For „M-Pesa‟ Vodafone partners with ICICI Bank

November 12th, 2012

Vodafone India has launched its mobile money transfer and payment service ‗M-Pesa‘ in India. The telecom giant has inked a partnership with ICICI Bank to extend this service in India. Vodafone will be offering its customers a mobile money account with ICICI Bank and a mobile wallet issued by MCSL (Mobile Commerce Solutions Ltd), via this service. The ‗M-Pesa‘ service will allow customers to make cash deposits and withdrawals from designated outlets as well as make cash transfers to any mobile phone or any bank account in India. Arvind Kejriwal: HSBC Bank running „hawala‟ (money laundering) transactions
November 14th, 2012

India Against Corruption (IAC) charged HSBC Bank with unning ‗hawala‘ laundering) transactions. IAC members alleged that Mukesh and Anil Ambani among others, had crores of rupees sitting in Swiss banks. Those named were part of the list of 700 people who had accounts with HSBC banks in Switzerland. The list was shared by the French government with India, which, however, did not reveal any name, and the matter is pending in the Supreme Court. British Tax authorities probing charges against HSBC
November 14th, 2012


The British tax authorities launched an investigation allegations of money launderingagainst HSBC.  


HSBC Bank has been accused of opening offshore bank accounts in Jersey for serious criminals living in Britain. This move from British Tax authorities came after a whistleblower was secretly provided a detailed list of names, addresses and bank accounts of HSBC‘s alleged clients. These were said to include names of several people with criminal convictions, including gun-runners and drug dealers. Contrast with India

Observers are contrasting the prompt action taken by British authorities with the Indian government‘s response to similar allegations against HSBC involving Indian clients, where Indian government took no action against HSBC when India AgainstCorruption (IAC) charged HSBC for alleged involvement in Hawala (Money Laundering). Also, Indian Govt took no action since more than a year after the French government gave India a CD containing names of 700 Indian clients who had accounts in HSBC‘s Geneva branch. Finance Minister asks RBI to issue the final guidelines for new banking licenses
November 18th, 2012

The Finance Minister P Chidambaram has asked RBI to finalize the guidelines for issue of new banking licenses and commence accepting applications applications from interested entities. But, RBI insists on amending the Banking Regulation Act before such a move. What RBI wants?   RBI wants that before it issues final guidelines, the overall Banking Laws (Amendment) Bill, 2011 should be passed by the Parliament. The Bill seeks to empower the RBI to supersede the boards of directors of banks for a period not exceeding six months, in the interest of depositors or for securing proper management of any banking company. What Finance Minster (FM) says?    The Act will indeed be amended, hopefully in the winter session or at most in the Budget session. As issuance of the first license would take six to eight months, RBI doesn‘t need such powers immediately. By the time the license is issued and the bank comes into existence and begins to function, the Act would have been amended Madhav Chavan wins WISE Prize „The Nobel Prize for education‟
November 17th, 2012

Dr Madhav Chavan has won the WISE Prize.    The WISE Prize is considered to be the "Nobel prize forEducation". Prize of $500,000 (£314,000) In recognition for his education work in the slums ofMumbai. His efforts to provide lessons in literacy and numeracy for disadvantaged children and adults in India. About Dr. Madhav Chavan and his NGO “PRATHAM” Dr. Madhav Chavan      Indian social activist and educationist Co-founder and CEO of the educational NGO ―Pratham‖ Madhav Chavan was born in Maharastra to Yashwant Chavan, the founder of the Lenin-inspired Lal Nishan Party. Mr. Chavan started his mission to educate the underprivileged slum children of Mumbai in the late 1980s after he came back from USA. His NGO Pratham is the largest NGO working to provide quality education to the underprivileged children of India. “Pratham”  Largest NGO working to provide quality education to the underprivileged children of India.

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Established in 1994 to provide education to the children in the slums of Mumbai city. Since then, the organization has grown both in scope and geographical coverage. Dr Madhav Chavan is the co-founder and CEO of the NGO Pratham. Income Ceiling for EWS and LIG housing raised by Govt
November 17th, 2012

Government has settled to raise the bar on yearly income needed to qualify for benefits under its existing housing schemes for Economically Weaker Sections (EWS) and Lower Income Groups (LIG). The move will benefit 20 lakh (2 million) people as more people will now qualify for taking benefits under Rajiv Awas Yojna (RAY) and EWS Housing Schemes. Now,   Income criteria to qualify for EWS housing category: Rs 1 Lakh Income criteria to qualify for LIG housings category: Rs 2 Lakh Accordingly, the decision will be communicated to banks and state governments for effective implementation. By 2017, US can become world‟s biggest oil producer
November 16th, 2012

The world‘s foremost energy watchdog, the InternationalEnergy Agency (IEA) in its recent report “World Energy Outlook 2012” has held that US can become the world‘s largest oil producer by 2017. How would Predictions…. How would this happen ?  US would benefit from so-called unconventional sources of oil and gas, including shale gas and shale oil, derived from fracking – blasting dense rocks apart to release the fossil fuels trapped within. These sources could fuel the US‘s energy independence, and make the country the world‘s biggest oil producer by 2017. Predictions for USA The IEA also forecasts that the United States will   become world‘s biggest oil producer by 2017 rely more on natural gas than either oil or coal by 2035 due to its cheap domestic supply and uses by industry and electricity generators Global Predictions Globally, the IEA indicates that: this happen ? Predictions for USA and Global

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more than 90% of oil and gas from the Middle East could be sold to Asia, and chiefly to rapidly developing countries such as China fossil fuels will dominate the world‘s energy picture as it has in the past But, in the power sector, renewable energy (wind, solar, and hydroelectricity) use worldwide will be second to coal by 2035 due to technology improvements and continued subsidies Russia, which remains the largest individual energy exporter throughout the period, sees its revenues from oil, natural gas and coal exports rise from $380 billion in 2011 to $410 billion in 2035 huge increases in greenhouse gas emissions that would put hopes of curbing dangerous climate change beyond reach.

Thus, predictions in The IEA in its World Energy Outlook 2012:     fossil fuels will dominate the energy sector through 2035 United States will become the world‘s largest oil producer by 2017, overtaking both Saudi Arabia and Russia US will become almost energy independent by 2035 OPEC will be exporting 90 percent of its oil to Asia, changing the security dynamics in the Middle East. The IEA is not the only agency with this prediction; Citigroup Inc. indicated that the United States will achieve this goal before the end of this decade. Banks to introduce new CTS-2010 by December 31, 2012
November 14th, 2012

Banks all over India are in the process of issuing fresh-look cheques with more security and standardized features to all its customers by December 31, 2012. From January 1, 2013, cheques which do not conform to CTS-2010 standards would not be entertained by banks.

The scope for frauds inherent in paper instruments is. Benefits of adopting CTS-2010  The security features in cheque forms will assist the presenting banks to identify the genuineness of the drawee banks‘ instruments while handling them in the image based scenario. The homogeneity in security features will act as deterrent against frauds. void pantograph and standardization of field placements on cheques. thus. The benchmark prescriptions known as „CTS-2010 standard‟ are to be implemented by December 31. presenting bank. limitations of the existing clearing system in terms ofgeography or jurisdiction can be removed. The benchmark prescriptions are collectively known as "CTS-2010 standard". What is Cheque Standardization and what does CTS 2010 Standard mean ? What are the benefits of adopting CTS-2010 ? How would be the uniqueness of a physical cheque be captured and imparted to the cheque image ? How are the images of cheques taken ? What are the modes in which banks can participate in CTS ? What is Cheque Standardization and what does CTS 2010 Standard mean ?     Growing use of multi-city and payable-at-par cheques for handling of cheques at any branches of a bank. greatly reduced. In its place an electronic image of the cheque is transmitted to the drawee branch by the clearing house. What are the benefits of CTS to customers of banks?      Speeds up the process of settlement. an image replacement document can be printed by a Government Department itself. If required. Further. The benefits from CTS could be summarized as follows –      . CTS-2012 is a set of benchmarks towards achieving standardization of cheques issued by banks all over India. These include provision of mandatory minimum security features on cheque forms such as quality of paper. 2012. bank‘s logo in invisible ink. The fixed field placement specifications will facilitate straight-through-processing at drawee banks‘ end through the use of optical/image character recognition technology. No fear of loss of instruments in transit. date of presentation.What is Cheque Truncation?  We go to a bank and sign a Cheque … now. introduction ofCheque Truncation System (CTS). watermark. Indian Banks Association (IBA) and National Payments Corporation of India (NPCI) are co-ordinating with the banks on implementation of the new standard. ―Truncation‖ is the process of stopping the need for movement of the physical cheque (paper cheque leaves) from one bank‘s branch to other bank‘s branch. Use of images obviates the need to handle and move physical cheques at different points. along with relevant information like data on the MICR band. etc.

How are the images of cheques taken ?  Images of cheques are taken using scanners. CTS is compliant to the requirements of the IT Act. Direct membership: Banks may participate as direct member provided they have a settlement account with the settlement bank and have put in place necessary infrastructure for participating in CTS. Chanda Kochhar of ICICI – Most powerful Business woman in India: Fortune Magazine November 18th. 2012 Fortune Magazine has named Ms Chanda Kochhar. The solution encompasses Image Quality Assessment (IQA) at different levels. The settlement for such indirect / sub-member could be done either directly (if such banks have settlement accounts with the settlement bank) or through the direct member through whom they are participating. How the image and data transmitted over the network is secured ?   CTS is protected via a comprehensive Public Key Infrastructure (PKI). there is a rigorous quality check process at the level of the Capture Systems and the Clearing House Interface (of the presenting bank). which will also add to the uniqueness of the images. She has been named for the same for second time in a row. Indirect / Sub-membership: Banks may become sub-members / indirect members of the direct members by using the infrastructure and / or settlement services of the direct members. Further. 2. What are the modes in which banks can participate in CTS ? There are two modes in which banks may participate in CTS – 1. the new cheque standard "CTS-2010" prescribes certain mandatory and optional security features to be available on cheques. MD and CEO ofICICI Bank as the most powerful business woman in Business inIndia.     Shorter clearing cycle Superior verification and reconciliation process No geographical restrictions as to jurisdiction Operational efficiency for banks and customers alike Reduction in operational risk and risks associated with paper clearing How would be the uniqueness of a physical cheque be captured and imparted to the cheque image ?   To ensure only images of requisite quality move in the CTS processing cycle. The top 3 most Powerful Business woman in India: . 2000.

