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GENERAL AWARENESS – AUGUST 2014 2

GENERAL AWARENESS

AUGUST 2014 Year: 2014 Vol. 3, Issue 02

A PUBLICATION OF GYANM EDUCATION & TRAINING INSTITUTE PVT. LTD.

SCO 13-14-15, 2ND FLOOR, SEC 34-A, CHANDIGARH

CONTENTS

SECTION – A

CURRENT AFFAIRS April to June 2014 1-19

SECTION – B

BULLET NEWS Jan 2014 TO March 2014 20-32

SECTION – C 2 SBI CLERK MOCK TEST

CENTRAL SCHEMES MCQs ON POLITY

33-58 59-61 62-71

SECTION – E

LATEST GK BYTES 72-92

FIGURES TO REMEMBER

REPO RATE 8.00%

REVERSE REPO RATE 7.00%

MARGINAL STANDING FACILITY RATE

9.00%

STATUTORY LIQUIDITY RATIO

22.5%

CASH RESERVE RATIO 4.00%

BANK RATE 9.00%

BASE RATE(s) (of various banks)

9.80% – 10.25 %

INDIA’S RANK IN

Economic Confidence Index 01st

Choice for FDI 4th

Global Peace Index 143rd

Press Freedom Index 2014 78th

Ease of Doing Business (World Bank) 134th

Social Progress Index 102nd

World Press Freedom Index 140th Environment Performance Index 155th

Index for Nuclear Safety 23rd

Index of Economic Freedom 120th

Rank in Energy Usage 69th

Ease of Doing Business (Forbes) 98th Corruption Perception Index 94th

World Prosperity Index 106th

Global Hunger Index 2013 63rd Human Capital Index 78th

Global Gender Gap Index 101st

NATIONAL NEWS

JUNE 2014 PANJAB UNIVERSITY BEST IN INDIA Panjab University, Chandigarh, is the highest ranked Indian higher educational institution in the globally recognized Times Higher Education’s Asia rankings. Placed 32nd in Asia’s top 100 institutions, PU has outperformed IITs on all ranking parameters. The list is topped by the University of Tokyo INDIA SIGNS ‘WASHINGTON ACCORD’ Indian students with accredited technical education degrees will now find it easy to get academic recognition and jobs in 17 major nations across the world, including the US, the UK, Canada, Australia, Japan, Korea, New Zealand, Singapore, South Africa, Turkey and Russia as India has become a permanent signatory to the Washington Accord (WA), a global agreement that covers mutual recognition in respect of tertiary-level engineering qualifications among the signatory countries. INDIA HOUSE TO 1.56 LAKH MILLIONAIRES According to the World Wealth Report 2014, released by Capgemini and RBC Wealth Management, there were 1,56,000 high net worth individuals in India in 2013, up from 1,53,000 in 2012. India has been ranked 16th in the list of countries with highest number of HNWI population, the US topping the chart with 40,06,000 millionaires, followed by Japan (23,27,000). U N AWARD FOR ‘MOBILE SEVA’ 'Mobile Seva', an initiative conceptualised by Indian government’s Department of Electronics and Information Technology for delivery of public services electronically through the mobile platform has been awarded a United Nations Public Service Award. INDIA NO 1 IN ECONOMIC CONFIDENCE In a 25 nation-list compiled by global research firm Ipsos, India has been placed at number one rank in terms of economic confidence of citizens. As many as 60 per cent Indians surveyed have predicted that domestic economy would be stronger in the next six months, making it the most confident nation. INDIA 4th CHOICE OF MNCs FOR INVESTMENT Unctad's annual World Investment Report 2014 shows that China remained the first choice of MNCs, followed by the US. But, Indonesia has overtaken India as the third most preferred destination for 2014-16. A series of policy flip-flops and harsh tax measures commonly referred to as "tax terrorism", have dented India's image. AIR INDIA JOINS STAR ALLIANCE National carrier Air India has joined Star Alliance - a group of 26 (now 27) carriers with as many as 4,338 aircraft flying to 1,328 destinations across 195 countries. It is an agreement between member airlines to use each other’s existing routes and facilities. For an Air India passenger it means simpler transit through single booking across multiple airlines to places where the national carrier does not operate.


