Current Affairs Update – 20 Jan, 2015

Finance/Business/Economy News
1. RBI asks banks to
review minimum lending rate every quarter

  • The Reserve Bank of India, on Monday, asked banks to
    notify the Base Rate, or the minimum lending rate, at least once in every three
    months based on the cost of funds, a move seen as a nudge to lenders to pass on
    the changes in the policy rate to borrowers.
  • The direction comes soon after the RBI cut the repo rate
    by 0.25 percentage point, the first reduction in 20 months, to boost credit and
    economic growth.
  • Banks have in the past shown reluctance to pass on the
    benefits of rate cut, but have been proactive in raising the benchmark lending
    rate soon after the repo rate (the rate at which the RBI lends to banks) is
    hiked.
  • At present, the review of the Base Rate does not have a
    fixed schedule.
  • Banks’ internal pricing policy, it said, must spell out
    the rationale for, and range of, the spread in the case of a given category of
    borrower, as also, the delegation of powers in respect of loan pricing. The
    rationale of the policy should be available for supervisory review.

2. RBI allows NBFCs
refinance new infrastructure project loans
  • The Reserve Bank of India has on Monday allowed
    non-banking finance companies to refinance fresh infrastructure project loans
    in five-seven year intervals to improve project viability and debt-servicing
    capacity of their borrowers. Earlier, RBI allowed banks such freedom as the
    economy is still a fair distance away from a complete revival. NBFCs wanted the
    RBI to extend the flexibility to them, too.
  • For new long-term projects, RBI came up with a structure
    -popularly referred as 525 rule -allowing banks to lend to a project for about
    25 years, with an option of rewriting the terms of the loan or transferring it
    to another bank or financial institution after five years.
  • A large number of projects in the core sector such as
    power and road are into trouble due to the sluggish economy impacting cash
    flows. The new rule is expected to bring these projects back on track as loan
    repayment would be co-terminus with cash flows.
  • The flexibility would also help lenders to bridge asset
    liability gaps.

3. India signed MoU
with South Africa for developing Youth Enterprises
  • A public sector enterprise under the Union Ministry of
    Micro, Small & Medium Enterprises, National Small Industries Corporation
    Limited (NSIC) on 19 January 2015 signed a Memorandum of Understanding (MoU) of
    Cooperation with the Black Business Council (BBC) of South Africa.
  • The MoU was signed during the Conference on Cooperation
    in MSME Sector organized by NSIC and the High Commission of India in
    cooperation with Black Business Council.

Highlights of the
agreement
  • The agreement was signed for developing youth owned
    enterprises in South Africa.
  • The MoU, besides cooperation in MSME sector, also focuses
    on BBC’s efforts to economically empower the marginalized group in South Africa
    through NSIC’s Rapid Incubation Programme.  
  • BBC plans to establish 5 Rapid Incubation Centres in
    South Africa in cooperation with NSIC.

4. ONGC inked MoC in
Hydrocarbons and Energy with Pan-IIT
  • Oil and Natural Gas Corporation (ONGC) on 19 January 2015
    inked a Memorandum of Collaboration (MoC) with Pan-IIT (Indian Institutes of
    Technology) to work towards a collective R&D Programme for Developing
    Indigenous Technologies to enhance Exploration and Exploitation of Hydrocarbons
    and Alternate Sources of Energy.
  • Pan IIT is a consortium of seven premier Indian
    Institutes of Technology namely, IIT-Kharagpur, IIT-Kanpur, IIT-Madras,
    IIT-Mumbai, IIT-Delhi, IIT-Guwahati and IIT-Roorkee.
  • The agreement was signed in Delhi in presence of Union
    Minister of Human Resource Development Smriti Irani and the Minister of State
    for Petroleum and Natural Gas, Dharmendra Pradhan. The MoC is a response to
    Prime Minister Narendra Modi’s Make in India initiative.

5. Twitter acquires
Indian start-up ZipDial

  • Marking its first acquisition in India, Twitter on
    Tuesday announced acquisition of Bangalore-based mobile marketing start-up
    ZipDial.
  • ZipDial offers services like missed calls for user
    verification, alerts and other use cases. While the deal size was not
    disclosed, according to reports is it pegged at about $30 million.
  • It has about 50 employs in India, all of whom will be now
    part of Twitter. This acquisition will also bring Twitter a new engineering
    office in Bangalore.
  • ZipDial engages nearly 60 million users through its
    platform with hundreds of marketer clients, including leading brands and media
    companies, including Procter & Gamble, Cadbury, Unilever, Colgate, Disney,
    MakeMyTrip, and Amazon.