Piramal. 4. Executive Director. which have decreased their PCR (Provision Coverage Ratio) in the last one year. JK Lakshmi Cement: Rs 5. Chairperson. were they asked to maintain PCR of 70%. 2012 As per Fortune Magazine. private sector banks. have maintained provision covers of more than 70%. MD. RBI had withdrawn the requirement for 70% loan loss cover from September 2011. which had withdrawn the requirement for 70% loan loss cover from September 2011.  Source: Business Standard .  It is interesting to note that although. would have seen their quarterly profits wiped out. 2012 Thanks to RBI. Peninsula Land: Rs 7. Chanda Kochhar of ICICI 2. Else. 2. Except a few exceptions.1. Mallika Srinivasan of TAFE 3. Ms Kavery Kalanithi of Sun TV group has retained her position as the India‘s top paid businesswoman in 2012. majority of PSBs (Public Sector Banks) have reported a sequential decrease in their PCR. whose asset quality is better than their public sector counterparts‘.3 Crore Preetha Reddy. while private sector banks have performed better. Public sector banks. Kavery Kalanithi. Apollo Hospital Enterprises: Rs 6. Sun TV Group: Rs 57 Crore Urvi A.9 Crore PSBs‟ profits would have been wiped out were they asked to maintain 70% PCR November 18th. 3.9 Crore Vinita Singhania. Aruna Jayanthi of Capgemini India Kavery Kalanithi of Sun Tv – India‟s top paid Business woman November 18th. MD. Pay packages of Top 4 Business women in India: 1.

Westpac Institutional Bank (WIB):  The Institutional Bank. A measure that indicates the extent to which the bank has provided against the troubled part of its loan portfolio. 2012  Volvo is a Swedish truck.3 times more than its net profit. at the end of the September quarter.Clearly from the table. . 2012   Westpac Banking Corporation (Westpac Institutional Bank) received its banking licence from RBI on April 16. What is Provision Coverage Ratio (PCR) ?      PCR is the ratio of provision to gross non-performing assets (NPAs).658. then Indian Overseas Bank would have needed 680 Crores i. Westpac Banking Corporation opens its firsrt branch in Mumbai November 18th. provides advisory and wholesale banking services to Westpac‘s corporate and institutional customers. PCR = Cumulative provisions / Gross NPAs Thus. Now.80% and in case it was to maintain PCR of 70%. Gail Kelly (CEO and Managing director)  Sweden‟s Volvo to invest in India  November 18th.14 Crores and its PCR was 62. respectively. if we analyze the case of Indian Overseas Bank.e. 2012. which contributed 26% of Westpac‘s total earnings in 2010. it has a quarterly net profit of Rs 158. Were it asked to maintain PCR of 70%. one of the Australian "big four"banks and the second-largest bank in New Zealand. PCR refers to the percentage of the loan amount that the bank has set aside as provisions to meet an eventuality where the loan might have to be written off it becomes irrecoverable.43 Crores. SBI would have almost wiped out its quarterly profit. Westpac Banking Corporation    Australia‘s Oldest Bank A multinational financial services. 4.7% and 82%. bus and earth-moving equipment maker. Westpac has operated in India since 2007 through its representative office. Thus. A key relationship in analyzing asset quality of the bank. more the NPAs lesser will be the PCR. A high ratio suggests that additional provisions to be made by the bank in the coming years would be relatively low (if gross NPAs do not rise at a faster clip). Volvo is the world‘s 2nd largest truck maker by revenue. It is a measure that indicates the extent to which the bank has provided (set aside money to bear the loss) against the troubled part of its loan portfolio. we can see that SBI‘s quarterly Net Profit was 3. The country‘s top private sector banks ICICI Bank and HDFC Bank had a PCR of 78.

2012 Dr. In India.800 Crore in a joint venture with Eicher Motors.81% in September 2012. The largest online retailing corporations are E-Bay and Amazon. e-tailware e-tailing has resulted in the development of software tools for creating online catalogs and managing the business connected with doing e-tailing. the business-to-business exchange of data e-mail and fax and their use as media for reaching prospects and established customers (for example. e-tailing or "virtual storefronts" on Web sites with online catalogs. it will be investing Rs 1. 2012 e-tailing = electronic retailing      selling of retail goods on the Internet. The comment from RBI Governor has come at a time when Govt and industry are hoping of monetary easing by RBI due to falling inflation and negative industrial growth.45% in October 2012 from 7. Of this amount. Subbarao held that the inflation is ―quite high‖ at 7. sometimes gathered into a "virtual mall" Online shopping or online retailing is a form of electronic commerce Consumers directly buy goods or services from a seller over the Internet without an intermediary service. 2012 RBI Governor D. with newsletters) Business-to-business buying and selling The security of business These are known as etailwaree-commerce can be divided into:       e-tailing Gathering and use of demographic data through Web contacts Electronic Data Interchange (EDI). Volvo and Eicher have a 50:50 joint venture VE Commercial Vehicles which sells Volvo brand of trucks and Eicher brand of trucks and buses. Inflation “quite high”: Subbarao November 20th.45%. Dr Ami Bera: 3rd Indian-American elected to Congress November 19th. Ami Bera   Indian-American physician from California Won the Congressional election fromCalifornia . He remarked over the falling of headline inflation to 7.800 Crore in India in next few years. both of which are US-based. Eicher is a commercial vehicle manufacturer in India.      Volvo declared its plans to invest R s 3. What is e-tailing ? November 19th. Volvo has a good presence in Bus segment.

 Pant was India‘s defence minister between 1987 and 1989. Standard Assets 2. Just for the sake of simplicity. Pant was also the Chairman of 10th Finance Commission. Bobby Jindal: 2nd Indian-American to be elected. 2012. Pant became Deputy Chairman of Planning Commission in 2000. He was elected in 2005 and 2008. Kisan Credit Cards (KCCs) to be converted into ATM cards November 18th.39 crore KCCs to ATM cards within two years starting from April 1. Dalip Singh Saund was the 1st Indian-American elected to the House in 1950s.Pant passes away November 18th. Sub-standard Assets . K. as on March 31.39 crore KCCs and sanctioned loans to the tune of Rs 5. Asset or Loan Classification Norms The assets or loans are classified as:1.C. He is now the Governor of Louisiana. 2012 India‘s former defence minister and Planning Commission deputy chairman Krishna Chandra Pant (81) passed away. Pant was Defence Minister in Rajiv Gandhi‘s Cabinet when the CAG report on Bofors Howitzer acquisition was tabled in Parliament and defended the government during those troubled days. 2012.617 crore since the inception of the scheme in 1998-99 What is NPA ? What are the Loan classification norms ? What is Provisioning Coverage Ratio (PCR) ? November 20th. we can understand that a loan (an asset for the bank) turns as NPA when the EMI.Chidambaram informed that the State-owned bankshave been asked to strictly adhere to the March. 2. principal or interest component for the loan is not paid within 90 days from the due date.  3rd person of Indian-origin to be elected to the US House of Representatives Other Indian-Americans elected in Congress in past: 1. 2014 time-line for converting all Kisan Credit Cards (KCCs) to ATM cards.21. 2012 NPA = Non-Performing Asset  Loans and advances given by the banks to its customers is are an Asset to the bank. when the Congress party was in power under then prime minister Rajiv Gandhi. 2012   Finance Minister P. As per NABARD. the banking system has issued 11.   State-owned lenders were asked to convert more than 11. Thus a Bad Loan is an asset that ceases to generate any income for the bank.

Apart from above. is not more than 10%. RBI has directed the banks to make provisions or set aside money when an account turns bad. Restructuring of assets   ‗Standard Assets‘ upon restructuring –> ‗Sub-Standard Assets‘ . ab-initio.     . Loss Assets Now.3. as assessed by the bank/approved valuers/RBI‘s inspecting officers.  A Loss Asset is considered uncollectible and of such little value for the bank in retaining the account on its book and ideally. Banks should. „Unsecured exposure‟ is defined as an exposure where the realizable value of the security. there are Guidelines by RBI for provisions under special circumstances. Loss assets should be written off. Thus. classify an account as NPA only if the interest due and charged during any quarter is not serviced fully within 90 days from the end of the quarter. „Exposure‟ includes all funded and non-funded exposures. such loans should be written off. of the outstanding exposure. 100% of the outstanding should be provided for. Doubtful Assets 4. etc. „Security‟ are tangible security properly discharged to the bank and do not include intangible securities like guarantees. in order to ensure that banks are not affected due to defaults. If loss assets are permitted to remain in the booksfor any reason. Thus. NPA upon restructuring slips into further lower asset classification categories as per above table.

an NPA upon restructuring can also be up-graded to the ‗standard‘ category after observation of ‗satisfactory performance‘ during the specified period i. Provisioning Coverage Ratio (PCR):    The ratio of provisioning to gross non-performing assets Indicates the extent of funds a bank has kept aside to cover loan losses. 2006.e.   for PSBs (Public As of September 2012 the ratio of gross NPA to advances was the highest for SBI at 5. the instalment of principal or interest there on remains overdue for one crop season for long duration crops. NPA is defined as under: Non performing asset (NPA) is a loan or an advance where. in respect of derivative transactions. 1. Also. PSBs see a record rise in Gross NPAs. the amount of liquidity facility remains outstanding for more than 90 days. the bill remains overdue for a period of more than 90 days in the case of bills purchased and discounted. 2012 The Gross NPAs (Non Performing Assets) to advances ratio Sector Banks) rose to a record high at the end of September 2012. 7. 5.e. the overdue receivables representing positive mark-to-market value of a derivative contract. 3. November 20th. Net NPA = Gross NPA – (Balance in Interest Suspense account + DICGC/ECGC claims received and held pending adjustment + Part payment received and kept in suspense account + Total provisions held). 6. in respect of a securitisation transaction undertaken in terms of guidelines on securitization dated February 1. the instalment of principal or interest there on remains overdue for two crop seasons for short duration crops. Related News: PSBs‘ profits would have been wiped out were they asked to maintain 70% PCR As per RBI guidelines. SBI had Rs 5. on repayment of outstanding amount by the borrower. if these remain unpaid for a period of 90 days from the specified due date for payment.15 i. 4.15 in stressed assets for every Rs 100 it lent. Priority sector contributed to largest share of NPAs for SBI & its associates and nationalized banks. 2. the account remains‗out of order‘ in respect of an Overdraft/Cash Credit (OD/CC). interest and/ or installment of principal remain overdue for a period of more than 90 days in respect of a term loan. As per RBI the sudden rise in NPAs was mainly attributed to:  deterioration in asset quality of the banks .