PROJECT ‘MAUSAM’ FOR INDIAN OCEAN Union Ministry of Culture has launched the Project Mausam at the 38th session of the World Heritage Committee held in Doha, Qatar. The Project aims to explore the diversity of cultural, commercial and religious interactions in the Indian Ocean region. P M VISITS BHUTAN ON FIRST FOREIGN TRIP Prime Minister Mr. Modi made his first overseas trip by visiting Bhutan. He inaugurated the new Supreme Court building at Thimpu, constructed with Indian assistance. He also laid the foundation for a 600 megawatt hydroelectric power station as part of an energy cooperation plan. ANSARI VISITS CHINA Vice-President Hamid Ansari visited China to meet President Xi Jinping and Vice-President Li Yuanchao. He unveiled the first jointly compiled two - volume encyclopaedia, chronicling a 2,000-year history of cultural exchanges between India and China. TELANGANA, THE 29th STATE OF INDIA June 2, 2014 witnessed the birth of 29th state of India – Telangana. Formed by carving out 10 districts of erstwhile Andhra Pradesh, the new state will have an area of 1.14 lakh sq kms and a population of over 3.5 crore. Telugu and Urdu are the main languages in the region. City of Hyderabad will continue to remain the joint capital of both – Telangana and Andhra Pradesh for next ten years. Telangana Rashtra Samiti President K. Chandrasekhar Rao (KCR) is the new Chief Minister of the state. INDIA 143RD IN TERMS OF PEACE Global Peace Index (GPI) 2014 released by the Institute for Economics and Peace released in London has placed India at 143rd place in list of 162 countries. Syria is the least peaceful nation while Iceland is the most peaceful country in the world.

External Affairs Minister Sushma Swaraj visited Dhaka, capital of Bangladesh on her first solo overseas visit.

The Narmada Control Authority gave its nod to Gujarat for raising the height of the Narmada dam to a level of 138.72 metres from the present 121.92 metres.

MAY 2014 INDIA 2nd BEST IN CONSUMER CONFIDENCE As per the Nielsen global survey, Consumer confidence level in India jumped to 121points in the first quarter of the current fiscal, the highest optimism level since the fourth quarter of 2012. India retains its position as the second most-optimistic country in the survey. Indonesia leads the global index with 124 points and the Philippines is in third place with 116 points. INDIA 3rd IN GDP SIZE Data released by the international comparison programme of the World Bank group shows that in a matter of six years, India has emerged as the world's third largest economy (in terms of PPP) in 2011, from being the 10th largest in 2005, moving ahead of Japan, while the US remained the largest economy closely followed by China. The world produced goods and services worth over $90 trillion in 2011 and almost half of this came from low and middle-income countries. INDIAN CULTURAL FESTIVAL IN CHINA India started its biggest year-long cultural festival, “Glimpses of India” in China with a performance of classical Indian dances in Shanghai by artists from Chennai-based Kalakshetra cultural academy.

INDIA 134TH IN ‘EASE OF DOING BUSINESS’ World Bank and International Finance Corporation have released their annual report for “Doing Business” as per which India ranks 134th among 189 nations when it comes to ease of doing business. Singapore ranked first in the list. INDIAN EVMs TO BE USED IN NAMIBIA Namibia has imported 3400 India-made Electronic Voting Machines (EVMs) for use in their Presidential Election. Namibia is the first African country to use such machines in any of its Polls. These EVMs are manufactured by the public sector unit, Bharat Electronic Limited (BEL) based in Bangaluru. ‘TITLI’ SCREENED AT CANNES Indian film Titli (butterfly), directed by Kanu Behl and produced by Aditya Chopra was screened at Cannes Film Festival at Cannes, France. The film is about the journey of a boy called ‘Titli’ who wants to escape from his oppressive brother. INDIA 78TH IN PRESS FREEDOM Latest Press Freedom Index 2014 has placed India at 78th place on the basis of freedom of media in the country. Press freedom in India has deteriorated due to increased "interference" by media owners ahead of the general elections this year. Netherlands, Norway, and Sweden topped the list, which included 197 countries.


