


  • ·         World Toilet Day (WTD) is a United Nations (UN) observance, on November 19, to take action. It is a day to raise awareness about all people who do not have access to a toilet despite the human right to water and sanitation.
  • ·         The purpose of World Toilet Day is to raise awareness about the lack of sanitation in parts of the world (especially in sub-Saharan Africa and Asia where access to improved sanitation is very low), and to encourage the policies that increase sanitation access among the poor.
  • ·         The World Toilet Organization (WTO), have promoted World Toilet Day for years; hence, In 2013, the United Nations(UN) officially recognized November 19 as World Toilet Day in a bid to make sanitation for all a global development priority. It deemed the practice of open-air defecation as “extremely harmful” to public health.
  • ·         According to United Nations (UN), the provision of proper toilets could save the lives of more than 200,000 people in the world. The countries where open defecation is most widely practiced are the same countries with the highest numbers of under-five child deaths, high levels of under-nutrition and poverty, and large wealth disparities.
  • ·         “Equality and Dignity” is the theme of World Toilet Day 2014; thus, the campaign will inspire action to end open defecation and put spotlight on how to access improved sanitation.




16. World Bank approves $285 million to fight Ebola


  • ·         The World Bank has approved a grant of $285 million to finance the three west African countries hardest hit by the Ebola crisis.
  • ·         The grant is part of the nearly $1 billion of financing previously announced by the World Bank for Guinea, Liberia and Sierra Leone, reports Xinhua.
  • ·         The additional financing will enable the three countries to deploy additional national and international health workers, scale up community-based care and community engagement for early detection of suspected Ebola cases, the World Bank in a statement on Tuesday.
  • ·         A previous World Bank analysis showed that if Ebola continues to surge in these three countries and spreads to neighbouring countries, the two-year regional financial impact would reach $32.6 billion by the end of 2015.
  • ·         According to the World Health Organisation, as of November 14, 2014, 14,413 Ebola cases have been registered in eight countries since the outbreak, with 5,177 deaths.



17. Japan slips into surprise recession


  • ·         Japan's economy unexpectedly slipped into recession in the third quarter, setting the stage for Prime Minister Shinzo Abe to delay an unpopular sales tax hike and call a snap election halfway through his term in office.
  • ·         Gross domestic product (GDP) fell at an annualised 1.6 percent pace in July-September, after it plunged 7.3 percent in the second quarter following a rise in the national sales tax, which clobbered consumer spending.
  • ·         The world's third-largest economy had been forecast to rebound by 2.1 percent in the third quarter, but consumption and exports remained weak, saddling companies with huge inventories.
  • ·         Abe had said he would look at the data when deciding whether to press ahead with a second increase in the sales tax to 10 percent in October next year, as part of a plan to curb Japan's huge public debt, the worst among advanced nations.




18. IBM launches new email service ‘Verse’


  • ·         Tech giant IBM has launched a new e-mail application ‘Verse’ for enterprises that integrates social media, file sharing and analytics to help increase productivity.
  • ·         The service stems from IBM’s USD 100 million investment in design innovation and adds layers of analytics, social media and security to the application as employees can access emails, calendars, file sharing, instant messaging, social updates and video chats through a single platform.
  • ·         It is the first messaging system to feature ‘faceted search’, which enables users to pinpoint and retrieve specific information they are seeking across all the various types of content within their email.
  • ·         IBM Verse uses built-in analytics to provide an ‘at-a- glance’ view that intelligently surfaces an individual’s most critical actions for the day.
  • ·         According to research firm IDC, email remains the single most widely used collaboration tool, with worldwide revenue for enterprise email expected to reach USD 4.7 billion in 2017.
  • ·         Cemex, a global leader in the building materials industry, is one of the first clients to participate in an early beta of the new offering.




Sports



19. Terry Walsh resigned as Chief Coach of Indian Hockey team


  • ·         Terry Walsh on 18 November 2014 resigned as Chief Coach of Indian hockey team after his contractual talks with Hockey India (HI) and the Sports Authority of India (SAI) broke down. However, a fresh proposal is still being worked out for his consideration.
  • ·         He was appointed as Hockey India coach in October 2013 by replacing the sacked and fellow Australian Michael Nobbs. 
  • ·         Walsh and some other support staff were having some issues with the government over TDS (Tax Deduction at Source) on their salaries.



20. Cricketer Suresh Raina became co-owner of HIL franchise team Uttar Pradesh Wizards

  • ·         Indian batsman Suresh Raina on 17 November 2014 became co-owner of Hockey India League (HIL) franchise team, Uttar Pradesh Wizards.
  • ·         The announcement of his association was made by Abhijit Sarkar of Uttar Pradesh Wizards in an event held at Sahara Shaher in Lucknow, Uttar Pradesh.
  • ·         With this he became the second Indian cricketer to get associated with HIL. Earlier Team India skipper Mahendra Singh Dhoni also got associated with the Ranchi franchise team of HIL as its co-owner.