Formerly called InfoAxe. Ltd Net worth: USD 1. and implement measures to preserve the economic value of assets. Flipora helps user remember the great websites (s)he visits (with web history search) and recommends great websites based on what user liked in the past.25 billion (as of 2011) Started his career in 1985 when the BSE Sensex was at 150. . credit risk management and the In order to improve the NPA management framework. the RBI its in 2012-13 Monetary Policy has advised the banks:   To put in place a robust mechanism for early detection of signs of distress. 2012 Rakesh Jhunjhunwala        Indian investor and trader A qualified Chartered accountant Owner of Rare Enterprises Chairman of Aptech Limited and Hungama Digital Media Entertainment Pvt. 2012 Flipora        A Social Surfing service A Personalized Search (webpage recommendation) and Discovery engine Made by Infoaxe Inc. Flipora: Social Surfing service November 20th. Rakesh Jhunjhunwala: India‟s Warren Buffet November 20th.  slowdown prevailing in the domestic economy as well as the external front inadequate appraisal and monitoring of credit proposals during the boom period of 2003-07 Why is asset quality of a bank important ? The asset quality of banks is an important because:   it is an indicator of their financial health it reflects the efficacy of banks‘ recovery environment. He is regarded as one of the best Investors in the world and is famous as ― India‘s Warren Buffet‖. Prepare a proper system-generated segment wise data on their NPA account. It aims at helping internet users find interesting web-pages on the topics that they like. Flipora grew from a service that helped users simply find sites they‘ve already visited. It provides significant social surfing recommendations to help users discover and enjoy new web content and sites.

Later. Flipora utilizes spam and phishing techniques to gather email addresses. Tax benefits for investing up to Rs 50. It is held that Flipora might also be selling email address book information to third party spammers. The scheme initially announced in Budget 2012 had allowed tax benefits for investments in stocks. Rajiv Gandhi Equity Savings Scheme (RGESS) set for launch November 20th. It helps users discover new websites based on the interests that their browsing habits shows. When one signs up (s)he inadvertently gives Flipora an access to his/her email address book and Flipora uses that information to send all of their friends. Total lock-in period: 3 years. It might be so that only MFs fitting in specific conditions would be allowed. Flipora‟s Indian Connection:   Founded by two Indian graduates from Stanford University. 2012.        . family and co-workers junk mail inviting them to also use Flip. Negative side of Flipora:    In order to promote itself.   Finance Minister P Chidambaram had approved the RGESS on September 21. It also uses the aggregate anonymized browsing histories of its millions of users to identify fresh and popular web-pages on different topics. Thus. All those opening fresh accounts would also be eligible to participate in RGESS. Exchange Traded Funds (ETFs) and MFs were included under its ambit. Jonathan Siddharth and Vijay Krishnan How does Flipora work? … Negative side of Flipora… How does Flipora work?    Flipora uses a user‘s browsing history in order to understand their interests and offer them personalized recommendations. including an initial lock-in of one year in the stock/ETF/MF in which the money has been invested. Implementation delayed due to the deliberations on inclusion ofMutual Funds (MF) in it. Flipora and Infoaxe. Flipora currently has 8 million users. further consultations with the RBI. 2012 RGESS (Rajiv Gandhi Equity Savings Scheme) The finance ministry is set to notify the Rajiv Gandhi Equity Savings Scheme (RGESS). SEBI and the law ministry on the coverage of RGESS. Open to retail investors who have opened demat accounts but have not made any transactions in equity or derivatives till the notification of the scheme.000 in the capital markets for first-time retail investors with an annual income of Rs 10 lakh. Investments can be made in various installments during a year.

 Anil Dev Singh new Chairperson of IOA  November 23rd. Quraishi resigned from his post on November 17.  Objective: To discourage people from indulging in speculative activity.Y. Maharatnas and Miniratnas would be eligible. “White Goods makers miss targets despite good demand” – What are White Goods ? November 21st. 2012  Anil Dev Singh.K. including primary gold. 2012.D.) and Justice J. Still. bullion and jewellery.  RBI‘s Monetary Policy Statement of April 2012 declared the establishment of a Working Group to analyze issues concerning to gold imports and gold loans by Non-Banking Financial Companies (NBFCs) in India. proposed that other than working capital finance. The Working Group. 2012  The RBI advised banks not to give loans for purchase of gold in any form. Microwave oven and Refrigerator. Now. towel. These were originally were/are made of white cotton or linen fabric. Investment in follow-on offers of these companies would also be eligible for tax deduction. “White Sales” . Such advances by the banks are probable to be utilized for purposes of financing gold purchase at auctions or speculative holding of stocks and bullion. Air conditioner.). Bali (retd. Kapur (retd. bed sheet. etc. banks should not be allowed to finance purchase of gold in any other form.  RBI advises banks not to grant loans for purchase of gold in any form  November 23rd. thus were referred to as White Goods. the former Chief Justice of Rajasthan High Court appointed as the new Chairperson of the Election Commission of The Indian Olympic Association (IOA) after S. pillow. 2012 What are „White Goods‟ or „Whiteware‟ ? What are „White Sales‟? ‗White Goods‘ or ‗Whiteware‘ basically refer to two groups of household items:   Household linens Household appliances Household linens  Household linens like Handkerchief.  Stocks listed under BSE 100 or CNX 100 or those of PSUs which are Navratnas. etc. RBI held that banks can provide finance for genuine working capital needs of jewelers. The other members of the panel are Justice V. they are available in other colors but still they are known as White Goods or Whiteware. This decision by RBI was made in view of significant increase in imports of gold in recent years which has put pressure on CAD (Current Account Deficit). Household appliances  Household appliances such as the Washing machine. submitted its draft report in August 2012. These products were/are often factory-finished in white enamel and thus were referred to as White Goods.

they were known as Brown Goods.000 crore this fiscal. pillowcases and other linens on sale. Thus. LIC on March.  Intel held that search it is searching for replacement for Otellini both within and outside the organization. Moody‟s strips France of AAA credit rating November 21st. 2012  Intel CEO Paul Otellini  Otellini who has worked with Intel for nearly 40 years and became CEO in 2005. Since they were were traditionally finished in brown due to their wooden or Bakelite make. and slow-moving electronic goods whereas ‘Brown goods‘ are relatively light and low -priced and fast-moving electronic goods. heavy. Govt Allows LIC‟s investment cap in firms to 30% November 23rd. Moody‘s moved France from AAA to AA1 rating. 1. LIC can now invest up to 30% of a company’s paid-up capital. high-end technical skills are required to repair the complex electronics circuits based brown goods. 2 economy France of it of its AAA credit rating. Sales of household linen in a departmental store where inventory of white goods such as sheets. bedspreads. Earlier it could invest up to 10%. etc. video recorders. radio. whereas practical application specialized knowledge is needed in servicing the white goods. The reasons given by Moody‘s for this actions:   France‘s persistent structural economic challenges Sustained loss of competitiveness in France due to rigidities in labour and services markets. towels. 2012 Moody‘s Investors Service stripped Europe‘s No. 2012 had bailed out the government‘s disinvestment process by picking up ONGC shares. What are “Brown Goods”?  Brown Goods are Electronic domestic appliances like TV. Otellini will retire in May at the age of 62 years. and low levels of innovation  Intel CEO Paul Otellini to retire  November 21st. Difference b/w „White Goods‟ and „Brown Goods‟:   ‗White Goods‘ are relatively high-priced. In general. Objective:   This can be seen as an effort to meet the disinvestment target of Rs 30. 2012 The Finance Ministry has relaxed the investment norm for Life Insurance Corporation of India. the fresh norms will enable the cash-rich LIC. .

The government aims to sell equity in various state-owned companies like Nalco. BHEL. Hindustan Copper. 2012  Finance Minister P. That has been increased by about Rs 12.Rastogi reserved its order on the interim plea of Tata Teleservices.  A single-member Telecom Disputes Settlement and Appellate Tribunal (TDSAT) bench of P. SAIL.  which invests around Rs 50.145 crore (mostly from the sale of shares in Power Finance Corp) against a target of Rs 40. the investment norms for LIC are mandated by the Finance Ministry and NOT IRDA. was proposed in the 2012-13 Budget in order to preventing tax evasion.    The insurance regulator IRDA was against LIC picking up more than 10% equity in a company. to pick up higher equity in state-owned companies during the disinvestment process. Before the ONGC disinvestment. It wanted LIC to stick to the norms applicable to private insurers.000 crore in equity yearly. An additional exposure not exceeding 10% of net assets of the scheme shall be allowed only to HFCs as part of financial services sector for prudential limits in debt oriented schemes. There is however. no change in the investment norms of other governmentowned companies.  GAAR amendments finalized: Chidambaram  November 23rd. the government subsequently appointed a committee headed by tax expert ‗Parthasarthi Shome‟ to look into their matter SEBI eases Mutual Fund exposure limit for HFCs November 23rd.600 crore via the sale of 5% of ONGC in an auction that scraped through thanks to a last-minute intervention by the LIC. MMTC and Oil India Limited (OIL).  GAAR. But it aroused sharp reactions from foreign as well as domestic investors who feared that unchecked powers to taxmen would result in harassment of the investors. The relaxation would be subject to certain conditions such as:    The securities issued by HFCs are rated ‗AA‘ or above The HFCs should have been registered with the National Housing Bank (NHB) The total investment in HFCs shall not exceed 30% of the net assets of the scheme  TDSAT reserves order on Tata Teleservices-Vodafone dispute on SMS fee  November 23rd.K.   Establishment: TDSAT: .Chidambaram held that the amendments to General AntiAvoidance Rules (GAAR). 2012  Tata Tele took Vodafone to Telecom Disputes Settlement and Appellate Tribunal (TDSAT) against Vodafone‘s notice threatening to disconnect termination of SMSes on its network over a dispute on certain fees.000-60. have been finalized.000 crore. However. Thus. Govt also aims to sell its remainder equity in companies which were privatized earlier. the government had collected a merely Rs 1. 2012 SEBI eased the the investment limit for HFCs (Housing Finance Companies) in debt mutual funds.