W B AID FOR SARVA SHIKSHA ABHIYAN – III World Bank has agreed to provide $ 1billion assistance to India to support its Sarva Shikhsa Abhiyan – III, the largest school education programme in the world. Funds will be deployed by the HRD Ministry over a period of three years. S C BANS BULLS USE IN ‘JALLIKATTU’ The Supreme Court has prohibited use of bulls in Tamil Nadu’s ‘Jallikattu’ festivals, holding that use of bulls in such events severely harmed the animals and constituted an offence under the Prevention of Cruelty to the Animals Act. HIGHEST INFANT MORTALITY IN INDIA More than seven lakh newborns die in India every year, the highest number of such deaths globally, a new study has claimed. Each year 5.5 million babies leave the world without celebrating their first birth day. SC NOD FOR PROBING SENIOR BUREAUCRATS A three judge Supreme Court bench headed by the Chief Justice of India has held as invalid the legal provision that makes prior sanction mandatory for the Central Bureau of Investigation to conduct a probe against senior bureaucrats (joint secretary and above) in corruption cases under the Prevention of Corruption Act as it violates the article 14 (equality before law) of the constitution.

INDIA TOPS IN ‘OPEN DEFECATION’ A UN report- ‘Progress on Drinking Water and Sanitation, 2014 says that 82 per cent of the one billion people practising open defecation in the world live in just 10 countries, topped by India having sixty per cent (597 million) of this population.

DELHI MOST POLLUTED CITY WHO has stated that the quality of air in most cities worldwide failed to meet the WHO standards for safe levels of pollution. The release counted Delhi among one of the most polluted city in the world in terms of air quality as it has highest concentration of particulate matters less than 2.5 microns, which is considered most serious.

APRIL 2014 KEJRIWAL, MODI IN TIME TOP 100 The Time has named the 100 most influential people in the world without ranking them and four Indians have made it to the list. The four are - Aam Aadmi Party leader Arvind Kejriwal (highest score), followed by BJP leader Narendra Modi, noted author Arundhati Roy and Coimbatore-based health activist Arunachalam Muruganantham. ‘AADHAAR’ NOT MANDATORY – S C The Supreme Court has directed the Centre to immediately withdraw the instructions, if any, issued by it for making Aadhaar card mandatory for citizens to avail government services. The Court also said that biometric or any other data should not be shared with any authorities unless the accused gives consent in writing. INDIA RANKS 83RD IN USE OF ICT A World Economic Forum report says that India has slid down to 83rd spot among 148 economies in terms of leveraging information and communications technologies for growth and well being. In 2013, it ranked 68th out of 144 countries. SMALL STATES TOP IN POLICY EFFECTIVENESS The India Public Policy Report 2014, brought out by Jindal School of Government and Public Policy at the Sonepat-based O.P. Jindal Global University, in association with the Oxford University Press, has ranked India’s smallest states — Sikkim, Mizoram, Goa, Punjab and Delhi — best in policy effectiveness, while Gujarat has slipped over the decades to the 16th place and Kerala comes in at 21st slot. INDIA RANKS 102ND IN SOCIAL PROGRESS The Social Progress Index 2014 compiled by US-based non-profit group Social Progress Imperative ranks India102nd among the 132 countries. The index aims to measure quality of life using measures of access to basic human needs such as food and shelter and of equality of opportunity such as education and personal freedom. INDIA BHUTAN FOR JOINT HYDROPOWER India and Bhutan have signed an agreement on development of four hydropower projects for producing 2120 MW on a joint venture-model between public sector undertakings of the two countries. EUNUCHS RECOGNIZED AS ‘THIRD’ GENDER In a landmark judgement, the Supreme Court has recognised transgenders or eunuchs as third category of gender and directed Centre and states to take steps to treat them as socially and educationally backward classes and extend reservation for admission in educational institutions and for public appointments. The Court clarified that its verdict pertains only to eunuchs and not other sections of society like gay, lesbian and bisexuals who are also considered under the umbrella term 'transgender'.