6. India’s growth rate
to surpass China’s in 2016: IMF
  • India is expected to grow at 6.3 per cent this year and
    6.5 per cent in 2016 by when it is likely to cross China’s projected growth
    rate, the IMF said today while terming the new government’s reforms as
    “promising” but insisted that their implementation is key.
  • In 2014, India’s growth rate was 5.8 per cent against
    China’s 7.4 per cent, said the World Economic Report update released by the
    International Monetary Fund. India’s growth rate in 2013 was five per cent as
    against China’s 7.8 per cent.
  • India is projected to grow at 6.3 per cent in 2015 and
    6.5 per cent in 2016, when it is likely to cross China’s projected growth rate
    of 6.3 per cent, the IMF said.

News Related to India and Indian Polity

7. Pahlaj Nihalani appointed as Chairman of
CBFC

  • Filmmaker
    Pahlaj Nihalani on 19 January 2015 was appointed as the Chairman of Central
    Board of Film Certification (CBFC).
  • Nihalani,
    known for the 1990s blockbusters Shola aur Shabnam and Aankhen will succeed
    Leela Samson who resigned from her office on 16 January 2015.
  • Nihalani
    is also known for producing a fan-song for Prime Minister Narendra Modi in 2014
    titled Har Ghar Modi-The Power House of India.
  • Union
    Information and Broadcasting Ministry who reconstituted the complete Board also
    appointed nine new members in it. The tenure of the Chairperson and the members
    of the CBFC will be of three years.
  • The
    Chairman and the members were appointed in accordance with the sub-section (1)
    of Section 3 of the Cinematograph Act, 1952 and Rule 3 of the Cinematograph
    (Certification) Rules, 1983.

8. Union Government banned mobile handsets
with fake, duplicate identity numbers
  • Union
    Government on 19 January 2015 prohibited imports of all kind of mobile handsets
    with fake or duplicate Unique Identity Numbers. The decision will help the
    security agencies to track callers using different SIM (Subscriber Identity
    Module) cards.
  • Director
    General of Foreign Trade in its notification added GSM mobile handsets with
    duplicate or fake IMEI and CDMA mobile handsets with duplicate or fake ESN
    (Electronic Serial Number)/MEID (mobile equipment identifier) to the list of
    Prohibited items for import.
  • Earlier,
    import of mobile phones with or without 00…00 IMEI numbers were banned but this
    order places bans on duplicate handsets as well.

9. Four ICG vessels commissioned at Mormugao
Port of Vasco
  • Union
    Defence Minister Manohar Parrikar on 19 January 2015 commissioned four Indian
    Coast Guard (ICG) vessels at Mormugao Port of Vasco in Goa. The launched
    vessels include two fast patrol vessels namely ICG Amogh and ICG Ameya and two
    interceptor boats Charlie 413 (C-413) and Charlie 414 (C-414).
  • These
    boats will be mainly used for patrolling and interception and will also be used
    for the purpose of research and rescue by the agency.
  • The two
    fast patrolling vessels have been built by Cochin Shipyard Ltd and have a
    displacement of 290 tons and can hit maximum speed of 33 knots. On the other
    hand, the smaller interceptor boats have been built by Larsen & Turbo
    shipyard Ltd. Hazira and have a displacement of 106 tons and can hit a maximum
    sped of 45 knots.

International News

10. Haiti president
announced formation of new government under Prime Minister Evans Paul
  • Haitian President Michel Martelly on 18 January 2015
    announced the formation of new government that will be led by newly elected
    Prime Minister Evans Paul.
  • Martelly appointed 18 ministers and 16 secretaries of
    state to the new cabinet of Haiti. Carel Alexandre was appointed as the head of
    public security. The new planning minister is Yves Germain Joseph.
  • Despite promising a new government, Martelly kept several
    current cabinet members in their posts including the Ministers of Defence,
    Foreign Affairs, Health, Tourism, Education and Public Works and appointed his
    allies to the key positions of Planning Minister and Secretary of State for
    Public Security.

Sports News

11. England overpower
India by nine wickets in ODI

  • England thrashed India by nine wickets with more than 22
    overs to spare on Tuesday to record their first win in the tri-series
    tournament in Australia and boost their confidence ahead of next month’s World
    Cup.
  • Fast bowler Steven Finn claimed his first five-wicket
    haul in a one-day international as England destroyed India’s batting lineup at
    the Gabba in Brisbane.
  • Finn took 5-33 from eight overs while Jimmy Anderson
    picked up four wickets as the pair skittled the reigning world champions for
    153 in less than 40 overs.
  • Ian Bell and James Taylor both posted unbeaten
    half-centuries as England cruised to victory in 27.3 overs, earning a bonus
    point for their lopsided win.