in which Ericsson would manage and optimize Airtel‘s mobile networks across Africa. 2012      Jamaican runner Usain Bolt was declared the winner of theIAAF World Athlete of the Year award for 2012 for the 4thtime. Best under-22 cricketer: Satyam Choudhary . 2012       Bharti Airtel Ltd. The project will result in Airtel Africa‘s 60 million plus user to have an improved experience on their network. between two or more service providers. The Central Govt has established an Appellate Tribunal known as "Telecom Disputes Settlement & Appellate Tribunal (TDSAT) under Section 14 of TRAI Act. between a service provider and a group of consumers. Other Awards:          Gavaskarwith „Polly Umrigar Award‟: Virat Kohli 100 internatonal centuries: Sachin Tendulkar Lala Amarnath award (Best all-rounder in the Ranji Trophy): Stuart Binny Best all-rounder Limited overs: Laxmi Ratan Shukla Madhavrao Scindia Trophy (Highest Run getter in ranji Trophy): Robin Bist Highest wicket-taker in the Ranji trophy: Ashoke Dinda MA Chidambaram trophy. and to hear and dispose of appeals against any decision or order of TRAI. 1997 as amended by TRAI Amendment. Javelin thrower of Trinidad and Anthonique Strachan sprinter of Bahamas won the Rising Star awards Gavaskar honored with CK Nayudu Lifetime Achievement award November 27th. India‘s largest telecommunications operator has finished an endto-end network transformation program across the 16 African countries in which it operates. 2000 to settle and adjucate disputes and dispose off appeals relating totelecommunication. Hurdler Aries Merritt of US clinched Inspiration Award David Rudisha. 2012 BCCI honored former India captain and legendary opener Sunil esteemed Col CK Nayudu Lifetime Achievement award. the appellate tribunal consists of Chairperson and two Members. Best under-19 cricketer: Vijay Zol MA Chidambaram trophy. won the Performance of the Year award Keshorn Walcott. Allyson Felix : IAAF world athletes of the year November 27th. US sprinter Allyson Felix bagged the women‟s World Athlete of the Year award. runner from Kenya. Best U-16 cricketer of 2011-12:Mohd Saif MA Chidambaram trophy. Functions: The functions of the appellate tribunal are to adjudicate any dispute between a licensor and licensee. broadcasting and cable services. Airtel Completes Largest Network Transformation in African Telecoms History November 23rd. Usain Bolt. This transformation programme by Airtel follows the 2011 declaration of an ongoing 5 year multi-country managed services arrangement.

would make sectors and sub-sectors eligible for infrastructure lending by banks and financial institutions with immediate effect.  MA Chidambaram trophy. any fresh lending to those sub-sectors from date of this circular will not qualify as ‗infrastructure lending‘. List of sub-sectors for „Infrastructure Lending‟ A credit facility extended by lenders (i. RBI has been decided to harmonize the definition of ‗infrastructure lending for the purpose of financing of infrastructure by the banks and Financial Institutions‘ with that of the Master List of Infrastructure sub-sectors‘ notified by the Government of India on March 27. but not included under the revised definition. banks and select AIFIs) to a borrower for exposure in the following infrastructure sub-sectors will qualify as ‗infrastructure lending‘: our will the the .e. The revised definition. 2012 RBI has revised the definition of „infrastructure lending‟. 2012. However. continue to get the benefits under ‗infrastructure lending‘ for such exposures till completion of the projects. The exposure of banks to projects under sub-sectors which were included under previous definition of infrastructure. Best woman cricketer (Sr):Anagha Deshpande Best umpire in domestic cricket: S Ravi Definition of „Infrastructure Lending‟ revised by RBI November 26th.

Govt hopes to fetch Rs.50% equity in NTPC.50% via an offer for sale of shares via stock exchanges as per SEBI Rules and Regulations. Includes optic fibre/cable networks which provide broadband / internet 5. Para Medical Training Institutes and Diagnostics Centres 6. Includes city gas distribution network 4. out of its holding of 84. Includes supporting terminal infrastructure such as loading/unloading terminals. CCEA clears 9.000 crore via this equity divestment. stations and buildings 2. the government‘s stake in NTPC will come down to 75% and this will assist NTPC in complying the minimum public shareholding norms. 2012 The Cabinet Committee on Economic Affairs (CCEA) has approveddisinvestment of 9.5% stake sale in NTPC November 26th. marine products and meat. Includes strategic storage of crude oil 3. for preservation or storage of agriculture and allied produce. Includes Medical Colleges. Includes cold room facility for farm level pre-cooling.13. . Post-disinvestment.Source: RBI 1.

650 crore. In 2009. SEBI has permitted ETFs (Exchange Traded Funds) that track indices to trade in the short selling market. NTPC became public with its initial public offering hitting the market in 2004. approved by the Cabinet committee on infrastructure.   NTPC is a listed ‗Maharatna‘ public sector undertaking (PSU) engaged in power generation. UP announces Rs 1. gain an access ECB in order to raise debt. 2012 ECB: External Commercial Borrowing     The government is all set to widen the scope of ECB. Index ETF‘s impact cost over the past 6 months is less than or equal to 1%. A high-level committee on ECB. Objective: This will permit companies involved in various sectors. including education and health. The waiver will include both the unpaid principal and interest. Would apply to farmers who had taken up to Rs 50.000 of loan from the UP Sahkari Gram Vikas Bank (UPSGVB) against farm land as collateral.650 crore loan waiver to farmers November 26th. after which the RBI would issue the opt notice. ECB window to widen November 29th. 2012 As part of changes in the securities lending and borrowing framework. if:   The Index ETF has traded on at least 80% of the days over the past 6 months. SEBI has also introduced roll-over facility for lenders and borrowers in the SLB segment This concerns with the short selling in the market. the government further diluted its stake in the company through Follow-on Public Offer (FPO). SEBI has also said that an Index ETF would be considered ‗liquid‘. Liquid Index ETFs shall be eligible for trading in the SLB segment: SEBI November 29th. 2012 in order to clear the proposal. This will be done via including sectors incorporated in the new definition of infrastructure. to be eligible.2 lakh small and marginal farmers. 2012 The Uttar Pradesh Chief Minister Akhilesh Yadav announced an agricultural loan waiver worth Rs 1. The short selling can be done by retail and institutional investors. Liquid Index ETFs shall be eligible for trading in the Securities Lending and Borrowing (SLB) segment. short selling pertains to selling of a stock that is not owned by the seller at the trading time. The rider is that the borrower should have repaid at least a tenth of the principal amount by March 31. In general. chaired by Economic Affairs Secretary Arvind Mayaram will meet on November 30. .     Likely to benefit about 7.

Germany. It was founded in 1997 by five founding airlines. a borrower can extend the period of borrowing. “Aapka Paisa. Rollover shall be available for a period of three months i.93 million) which is almost double the amount DLF paid. any lender or borrower who wants to extend an existing lent or borrow position shall be permitted to roll-over such positions. the original contract plus two rollover contracts. Hind Copper disinvestment rescued by LIC and PSU banks November 27th. now a lender who is due to receive securities in the pay out of an SLB session can extend the period of lending. The sail was mainly on support from the Life Insurance Corporation and public sector banks. with an annual passenger number of 678. Thus. Pepsi replaces DLF by winning 5 years sponsorship of the IPL November 27th. Likewise.As per SEBI. It replaced earlier sponsor DLF by paying Rs 396.e. headquartered in Frankfurt am Main.000 crore target for fiscal 2012-13 by disinvesting PSUs. Star Alliance has since expanded and now has 28 member airlines with more than 21. Objective:  To remove the middlemen from the system . Thai Airways International.8 crore ($71. Rollover would not be permitted for netting of counter positions. and United Airlines. 2012 In the direction of achieving Rs 30. Lufthansa. Aapke Haath” December 2nd.356 airports in 193 countries. These flights reach 1. Air Canada.5 million. the government of India managed to yield Rs 800 crore by selling shares of Hindustan Copper. 2012 Slogan for the Direct Cash Transfer scheme from Govt: Aapka Paisa. 2012 Jet Airways may get nod from Civil Aviation to join the Star Alliance with state-owned Air India. Scandinavian Airlines.100 daily departures combined. Jet Airways may get approval to join Star Alliance November 27th. The offer for sale (OFS) saw lukewarm response from large foreign institutional investors and private domestic investors like mutual funds. 2012 Pepsi won the five-year title sponsorship of the Indian Premier League (IPL). Aapke Haath (your money in your hands) Direct Cash Transfer to beneficiaries of various welfare schemes by Govt.    The roll-over shall be conducted as part of the SLB session. What is Star Alliance? Star Alliance is the world‘s first and largest global airline alliance. Sebi has asked stock exchanges to take necessary steps for implementing the circular.

beneficiaries have to furnish various paperwork for availing benefit. Modus operandi of the scheme:    Banks would be the distribution point for cash subsidy initially Subsidies would directly be electronically transferred to the bank accounts of the beneficiaries The electronic cash transfers will be based on Aadhaar platform Stages planned:   By January 1.Chidambaram. At present. and increasing awareness about the dangers posed by climate change. CTS has the potential to merge all paperwork. only about 10% of population has Aadhar cards Politically difficult to withdraw benefits from once-poor folk who become better off.       To check leakages from the system Elimination of falsification and duplication with regard to subsidies Give power of choice to beneficiaries. Cash transfers will do away with mediators of all sorts. 51 districts with high Aadhar penetration will be covered. thus reducing red tape and improving efficiency. The rest goes on administrative expenses. it costs the government Rs 3 to transfer 1 rupee to the pockets of beneficiaries. P. By December 2013. But the issues are:     Most BPL families don‘t have bank accounts Several villages don‘t even have bank branches At present. the government is basing the entire exercise on banks and using technology transfer to directly benefit the people using Aadhaar platform. 2013. the entire nation will be covered What are the challenges before Govt? Since. especially BPL No delay in transfer of money to beneficiaries Beneficiaries can access it themselves or via bankingcorrespondents who are being set up in all the areas As per Finance Minister. which will provide a strategic perspective of organizational commitment to climate change mitigation. country‘s first carbon based thematic index. Trump Card for Congress?   NAREGA and waiving off farmers‘ loans proved trump cards for Congress in the last election.India‟s first carbon-based thematic index launched  December 2nd.  What is the aim of BSE Carbonex?  This index is introduced with an aim providing a benchmark. BSE Carbonex.Chidambaram called this scheme as a ‗game changer‘  BSE Carbonex. thus reducing corruption and administrative burdens. 2012  The Bombay Stock Exchange (BSE) launched. It will enable investors to gauge the performance of the constituent companies of BSE-100 index regarding . this time the directly giving beneficiaries cash in their very own accounts may prove as Trump Card for Congress before next elections Union Finance Minister P. waste and corruption.