NEWS FROM STATES

JUNE 2014 U K AWARD FOR BENGAL’s GIRL SCHEME Kanyashree Prakalpa, a West Bengal government scheme that provides scholarship to girls from economically-backward backgrounds, has been given international recognition jointly by the United Kingdom’s Department for International Development and UNICEF. ‘GAURAVI’ TO HELP WOMEN IN STRESS India’s first One Stop Crisis Centre (OSCC) named Gauravi was launched in Bhopal, Madhya Pradesh on 16 June 2014. It was launched by the Bollywood actor Amir Khan. The centre is first of its kind in India for women who are victims of violence. It will provide help and assistance to rape survivors and victims of dowry harassment, domestic violence and other atrocities on women, all under one roof. MUMBAI BECOMES 4TH CITY TO GET METRO

Mumbai became the fourth city in the country to have Metro rail operations, besides Kolkata, Delhi and Bangalore. The 11.4 km Versova-Andheri-Ghatkopar section, connecting western suburbs with eastern suburbs, will carry around 11 lakh passengers every day. $100 MN WORLD BANK LOAN FOR HIMACHAL World Bank will provide $ 100 million to Himachal Pradesh for promoting development of sustainable hydropower, adapt and mitigate the effects of climate change and empower local communities to conserve their watersheds. SIKKIM TO GIVE JOBS TO BPL CANDIDATES Sikkim government has announced 12 per cent reservation in all state government jobs and posts in public sector undertakings for candidates of Sikkimese origin living below poverty line, with immediate effect.

Gujarat has become the first state in India to implement 33 per cent reservation for women in the police force, across all cadres.

MAY 2014 VIDHAN SABHA ELECTIONS IN 5 STATES Along with the general elections, five states also elected their new MLAs (member of legislative assembly). Following were elected as the new Chief Ministers:

Naveen Patnaik (Biju Janata Dal) – Odisha, 4th time

Pawan Chamling (Sikkim Democratic Fund) – Sikkim, 5th time, becoming the longest serving C M in India.

Chandrababu Naidu (Telugu Desam Party)—Andhra Pradesh

K Chandrasekhara Rao (Telangana Rastra Samithi) – Telangana

Nabam Tuki (Congress) -- Arunachal Pradesh

Some other Chief Ministers were also changed:

Anandiben Patel (BJP): Elected as Chief Minister of Gujarat in place of Narendra Modi.

Jitan Ram Manjhi became new Chief Minister of Bihar as present CM Nitish Kumar resigned owing the responsibility for poor performance of his party in general elections.

T R Zeliang (Naga People's Front): Elected as the new Chief Minister of Nagaland following the resignation of current C M Neiphiu Rio as he got elected as M P.

A four-year ban which barred short messaging service (SMS) on prepaid mobile phones in Jammu and Kashmir has been lifted by the state government.

Rajasthan has decided to open 325 Ma Bari centres in tribal areas of the four districts to provide education to the children of 6 to 12 age where there are no schools.

APRIL 2014 ARUNACHAL GETS CONNECTED BY RAIL

The Arunachal Pradesh was put on the country’s railway map on April 7 with the first passenger train of about 400 commuters arriving at Naharlagun, near state capital Itanagar, starting from Dekargaon, Assam. MAHARASHTRA TOPS IN INVESTMENT According to an Assocham report, Maharashtra has emerged as the number one investment destination in the country replacing Gujarat, attracting cumulative investment proposals of Rs 14,73,466 crore as on December 2013, while Gujarat drew proposals worth Rs. 13,98,347 crore only. Asia’s largest Tulip garden - Indira Gandhi Memorial Tulip garden is located on the banks of Dal Lake, Srinagar, J&K. Spread on 15-hectares, it has over 1.5 million tulips. India’s first double-decker flyover opened in Mumbai on 18th April connecting the eastern suburbs with western suburb via the Santa Cruz-Chembur link road.


