Current Affairs Update – 19 Nov, 2014

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7 years ago

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.

This post was last modified on November 27, 2017 9:03 am