The Index has been developed with the help of expertise from U.235-km-long National Highway-4 (NH-4) that connects four of the 10 most populous cities in India. The „NH-4 Bank‟ plans to become pan-India player December 1st. The index will encourage people to invest in companies performing well on the index thus promoting low carbon growth. . All this happened in spite of reservations by RBI. RBI was not happy with this decision as the Finance Ministry didn‘t took RBI into loop while making this decision. The assessment will be based on the carbon emission and carbon efficiency of companies. 19 RRBs merged into 8. now 71 left December 1st.K. Constituents of BSE Carbonex are over or underweighted compared to the benchmark based on their performance in the assessment process. 2012  The government has merged 19 Regional Rural Banks (RRBs) into 8 entities. These notices were issued in context with the illegal funds transfer in Indiathrough illegal channel. Reason: As majority of the business of Ratnakar Bank comes from cities in and around the 1. 2012 Enforcement Directorate (ED) sent 220 show cause notices under Foreign Exchange Management Act (FEMA) in past 3 years. The ED did not register the cases related with illegal money transfer from external sources in respect to the state government. Foreign Exchange Management Act (FEMA):   Passed in 1999 Objective: To replace FERA (Foreign Exchange Regulations Act). Seeks to make offenses related to foreign exchange civil offenses. The Kolhapur based private bank will keep serving the local community of traders. small businessmen and farmers while it now aims to become a pan-India player.their commitment to greenhouse gases emission reduction. 1973 which had become incompatible after economic reforms and pro-liberalization policies of the Government of India. At present the numbers are as follows:   RRBs = 71 PSBs = 26 . Allows only the authorized people to deal with foreign security or foreign exchange. The Govt plans to merge more RRBs this financial year. Enforcement Directorate sent 220 FEMA Notices in past 3 Years December 2nd. 2012   Which Bank in India is often referred to as the „NH-4‟ Bank ?   The Ratnakar Bank is often referred to as the ‗ NH4 Bank‘ in thebanking circles.

Etihad has acquired or raised its stake ininternational airlines such as Virgin Australia.  The acquisition would make PVR the largest multiplex chain in India. Corporate frauds on rise in India. What is ADS?  It refers to US dollar denominated share of any foreign company trading on an American stock exchange. The step is being taken to provide European investors better access to its stock.Etihad Airways in talks to buy Jet Airways December 5th. 2012 Abu Dhabi-based Etihad Airways is in talks with Indian carrier Jet Airways for the possible buyout of the latter. 2012 . South Delhi. Etihad Airways is looking expand its global presence and is competing with its neighbors‘ fast expanding global airline Qatar Airways and the Dubai-based Emirates.3% stake in Cinemax India for an amount of Rs 395 crore in order to expand its business in India. Ireland‘s Aer Lingus. PVR:      Priya Village Roadshow (PVR) Cinemas Began as a joint venture agreement b/w Priya Exhibitors Private Limited and Village Roadshow Limited in 1995 with 60:40 ratio Commenced its commercial operations in June 1997 with the launch of PVR Anupam in Saket PVR Anupam in Saket. was India‟s first multiplex Introduced the multiplex concept in India Infosys to shift its ADS from Nasdaq to NYSE Euronext December 2nd. AirSeychelles. Germany‘s Air Berlin.Survey December 5th. PVR to buy 69% stake in Cinemax December 3rd. Etihad may buy 24% stake in Jet Airways for Rs 1.600 crore. Why Infosys has chosen NYSE Euronext?   NYSE Euronext‘s equities markets represent nearly 40% of the world‘s equities trading and are considered the most liquid of any global exchange group. Its tie-ups with exchanges in Europe will allow Infosys to expand its market base by making its stock more visible and accessible to investors in countries such as Germany and France. 2012 PVR would acquire 69. 2012 Indian IT major Infosys will shift its American Depositary Shares (ADS) from the NASDAQ to NYSE Euronext. Cinemax is owned by Kanakia Group.

As per the report:   Decline of ethical values. It will make the clearing process more efficient. Cheque books only in new format will be valid from January 1. secure and quicker. reluctant managers for taking the decisive action were major reasons. 2013 with the implementation of Cheque Truncation System (CTS-2010). weaker internal control system. distribution and procurement are most susceptible areas of fraud. How it will help? The new cheques will obviate the need of physical movement of cheques for weak regulatory mechanisms major concern. Computer-related and e-commerce frauds would become major to register and download their passbook. Around 75% frauds were committed by the employees The important findings of the Survey are as follows:      63% say the desire to exceed market expectations is the main reason to commit financial fraud 81% say financial statement fraud is a major issue 41% say they do not have a formal fraud risk management framework e-commerce & computer-related fraud to be a source of major concern in the coming years 75% all fraudulent activities. around 75% surveyed corporate in India believed that the incidences of fraud were increasing. 2012      Old cheque books will be of no use from January 1. 2012  Employee‘s Provident Fund Organization (EPFO) launched its e-Passbook service which will enable its subscribers to access their accounts online. 2012 December 5th. except Intellectual Property (IP) fraud were perpetrated by employees  EPFO unveiled e-Passbook service  December 5th. This will be possible just by electronic images of the cheque through which key information will be captured and transmitted.e. in accounts where no contribution has been received in the preceding 36 months) can‘t avail the facility. Competition to surpass market expectations was the primary reason behind financial fraud Fraud in financial statement was a primary concern Absence of recognized fraud risk management system In coming years. Subscribers can log on to www. members under exempted establishments under the EPF Scheme 1952 (as the fund details are maintained by the Trust) and inoperative members (i. .epfindia. Only new cheques with more security and standardized features will be acceptable.As per the findings of India Fraud Survey Report 2012 published by KPMG. However. Sales. Mistake of senior management tasks by the audit committees. Active Subscribers will now be able to get their e-passbook every month.

In a circular IRDA clarified that:    In case of reverse repo (lending) transactions in government securities and corporate debt securities. senior IPS officer from 1974-batch Bihar cadre. 2012 Ranjit Sinha. SBI. What is CAR?  CAR is a key indicator of a bank‘s financial strength expressed as a ratio of capital to risk-weighted assets. the exposure should not exceed 10% of all funds taken together. the exposure to reverse repo and repo transactions in government securities and corporate debt securities should not exceed 10% of investment assets of the insurer. 2012 The Insurance Regulatory and Development Authority (IRDA) said that life insurance companies are not allowed to take part in repo transactions.000 in the bank. exposure should not exceed 10% of the fund size. This will enhance bank‘s Capital Adequacy Ratio (CAR) to over 13%. 2012 In order to boost the strength of country‘s largest bank. has taken the charge as the new CBI Director. government is expected to infuse Rs 4. Ranjit Sinha becomes CBI Director December 7th. ife insurers not allowed to participate in repo transactions: IRDA December 7th. All companies would have to take prior sanction from investment committee before participating in repo transactions. Even at segregated fund level. What is the need for capital infusion in banks?  The capital infusion is necessary to boost up the core capital base of the state-run lenders hit by bad loans and poor asset growth. The tenure of repo transactions shall not exceed a period of six months. For non-life insurers. The underlying debt security would have to be listed and have a minimum rating of AA or equivalent    .What changes have been made in new cheques? The features which are new:      Bank logo printed with invisible ink (ultra voilet) VOID pantograph Chequer printer details/CTS-2010 New Rupee symbol Signature space indicator Government to pour in Rs 4.000-cr capital into SBI December 7th.

 Section 13A of IT Act 1961 exempts political parties from tax on their income. The low score of India is attributed to the recent scams and incidents of corruption in the public sector involving government officials. Nokia will lease it back on a "long-term basis". The company is also in trouble as it recently recorded its sixth consecutive quarterly loss as it proceeds with a vast restructuring programme.  Reverse repo and repo transactions in corporate debt securities would not be allowed b/w insurer and its promoter group entities In terms of matters like accounting methodology and reporting of trades for reverse repo and repo transactions. 2012 Nokia will sell its headquarter building in Espoo.500 job cuts from 2007 to 2011. Denmark.000 jobs or 4% of its workforce globally. more than half of them in the United States. 2012  In the last 5 years the tax-exempted income of the 10 main political parties has reached Rs. the bank will have 4. 20. 2. Pakistan and Bangladesh. Finland for $222 million as part of a drive to sell assets. private officials and private companies. The cuts are expected to bring at least $1. North Korea and Somalia scored just 8 to be ranked lowest on the index. India stood below Sri Lanka Iran. they have to maintain a book of account for donations or income above Rs. Afghanistan. and China. India ranked 94th in corruption perception list December 10th.  Rs. Finnish real estate company Exilion will buy the building located by Baltic Sea. 2.490 cr: Tax-exempted income of parties in 5 years  December 7th. Citigroup is slashing jobs since 2007 when it announced 96.000 branches around the world.1 billion in annual savings starting in 2014. The will also shrink its global presence as it will shut down 84 branches in five countries. 2012 Transparency International has ranked India at 94th place in itsCorruption Perception Index 2012 (CPI) which enlisted 176 countries.000. Citigroup to slash 11. After the restructuring.490 crore.Nepal. companies would have to follow the January 2010 directions of RBI. while it ranked better than .000 jobs December 10th. However. Nokia to sell its Finland head office building December 11th. 2012 With an aim to cut expenses and make the bank more manageable Citigroup Inc is cutting 11. India scored 36 on a scale from 0 (most corrupt) to 100 (least corrupt). Finland and Switzerland topped the index with a score of 90 followed by Sweden with a score of 88.

inflation level was as high as 10% to 11%. ICICI December 8th. BaFin. Bank of Mauritius. Rangarajan had considered inflation rate at 6% to 7% as ―acceptable level‖. and Monetary Authority ofSingapore. Nepal Rastra Bank. Rangarajan pined not to alter the RBI‘s inflation comfort level from 4-5%. RBI‟s inflation comfort zone need not be changed: Rangarajan December 8th. Dubai Financial Services Authority. Bank of Russia and Monetary Authority of Singapore. RBI is not reversing its monetary policy position on the back of . ICICI Bank is the largest private sector bank. and it was desirable to control inflation to 4-5% which was considered as comfort zone by RBI. In 1998. Why only for these two banks?  SBI is the largest bank in the country with maximum foreign officers among Indian banks. the CPI methodology has been updated to provide for year-over-year comparisons. High inflation caused problems on the exchange rate side. which also have a considerable presence overseas. At that time. This concept was suggested by Basel Committee for Banking Supervision (BCBS) October 2010. Central Bank of Bahrain. is to keep lenders aware of the latestglobal regulations and to evaluate their worthiness for global operations. What is the role of “Supervisory College”?  The main role of the supervisory college. Supervisory college will help in reducing supervisory overlap and filling in supervisory voids for better supervisory co-operation articulated in Basel-2 framework. 2012  Prime Minister‘s Economic Advisory Council (PMEAC) C. Who are the supervisors for these banks? SBI to have 9 host country supervisors which are:  Bangladesh Bank.From 2012. ICICI Bank to have 7 host country supervisors which are:  Central Bank of Bahrain. Financial Services Authority (London). 2012 The RBI has for the first time established the „Supervisory College‟ for cross border supervision of State Bank of India(SBI) and ICICI Bank. Dubai Financial Services Authority. Federal Financial Services Authority (BaFin). National Bank ofBelgium. Financial Services Authority (London). National Bank of Belgium. RBI sets up supervisory colleges for SBI. comprising local andinternational regulators.