GOVERNMENT

INITIATIVES

JUNE 2014 NO TRANSFERS FOR PARENTS OF DISABLED Central government has decided that all the government employees who have differently abled children to take care of will be exempted from routine transfers and they will not be asked to take voluntary retirement on refusing such postings. GOMs AND EGOMs SCRAPPED With a view to improve accountability and responsibility, govt has decided to abolish, with immediate effect, all the Groups of Ministers (GoMs) and Empowered Groups of Ministers (EGoMs) set up by the previous UPA-II govt.

FOOD BUDGET RAISED FOR POWER SPORTS Govt has decided to increase the daily food supplement budget from Rs 280 to Rs 750 for the power games which include boxing, wrestling, weightlifting, judo and boxing. The decision was taken keeping in mind the Commonwealth Games & Asian Games this year and Rio Olympics in 2016. 12000 LABOUR CHARGES TO POOR FOR HOUSE

The Centre has decided to give Rs 12,000 per household as labour charges to the poor for building their homes under Indira Awaas Yojna-IAY. Govt. provides Rs. 75,000 for construction of a house under IAY in hilly areas and Rs 70,000 in plains, of which 20% is the labour component.

MAY 2014 SIT FOR PROBING BLACK MONEY The Supreme Court has reconstituted a Special Investigation Team (SIT) under the chairmanship of retired judge MB Shah to monitor the probe into the black money cases, both inside and outside the country. Incidentally, this is also the first major decision taken by the new Union Cabinet. SECURITY PACT SIGNED WITH MYANMAR India and Myanmar have inked a pact to enhance security cooperation in combating the key issues of insurgency, arms smuggling and human trafficking. The agreement was signed at Nay Pyi Taw, capital of Myanmar.

In a move that signals changed priorities, the ministry of environment and forests has been renamed as the Ministry of Environment, Forest and Climate Change.

APRIL 2014 FREE SALE OF 5KG LPG CYLINDERS Indian Oil Corporation has introduced the sale of market-priced 5-kg Free Trade LPG (FTL) cylinders through kirana stores and supermarkets for the first time in India. To begin with, these have been launched in Bangalore, Chennai, Gorakhpur, Lucknow and Aligarh.

ECONOMIC INDICATORS

JUNE 2014 GDP GROWS @ 4.7% IN 2013-14 Latest data released by the Central Statistical Office (CSO) has estimated value of India’s GDP at current market prices at Rs. 113.55 lakh crore, achieving a growth rate of 4.7 percent in 2013-14 as against 4.5 percent achieved in 2012-13. This is the first time in 26 years after 1987-88 that GDP has grown at sub 5% in two successive years. The per capita income at current prices during 2013-14 is estimated to have attained a level of Rs.74,380.

RBI PUTS GROWTH RATE AT 5-6 PER CENT In its Second Bi-Monthly Monetary Policy Statement, the Reserve Bank has stated that economic growth is expected to be between 5 and 6 per cent in 2014-15 even as uncertainty over the monsoon clouds the forecast for agriculture. India's economic growth stayed below 5 per cent for the second year in a row at 4.7 per cent in 2013-14, mainly due to a decline in manufacturing and mining output.

INDIA TO GROW @ 5.5% - WORLD BANK The World Bank has projected a 5.5% growth for India in 2014-15, estimating that this will accelerate to 6.3% in 2015-16 and 6.6% in 2016-17. IIP TURNS POSITIVE BY 3.4% Raising hopes of turnaround, Index of Industrial Production (IIP) in April moved up by 3.4 per cent, after contracting in previous two months. The recovery came around especially in output of manu-facturing, mining and electricity production and capital goods. CORE SECTOR GROWS BY 4.2% Helped by healthy growth in electricity, fertilizers, cement and coal, the output of eight core industries increased 4.2 per cent in April, up from 2.5 per cent in the previous month. The growth in April, 2013, was 3.7 per cent.