It has asked the Centre to take steps to slash rising fiscal deficit. where a large part of agriculture is monsoon dependent. so it is also called SARS-CoV. which has been extended by a year. It infects both humans and animals (livestock. The WHO has instructed member countries. In 2011. These can be possible points through which dangerous pathogens can be brought by international passengers.2%. birds. The rupee has depreciated considerably against the dollar in the last one-and-ahalf years. During October.3% in the second quarter.). against screening this virus at point of entry. and supply constraints. . 12 ports and 7 international land borders catering to international traffic. under the internationalhealth regulations. SARS is a dramatic example of how quickly world travel can spread a disease. and growth for the entire financial year has plummeted to a 10-year low. Currently it has depreciated to Rs 55 per dollar. Why some experts believe inflation comfort zone should be changed? Some experts believe that in present conditions where fuel price has been increased. consumer price index-based inflation rate in the US stood at 2. What is SARS?      Severe Acute Respiratory Syndrome (SARS) A serious form of pneumonia caused by a member of the coronavirus family of viruses (the same family that can cause the common cold). inflation can only be reduced in a phased manner in the medium-to long-run. and from there it transmitted to several other countries. Health units. The economic growth has declined to 5. The organization encourages all member states to continue their surveillance for Severe Acute Respiratory Infections (SARI) and is currently reviewing the case definition and other guidance related to the novel SARS-coronavirus. minimum support price being increased every year. fearing transmission of a new respiratory virus that belongs to the same family as the deadly Severe Acute Respiratory Syndrome (SARS). It had spread like a pandemic in Hong Kong in March 2003. in a country like India. India has 25 airports. The 12th Five Year Plan seeks to establish health surveillance units. They think that.75% in India. from 6-7% to 5% and then to 4% since targeting 4-5% inflating in short run would be difficult. isolation wards and quarantine facilities in 23 additional airports. ports and land borders. the exchange rate was Rs 48 per dollar. India is keeping a closewatch on incoming tourists. etc. exist only at 21 points most of which were established way back in 1950. inflation normal cannot be four-five per cent. 2012 As instructed by the WHO.inflationary expectations. however. against 9. WHO instructs India to keep lens on tourist for SARS-like virus December 13th. The deadline was originally till the end of 2012.

dry cough. 2012 Global retail major Walmart has reported in its disclosure that it has spent close to USD 25 million (aboutRs. and myalgia (muscle pain).How SARS spreads? When someone with SARS coughs or sneezes. The SARS virus may live on hands. tissues. and an upper respiratory tract infection. The disclosure has come at a time when India has just opened up its multi-brand retail sector for foreign companies after the government won the vote over the FDI policy in retail. People with active symptoms of illness are contagious. . infected droplets spray into the air. muscle pain. as SARS is a viral disease. in both houses of parliament. One can catch the SARS virus if you breathe in or touch these particles. headaches. sore throat. Do not share food. Walmart spent $25 million in lobbying to enter Indian retail market December 13th. Prevention:   o  Reducing contact with people who have SARS Hand hygiene is the most important. The virus may be able to live for months or years when the temperature is below freezing. and other surfaces for up to 6 hours in these droplets and up to 3 hours after the droplets have dried. The treatment is only supportive. where it has been shown to live for up to 4 days. Symptoms: It includes flu-like symptoms such as fever. or utensils. drink. runny nose. malaise. diarrhea. including on the issues related to "enhanced market access for investment in India". The sector is also lucrative as it promises growth of 15-20%over the next 5 years. they should be kept isolated in the hospital. Treatment:    There is no cure or preventive vaccine available currently. Walmart stores has been waiting for a long time to enter the expanding retail sector in India which is currently of the size of about USD 500 billion and is pegged to cross USD one trillion mark by 2020. thus Wash hands or clean them with an alcoholbased instant hand sanitizer. Live virus has even been found in the stool of people with SARS. Avoid travel to places where there is an uncontrolled SARS outbreak. If a person is suspected of having SARS. shortness of breath.125 crore) since 2008 on its various lobbying activities. Antibiotics are ineffective.

The company showed $5. Inc. packaging and functional printing and enterprise services. but they are required to file their lobbying disclosure reports every quarter with the US Senate.500 stores in 15 countries. Why Apple and Google came together despite being competitors?  Despite being competitors in the smartphone market. while fulfilling theirbusiness requirements. 2012 Apple Inc. came together to offer more than $500 million to buy Eastman Kodak Co. The two groups had separately offered less than $500 million for Kodak‘s portfolio. the companies are allowed to lobby for their cases in various departments and agencies in the country. Robson Walton (Chairman) 8. It plans to exit bankruptcy in the first half of 2013. It is also following a plan to shrink the company and focus less on photography and more on commercial. is selling patents to fund a turnaround. the two companies have joined hands in order to reduce the individual cost of purchasing the Kodak patents. What is Walmart?           Wal-Mart Stores. Why Kodak is its selling patents?    Kodak which sought protection under Chapter 11. branded as Walmart US multinational retailer corporation Runs chains of large discount department stores and warehouse stores. under 55 different names Walmart‘s investments outside North America have had mixed results: its operations in the UK. World‘s third largest public corporation Biggest private employer in the world with over 2 million employees Largest retailer in the world Family-owned business (as the company is controlled by the Walton family who own a 48% stake in Walmart) S.1 billion in assets and $6. and Asian makers of Google‘s Android phones.75 billion in debt in its bankruptcy filing. Golden Cards for industrialists in Uttar Pradesh  . South America and China are highly successful. These kinds of partnerships in patent sales are very typical because they allow competitors to neutralize potential infringement litigation.In US. Companies in Apple-led group: Microsoft and Intellectual Ventures Management LLC Companies in Google-led group: RPX Corp. Apple joins hands with Google to bid for over $500 million Kodak patents December 13th. whereas ventures inGermany and South Korea were unsuccessful. and Google Inc. (EKDKQ)‘s patents out of bankruptcy.

2012 The Uttar Pradesh govt will issue Golden Card to to industrialists andindustrial associations for easy access to its offices. online travel sites and BFSI industry. the Friday following Thanksgiving in USA. who intend to invest more than Rs. “Cyber Monday”: Google India collaborates with e-Commerce companies to bring in Cyber Monday December 11th. 2012 India will celebrate ‗Great Online Shopping Festival‘ where shoppers. A maximum of two cards will be allowed per association while state-level industrial associations will be allowed one card each. Promoters of such projects or their nominated representative will be able to access this facility. Indian Industries Association (IIA). The term "Cyber Monday" was created by marketing companies to persuade people to shop online. local & classified. Germany. Associated Chamber of Commerce and Industry (Assocham) and Federation of Indian Chambers of Commerce and Industry (FICCI). will be offered best deals from e-Commerce. UK. which is being brought here by Google India with other eCommerce companies. no need of of introduction from an existing customer of the bank for opening of bank accounts December 15th. The concept. What is a Golden Card? A Golden Card will be like an identity (ID) card with the holder‘s photo. and Japan. state presidents and general secretaries of national-level industrial associations such as the Confederation of Indian Industries (CII). The right to visit card will be treated at par with ID cards issued by the secretariat. Colombia. Chile. It will allow entry of industrialists to the state secretariat and government departments on priority basis without hurdles.200 crore in Uttar Pradesh. RBI eases KYC norms. will also be issued the cards.December 11th. What is Cyber Monday?   Cyber Monday is a marketing term for the Monday after Black Friday. is similar to ― Cyber Monday” which is observed in majorly in the US and several other countries including Canada. 2012 . via online shopping. Portugal. What is the objective of this?  The main objective of organizing this event is to encourage online shopping and boost the role of e-Commerce in the country. To whom these cards will be issued? The cards will be issued to national presidents. PHD Chamber of Commerce & Industry (PHDCCI). Esteemed investors.

among others. The RBI has also scrapped the requirement of introduction from an existing customer of the bank for opening of bank accounts since introduction is not necessary for opening of accounts under PML Act and Rules or Reserve Bank‘s extant KYC instructions. 2002 and to fulfill Know Your Customer requirements. The SEBI rules apply to all AIFs. What are AIFs? Categories of AIFs. Mutual funds under the SEBI (Mutual Funds) Regulation.  Category-II AIFs: These can invest anywhere in any combination but are prohibited from raising debt. It has said that banks can accept any of the documents such as Passport. -ves / +ves about AIFs.The RBI has eased the burden of producing multiple documents to open a bank account. Drivers‟ Licence. as also all others that are not classified as category I or III. debt funds or fund of funds. 1999 are not covered under the AIF Regulations. Who are excluded from AIF Regulations. . 2012 include India Realty Fund. It is a condition that the address on the document submitted for identity proof should be the same as that declared in the account opening form. Aadhaar letter. SEBI allows 12 more AIFs December 15th. The RBI has also scrapped the requirement of introduction from an existing customer of the bank for opening of bank accounts since introduction is not necessary for opening of accounts under PML Act and Rules or Reserve Bank‘s extant KYC instructions. PAN Card. 1996 and SEBI (Collective Investment Schemes) Regulations. real estate funds and hedge funds. SEBI or other regulators and include Social Venture Funds. and NREGA Job Card as proof of identity as well as address. Objectives of SEBI for allowing more AIFs. 2012? Category-I AIFs: Those funds that get incentives from the government. Why the banks have been asking for multiple documents?   The banks have doing so to comply with their obligation under the Prevention of Money Laundering (PML) Act. private equity and hedge funds. As per the SEBI guidelines. Capaleph Indian Millennium Small & Medium Enterprises Fund and Capaleph Indian Millennium Private Equity Fund. Dar Mentorcap Film Fund. AIFs can operate broadly in 3 categories. They includePE funds. including those operating as private equity funds. except for meeting their day-to-day operational requirements. Investment The 12 AIFs that have been registered with SEBI since October 10. 2012 SEBI has allowed 12 entities to establish Alternative Funds (AIFs) for real estate. Venture Capital Funds and SME Funds. Infrastructure Funds.