EXPORTS JUMP BY 12.4% TO $28 BN Buoyed by an improvement in major markets such as the US and Europe, exports grew by 12.4% to $ 28 billion in May, the fastest growth in the past six months. Imports dipped by 11.4% at $39.23 billion, giving a trade deficit of $ 11.23 billion.

MAY 2014 UN PUTS INDIA’S GROWTH AT 5% According to the UN World Economic Situation and Prospects (WESP) 2014 report, Indian economy will grow 5 per cent in 2014 and record a slightly higher expansion of 5.5 per cent next year riding on stronger consumption and investment. ECONOMY TO GROW BY 4.9% - OECD Latest economic outlook by the Paris-based think-tank- Organisation for Economic Cooperation and Development (OECD) says that India's economy is expected to grow up to 4.9% in calendar year 2014 from 4.5% a year earlier, helped by a rebound in capital investments as well as a pick-up in private consumption, but rising bad loans at its banks threaten to choke the recovery.

APRIL 2014 LOW GROWTH DUE TO INTERNAL FACTORS World Economic Outlook report by the International Monetary Fund has attributed India's declining economic growth, which has touched a decade's low of 4.5 per cent in 2012-13, to mainly internal factors. India's economic growth, which touched 8.9 per cent in 2010-11 declined to 6.7 per cent in the following year and touched a decade's low of 4.5 per cent in 2012-13. GDP GROWTH MAY IMPROVE - IMF According to the International Monetary Fund (IMF), growth of India’s GDP could recover to 5.4 per cent in the current fiscal year (2014-15) from 4.4 per cent expected in 2013-14. It may further increase by one percentage point to 6.4 per cent in the year 2015-16 due to stronger global growth, an improvement in export competitiveness and implementation of the recently-approved investment projects.

ADB PUTS GROWTH RATE AT 5.5% The Asian Development Bank has cut India's growth projection for 2014-15 to 5.5% against 5.7% estimated earlier, on account of weaker than expected industrial growth. The Bank pointed out that government needed to clear projects quickly and boost manufacturing, besides carrying out structural reforms.

ECONOMY

JUNE 2014 SOLO EVENTS NOT PART OF CSR The Corporate Affairs Ministry has clarified that one-off events such as marathons / awards / charitable contribution /advertisement / sponsorships of TV programmes etc would not be qualified as part of Corporate Social Responsibility (CSR) expenditure. Activities like housing for Economically Weaker Sections, slum clearance, disaster management, rural development, road safety, skill development of agriculture labour can be considered under the CSR. CSR rules are applicable to companies having at least Rs 5 crore net profit, or Rs 1,000 crore turnover or Rs 500 crore net worth. As per CSR rules, such companies are required to shell out at least two per cent of their three-year annual average net profit towards CSR activities.

BAN ON MILK PRODUCTS FROM CHINA The government has extended the ban on imports of milk and its products from China for one more year till June 2015. The ban was first imposed in September 2008 due to presence of melamine in milk products, a chemical used for making plastics and fertilisers.

F I OF 10% TO BE TREATED AS FDI Foreign investment of 10 per cent or more in a listed company will now be treated as foreign direct investment (FDI) as the government has accepted the Finance Secretary Arvind Mayaram committee’s recommendations on rationalising definitions of FDI and FII.

NEW SEBI NORMS FOR DEBT SECURITIES SEBI has issued new norms for public issuance of debt securities (debentures, bonds etc.) under which such offers will have to be of minimum Rs 100 crore and the companies will have to attain at least 75 per cent subscription.

ISRAEL TO HELP IN AGRICULTURE Israel is planning to open two centres of excellence at Nalanda and Vaishali in Bihar in the field of vegetables and mango respectively to help cultivators increase their produc-tivity. In these centres, Israeli agricultural experts along with local farm scientists would impart knowhow of the latest technology to growers to help them raise the production level.

PSUs TO HAVE 25% PUBLIC HOLDING SEBI has said that public sector undertakings listed on stock exchanges to have should also adhere to the mandatory 25% public shareholding norms that are applicable to private companies. At present, private sector companies are compulsorily required to have at least 25% public shareholding, while for government-owned companies, minimum threshold level is only 10%.


India has overtaken Germany and Italy to emerge as the world's second largest textile exporter. But it lags China, whose exports are nearly seven times higher.

The World Bank has approved funding of USD 107 million (nearly Rs 650 crore) for a road project in Mizoram, connecting Myanmar and Bangladesh.

MAY 2014 AGRI PRODUCTION TO CROSS 264 MN TON The 3rd Advance Estimates of crop production in the 2013-14 crop year (July-June) released by the Agriculture Ministry says that India is likely to produce 264.38 million tonnes of foodgrains during 2013-14 compared to 257.13 million tonnes last year, supported by higher production of wheat and rice. The Agriculture Ministry comes out with four estimates on foodgrains production at different stages of crop harvesting. INDIA IS CHEAPEST MAJOR ECONOMY A report from German banking giant - Deutsche Bank says that a weaker Indian rupee has allowed India to remain the cheapest major economy in the world despite persistently suffering the highest inflation rate. Australia is overall the most expensive major economy, while the United States is the cheapest developed country and Brazil most expensive developing country. TELECOM BASE TOUCHES 933 MILLIONS India’s telecom industry added over one million users in March, taking the total number of subscribers to 933 million, as per latest data released by Telecom Regulatory Authority of India (Trai). Rural India is growing faster claiming 377.73 million subscribers.

Exim Bank has extended $ 100 million in line of credit to Nigeria for building energy projects that will eventually help boost Indian exports.

FDI inflows from Singapore added up to nearly $6 billion in 2013-14, making it largest source of FDI in India, followed by Mauritius at $4.9 billion.

APRIL 2014 INDIA TOPS IN INWARD REMITANCES As per a World Bank report, India ranked first in receiving global remittances in the year 2013 with a whopping $70 billion in its kitty, of which $65 billion were earned from the country's flagship software services exports.

STEEL EXPORTS EXCEED IMPORTS India became net steel exporter in 2013-14 after a gap of six years and is likely to maintain the momentum in 2014-15. Total steel exports by India during the last fiscal stood at 5.59 million tonnes (MT), as against imports of 5.44 MT. India is the world's fourth largest steel maker. JICA TO FUND FOREST PROJECT IN U’KHAND The Japan International Cooperation Agency (JICA) has approved a loan of about Rs 674 crore for a forest project in Uttarakhand. The project will support implementation of disaster reconstruction and prevention measures in the forest area of Uttarakhand where heavy rains caused devastating floods and landslides in June 2013. MORE WOMEN DIRECTORS IN COMPANIES Under the rules notified by the Corporate Affairs Ministry, every listed company and those public firms having paid up share capital of Rs 100 crore or more should have at least one woman director on their board. It will be also applicable to entities with a minimum turnover of Rs 300 cr.

SC ALLOWS IRON ORE MINING IN GOA The Supreme Court has allowed mining of iron ore in Goa after a gap of nearly one-and-a-half year when it was banned. However, the court has fixed an annual cap of 20 million tonnes of iron ore that can be extracted in Goa. SUN PHARMA BUYS OUT RANBAXY In the biggest deal in two years, Sun Pharmaceutical Industries announced to fully acquire rival Ranbaxy Laboratories in an all-stock transaction valued at USD 3.2 billion to become the largest pharmaceutical company in India, with estimated combined revenue of USD 4.2 billion, and 5th largest speciality Generics Company in the world. CADBURY COMPANY CHANGES ITS NAME Cadbury India has changed its name to Mondelez India Foods Limited to fall in line with its parent company - Mondelez International. The change in name will have no impact on the names or packaging of its products such as Dairy Milk, 5 Star, Gems, Perk, Bournvita, Tang and Oreo.


BANKING & FINANCE

JUNE 2014 RBI CUTS SLR DOWN TO 22.5 % RBI in its second bimonthly policy statement reduced statutory liquidity ratio (SLR) to 22.5% from 23%, freeing almost Rs 40,000 crore of resources. Interest rates on home and auto loans are unlikely to fall soon, but they could gradually ease as the banks may lend more to companies and individuals rather than buy government securities. SLR is the mandatory provision for banks to block a certain prescribed percent of their total deposits in government securities.