While they are subject to less regulation. employee welfare trusts. including PEs. and makes it mandatory for them to register with SEBI. which employs diverse or complex trading strategies and may employ leverage including through investment in listed or unlisted derivatives. 2012 The Department of Electronics and Information Technology (DeiTy)has made it mandatory for all electronics goods manufacturer in the country to get standard compliant certificate from the BIS. -ves about AIFs  Many alternative investments also have high minimum investments and fee structures compared to mutual funds and ETFs. +ves about AIFs Alternative investments are favored mainly because their returns have a low correlation with those of standard asset classes. they also have less opportunity to publish verifiable performance data and advertise to potential investors. securitization trusts.   Applicable for electronic products imported or manufactured after April 2013. Who are excluded from AIF Regulations. ESOP trusts. holding companies. AIFs are basically established or incorporated in India for the purpose of pooling in of capital from Indian and foreign investors for investing as per a pre-decided policy. collective investment schemes. encouraging formation of new capital and consumer protection. These funds can be open ended or close ended. Objective: To curb the grey market for sub-standard electronics products How this move would help? What are the items covered under new standards? . 2012? Followings are excluded from the ambit of AIF Regulations:  Family trust. Objective:  o  SEBI aims to bring unregulated and lightly regulated investment funds like hedge funds and private equity-venture capital funds under its ambit with a view to systemic stability. increasing market efficiency. Category-III AIFs: Those funds that trade with a view to making short-term returns and include hedge funds. and any such pool of funds which is directly regulated by any other regulator in India are expressly excluded DeiTy (India) to impose its own standard for electronic products December 15th. etc. The regulation covers all AIFs. gratuity trusts. real estate funds and hedge funds.

LED televisions. home loan borrowers.5 % of total loans. etc. musical systems. Lok Sabha approves Enforcement of Security Interest and Recovery of Debts Laws (Amendment) Bill. Why this amendment was essential? How the current amendment would help? In current scenario. deploy more funds for credit disbursement to retail investors. without fearing for recovery. amplifiers. 2012   . the DeiTy has listed 15 product categories the sellers of which are mandatorily required to obtain standard compliant certificates before selling in India. Although these two acts have helped in reducing the NPAs. the department plans to include mobile phones and some other electronics goods to make them follow the new standards. enacted the RDBF Act (Recovery of Debts due to Banks & Financial Institutions) in 1993 and SARFAESI Act (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest) in 2002 for the purpose of expeditious recovery of non-performing assets (NPAs) of the banks and FIs. Those include laptops. Further. tablets.23 lakh crore which are currently equivalent to approximately 3. 2011 December 15th. enhance the ability of the banks to extend credit to both corporate and retail borrowers. scanners. 2011. video monitors. therefore. banks have sent certain suggestions for further strengthening of the secured creditor rights. reduce the cost of funds for banks and their customers and reduce the level of non-performing assets. microwave ovens. telephone answering machines. printers. Wipro‟s Sunflower Vanaspati brand sold to Cargill India December 15th. The Government. It would strengthen the ability of banks to recover debts due from the borrowers. It would enable banks to ameliorate their operational efficiency. mandatory registration of subsisting security interest (equitable mortgages) would promote innovation in credit information. LCD. where Non-Performing Assets (NPAs) of all nationalized banks in India stand at Rs 1. 2011 which seeks to change the system of debt recovery. 2012 Lok Sabha approved Enforcement of Security Interest and Recovery of Debts Laws (Amendment) Bill. wireless keyboards. electronic clocks and set top boxes among others. In second phase.   Under this. How the current amendment would help?  The Bill seeks to amend the SARFAESI Act and RDBF Act so as to strengthen the regulatory and institutional framework related to recovery of debts due to banks and financial institutions through the Enforcement of Security Interest and Recovery of Debts Laws (Amendment) Bill. optical disc players. thus bringing about equity. it was imperative on the behalf of government to ease the burden of NPAs on banks and financial institutions (FIs) which were facing numerous problems in recovery of defaulted loans on account of delays in disposal of recovery proceedings. The Bill seeks to convert any part of debt of a defaulting company into shares by the asset reconstruction company.

with Rath. credit cards and tractor loans.  The acquisition is expected to make Cargill. to March 31.  Ratan Tata will be conferred with the honorary title of Chairman Emeritus. ICICI Bank opens 101 gramin branches across six states December 18th. 2012 The RBI extended the deadline given to shift to new cheques (CTS-2010 Standard cheques). Deadline for new cheque standard (CTS-2010) extended to March 31. Mistry has also been appointed as the Chairman ofTata Steel and Tata Chemicals. the company had shifted its shares from NASDAQ to NYSE to give its European investors better access to its stock. About 66% of the equity capital of Tata Sons is held by philanthropic trusts endowed by members of the Tata family. Wipro wanted to get out of its traditional edible oil business. Madhya Pradesh and Tamil Naduwhich will provide basic banking services such as savings bank account. (that processes 4. 2013 December 19th. Tata Sons is the promoter of the major operating Tata companies and holds significant shareholdings in these firms. Sunflower Vanaspati is made out of edible vegetable oil and soya oil. fixed and recurring deposit. Infosys ADS begins trading on NYSE December 18th. Earlier.000 tonne per day) the largest vanaspati player.Gemini and Nature Fresh Purita brands in its portfolio.Rajasthan. . Gujarat. 2012 Recognizing the potential of rural India and importance of financialinclusion ICICI Bank opened 101 gramin branchesacross six states namely across Maharashtra. The consumption of vanaspati oil is declining as people are choosing refined oil over it because of health concerns. with advanced security and standardized features. acquired theSunflower Vanaspati brand from Bangalore based IT major Wipro.Cargill India. Tata Sons appoints Cyrus Mistry as it Chairman December 19th. 2013. They will also service business correspondents. 2012 Cyrus P Mistry will be the Chairman of Tata Sons from December 28 following retirement of Ratan N Tata. 2012 Infosys American Depository Shares (ADS) have begun trading on NYSE (New York Stock Exchange). Very recently. US-based food producer and marketer. remittances. Andhra Pradesh. The company is also in the process of listing its ADS on the Paris and London exchanges of NYSE Euronext. it had set a December 31 deadline.

Who is Sudeep Sen?    An alumnus of Delhi University has an MS from the Journalism School of Columbia University. His poems have been translated into 25 languages and have featured in international anthologies from Penguin. Received several awards and fellowships. Routledge. 2012 Poet Sudeep Sen from Delhi has been invited as a special guest toaddress the Nobel Laureate Week being held in Saint Lucia. passed away  December 22nd. The card can be used to deposit or withdraw money from various customer service points using finger print authentication. Macmillan. It will facilitate financial transactions without a bank account and will also be used to receive government subsidies and benefits. Knopf. and Granta. a sovereign island country in the eastern Caribbean Sea. New York. Everyman. Random House. while Arthur Lewis won the Nobel Prize in Economics in 1979.  Norman Woodland. Walcott won the Nobel Prizein Literature in 1992. Why Nobel Laureate Week Lucia? Who is Sudeep Sen? is celebrated? What is special about Saint The Nobel Laureate Week starts from January 23. co-inventor of bar code. Norton. the birthday ofDerek Walcott and Arthur Lewis. every year to honor the Nobel Laureates who belong to Saint Lucia. Saint Lucia is home to Nobel Laureate and noted playwright Derek Walcott. Dali’s Twisted Hands.   Mr. Bloomsbury.The bank is assisting in electronic benefit transfers for disbursement of wages to the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) workers and the Social Security Pension beneficiaries. Mr. Sen is the first Indian to be given the honor. first Indian to address Nobel Laureate Week December 15th. Saral Money Prepaid Card    It also launched the Saral Money Prepaid Card along with theUnique Identification Authority of India (UIDAI). Books authored by him:  The Lunar Visitations. HarperCollins. Postmarked India: New and Selected Poems. What is special about Saint Lucia? The country claims to have largest number of per capita Nobel Laureates than any other country. 2012 . Sudeep Sen.