INTEREST ON ‘UNCLAIMED’ DEPOSITS RBI has advised that Interest on unclaimed deposits transferred to a newly set up fund for educating depositors shall be payable only from the date of their transfer to the fund. Banks will transfer the accounts to the fund after applying up-to-date accrued interest.

PROOF OF LOCAL ADDRESS NOT REQUIRED RBI has advised that for opening of bank accounts, in case the proof of address furnished by the customer is not the local address or address where the customer is currently residing, the bank may take a declaration of the local address on which all correspondence will be made by the bank with the customer. No proof is required for this local address.

ECR REDUCED TO 32 PER CENT The Reserve Bank has reduced the availability of funds under the export credit refinance (ECR) window from 50 per cent of export credit outstanding to 32 per cent with immediate effect. To compensate for the resulting reduction in liquidity, RBI has introduced a special term repo facility up to 0.25 per cent of their net demand and time liabilities- NDTL (total deposits).

RBI ALLOWS ENGAGING NBFCs AS BC The Reserve Bank has permitted non-banking finance companies -NBFCs to act as business correspondents (BCs) of banks, allowing them to offer limited services with the aim of spreading financial inclusion. The RBI said the existing guidelines on the appointment of BCs were reviewed taking into account recommendations of the Nachiket Mor Committee.

LIMIT RAISED TO CARRY CURRENCY ABROAD The Reserve Bank has permitted residents and non-residents, except Pakistanis and Bangladeshis, to carry up to Rs 25,000 in Indian currency notes while leaving the country as against Rs 10,000 earlier. Till now, foreigners were not allowed to carry Indian currency while leaving the country.

BANK BUSINESS GROWS BY OVER 13 % Bank deposits grew at 13.91 per cent year-on-year to Rs 79,00,894 crore as of June 13, as per latest RBI data. Bank credit grew at 13.88 per cent year-on-year to Rs 60,90,030 crore in the fortnight ending 13 June.

India's forex reserves rose by $950.9 million to $313.536 billion in the week to June 13, on account of gains in currency assets.

IndusInd Bank has launched ‘video branch’ - a unique service allowing customers to interact face-to-face with their bank branch using desktop, tablet or smartphone.

Reserve Bank has raised the annual overseas investment ceiling for individuals to $ 125,000 from present $ 75,000.

The Reserve Bank has asked banks to disclose sector wise loans in their financial statements from 2014/15 onwards.

MAY 2014 NAYAK COMMITTEE SUBMIT ITS REPORT P J Nayak Committee appointed by the RBI to review Governance of Boards of Banks in India has recommended that the government should cut its stake in public sector banks to below 50 percent. All banks be incorporated under the Companies Act and a Bank Investment Company (BIC) be constituted to which the Government transfers its holdings in banks. It has also said that RBI — and not the finance ministry — should have the last word on regulation of public sector banks which command 70% of the market share. NO PENALTY FOR TERM LOAN PREPAYMENT RBI has asked banks to consider allowing their borrowers the facility of prepaying all floating rate term loans without any penalty. Earlier this facility was available on house loans only. Some banks are charging pre-payment penalty of up to 2 per cent of the outstanding loans. NO PENALTY IN INOPERATIVE ACCOUNTS RBI has asked banks not to levy penalties on customers who don’t maintain a minimum balance in any inoperative account, as part of a consumer protection initiative. Already, Banks are not allowed to charge customers for non-operation or activation of Basic Savings Bank deposit accounts. However, Banks are permitted to recover charges for non maintenance of minimum balance in normal savings accounts. INDEPENDENT SB ACCOUNTS FOR MINORS RBI has advised that banks are allowed to open only savings bank account in the name of minors of age above 10 years, independently, without the name of their guardians. However, it has been left to the banks to decide various terms and conditions, including amount of withdrawal, issuance of cheque book / debit cards.

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