50 lakh for all trading members and brokers with Algo. India clinches World Cup Kabaddi Tournament 2012 in both Men‟s and Women‟s category December 22nd. Various BMC fixed by SEBI:     Rs. They are widely used in supermarket checkout system. hexagons and other geometric patterns in two dimensions (2D). All stock brokers and trading members of exchanges having nation-wide trading terminals will be liable to this rule. later. tighten norms December 20th. Barcodes originally were scanned by special optical scanners called barcode readers. dots. and may be referred to as linear or one-dimensional (1D). Later they evolved into rectangles. tracks mail. the Securities and Exchange Board of India (SEBI). Tags: 2012 • Banking • December 2012 • IBPS • Sports RBI disallows banks to issue offline debit cards.     Norman Woodland (91). 2012 Market regulator. co-inventor of the bar code. 2012 India clinched World Cup Kabaddi Tournament 2012 in both Men‟s and Women‟s category. and is in near universal use across transportation. It was a 3rdconsecutive victory of the title in the Men‘s category and 2nd consecutive time in the Women‘s category. it would be 40% of the prescribed BMC deposit requirements. Minimum 50% of the deposit shall be in the form of cash and cash equivalents. while Indian women defeated Malaysia. The very first scanning of the now omnipresent Universal Product Code (UPC) barcode was carried out in 1974. 2012 .25 lakh for proprietary trading and trading on behalf of client without Algo Rs. Exchanges will not grant any exposure against the BMC deposit. Initially barcodes systematically represented data by varying the widths and spacings of parallel lines. industrial and shipping industries worldwide.10 lakh for only proprietary trading without algorithmic trading (Algo) Rs. scanners and interpretive software became available on devices including desktop printers andsmartphones. has increased the Basic Minimum Capital (BMC) deposit for stock broker and trading members to up to Rs. speeds passengers through airline gates. SEBI increases BMC deposit for stock brokers December 22nd.15 lakh for trading only on behalf of client (without proprietary trading) and without Algo Rs. encodes medical patient information. For those not having nation-wide trading terminals. consumer products.10 lakh. passed way. Indian men thwarted arch rival Pakistan. What is Barcode? A barcode is an optical machine-readable representation of data relating to the object to which it is attached.50 lakh from the earlier maximum of Rs.

including co-branded debit cards where there is an immediate debit to the customers‘ account. In 463 ODIs he played. He had made his debut in this format against Pakistanin 1989. Sachin Tendulkar „The God of Cricket‟ retires from ODIs December 26th. He will now remain active in only the Test arena. Put in place an effective mechanism for redressal of customer complaints and must make available the name. address and contact number of important executives as well as the grievance redressal officer of the bank on its the website. He keeps a record of hitting 49 hundreds in the format. designation. Discontinue such operations within a period of six months. and where straight through processing is involved. Create a system of acknowledging customers‘ complaints for follow-up. are not allowed to issue offline-debit cards. he piled up a total of 18. The responsibility of the bank for the nonexecution or defective execution of the transaction is limited to the principal sum and the loss of interest subject to the provisions of the law governing the terms.  Issue only online debit cards. Tendulkar was part of the 2011 World Cup winning Indian team after five . Naina Lal Kidawai took charge as the first woman President of Federation of Indian Chambers of Commerce and Industry (FICCI). 2012         Head of HSBC India.83. Specify that banks will be responsible for direct losses incurred by a cardholder due to a system malfunction directly within the bank‘s control. As per the recent directives banks have been told to: Issue debit cards if demanded to customers having Savings Bank and Current Accounts but not to cash credit or loan account holders. Banks. henceforth. including a double hundred — the first in this form of the game. Banks would not be responsible for any loss caused by a technical breakdown of the payment system if the breakdown of the system was recognizable for the cardholder by a message on the display of the device or otherwise known. such as complaint number / docket number Naina Lal Kidwai becomes first woman president of FICCI December 20th. It brings an end to his 23-year career in ODIs.The Reserve Bank of India (RBI) in its recent directives told the banksnot to allow offline debit cards. regarding the issue and use of such cards. Curtail the misuse of lost/stolen cards by issuing issue cards with photographs of the cardholder or any other advanced methods that may evolve from time to time. 2012 Sachin Tendulkar had announced his retirement from One-Day format of cricket.426 runs at an average of 44. Undertake review of their operations/issue of debit cards on half-yearly basis. Provide cardholders contractual terms and conditions in written form. Kidwai is also a recipient of the country‟s prestigious civilian award Padma Shri for her contribution to trade and industry.

2012 Swiss bank UBS has been fined $1. He smashed his last ODI hundred in the Asia Cup in Bangladesh which took his tally of international hundreds to unprecedented 100 international tons. While JRD had left the chairman‘s position at the Tata group trusts. Ratan Tata.92 billion after being accused by U. The Bill does not contain controversial clauses of allowing banks to trade in futures and keeping the sector outside the purview of Competition Commission as it was earlier proposed. Highlights of the Bill: .previous appearances. paving way for foreign investments in the sector and establishment of new privatebanks and also to achieve greater financial inclusion. Banking bill approved in Lok Sabha December 23rd. It is the second biggest fine ever on a global bank after HSBC which was recently fined a record $1. JRD Tata had also been conferred this title by Tata Sons. $1. Apple stands at third position with expected 10% market share in 2012. Ratan Tata would continue to remain the chairman of these trusts. Sir Dorabji Tata Trust and Sir Ratan Tata Trust. 2012 Outgoing chairman of the $100 billion Tata group. It was 24% in 2011. Cyrus Mistry will take the chairmanship. Ratan Tata is chairman emeritus of Tata Sons December 24th. Before Ratan Tata. Tata will not attend Tata Sons board meetings or have any day-to-day responsibility. Samsung displaces Nokia to become World‟s No.S. has been conferred the honorary title of Chairman Emeritus of the group by Tata Sons.5 billion fine on UBS over Libor manipulation December 24th.1 mobile brand December 24th. 2012 Lok Sabha passed the Banking Laws (Amendment) Bill 2011. As chairman emeritus. Samsung is expected to make around 29% of total worldwide cellphone shipments.5 billion over the manipulation of Libor benchmark rate. prosecutors of failing to enforce rules designed to prevent money laundering. which together have 66 per cent stake in Tata Sons. 2012 Samsung has left Nokia behind to gain the world‘s leading top mobile brand for the year 2012. Nokia‘s share for 2012 will fall to 24% from the 30% market share in 2011. This is the first time in 14 years that Nokia is not on top of the global cellphone business on an annual basis.

the National Academy of Letters in India. 2012 Blackberry smartphone manufacturer Research-In-Motion (RIM) has appointed Ranbir Kapoor as its brand ambassador in India. Jeet Thayil among 24 selected for Sahitya Akademi Awards 2012 December 26th. It will improve penetration of banking services in India.. making the IT giant the only to get this recognition. The award is conferred for the works done in 24 major languages of India including English. has been one among the 24 authors selected for Sahitya Akademi Awards 2012. BlackBerry appoints Ranbir Kapoor as its brand ambassador December 26th. Inc. IntercontinentalExchange. known as ICE. About Sahitya Akademi Award The award was constituted in 1954 to honor outstanding works in the sphere of literature by Sahitya Akademi. from 1%. whose novel Narcopolis was nominated for the Booker. 2012 China has named Infosys in the list of 100 main liaison service outsourcing firms. more than 200 years old. He was selected for his poetry collection „These Errors are Correct‟ in English. IntercontinentalExchange Inc. China names Infosys among 100 key outsourcing companies December 26th.rounded portfolio of capabilities. 2012 Jeet Thayil. is an American financial company that operates Internet-based marketplaces which trade futures and over-the-counter (OTC) energy and commodity contracts as well as derivative financial products.. but still needs the clearance by regulators and shareholders of both companies. Cap on voting rights of private investors in PSBs raised to 10%. IntercontinentalExchange (ICE) to acquire NYSE December 26th. exemplary performance and strong growth in China made its way into the list. CCI to regulate mergers and acquisitions and will also have power to investigate and clear mergers and acquisitions in banking industry This Bill is expected to provide large number of new banking licences in near future. New York Stock Exchange (NYSE) for about $8 billion. from 10 % which will boost foreign investments. is buying.    Voting rights of investors in private sector banks raised to 26 %. . 2012 Atlanta based exchange. Indian company Infosys well. The deal has been approved by the boards of both companies. RBI allowed to supersede boards of private sector banks. It is likely to close in the second half of 2013.

Service outsourcing has been identified as a key industry to be developed in China. a different kind of celestial fireworks will also take place when a gas cloud with three times Earth‘s mass will collide with Sagittarius A(super-massive black hole) located at the centre of the galaxy around 25. which is believed to be the most widely observed comet of the 20 thcentury and one of the brightest seen for many decades.000 crore Some issues of disagreement also there To take the initial steps towards operating a “ranging station” that will help accurately fix the location of satellites. the two countries finalised 10 agreements. 2012 SEBI gave its nod to MCX Stock Exchange (MCX-SX) for going live in new product segments such as equity. Rare supercomet “C/2012 S1 (ISON)” to appear brighter than Moon in 2013 December 29th. Equity participation through ONGC-OVL On Russian president Vladimir Putin‘s visit to India. rushing towards the Sun from the outer solar system and at its peak it may outshine the Moon in November. India signs military deal with Russia December 28th. SEBI gives final approval to MCX-SX December 26th. At the 12th annual summit. This is ISON‘s first trip to the inner solar system.6 billion years ago.000 crore. Its observations will also throw light on material in the outer solar system 4. Among them were two military contracts. worth about Rs. 2012 As per astronomers. 20. 20. little progress could be made on the issues of disagreement which include:   Delay in commissioning aircraft carrier Gorshkov Impasse over clinical trials in Russia . It is governed by the Ministry of Commerce.000 light years away. 2013. Issues of disagreement and more: However. In 2013. when ISON formed. 2012       Vladimir Putin visits to India $2 billion investment fund Finalised 10 agreements Two military contracts. both nations moved further to strengthen their economic relations by inking a pact on a Kremlin-backed $2 billion investment fund and consenting to open talks on a Comprehensive Economic Partnership Agreement (CEPA) that will also involve Belarus and Kazakhstan. Scientists expect it to put as good a show as Hale-Bopp did in 1997. C/2012 S1 (ISON). Earth will witness a rare supercomet. wholesale debt (bonds) and interest rate derivatives. worth about Rs.

an Indian company operating in Russia. it will help in mitigating the risks that might arise from the global economic situation. the bank would have access to interesting and attractive projects from an investment point of view. Acquiring equity stake in discovered or producing assets and in proposed Liquefied Natural Gas (LNG) projects in Russia. India has already signed the military side of the deal with Glonass. a group of 34 satellites in 2011. Both the groups would invest up to $1 billion each in the consortium. India‘s State Bank of India (SBI) and Russian sovereign wealth fund Russian Direct Investment Fund (RDIF) came together to ink an MoU for setting up a$2 billion investment consortium. its sister company. Russian company Sistema who suffered a setback after the Supreme Court cancelled all 2G licences. India‟s interests with Russia in Energy sector:   Equity participation through ONGC-OVL in existing and new projects in Siberia. including the one related with . A military side pact on receiving precision signals from Glonass was inked in 2011. How this consortium would work? It will facilitate access to long-term capital in Russia and India and actively promote mutual investments. As the consortium is supported by the government of the two nations. 2012 With an aim to attract greater foreign expertise in the domain of asset reconstruction. Both countries also agreed to take the initial steps towards operating a “ranging station” that will help accurately fix the location of satellites. the government has raised the foreign investment ceiling in Asset Reconstruction Companies (ARCs) to 74% from previous 49%. FDI ceiling in ARCs increased to 74% December 28th. 2012 To encourage investments b/w the two nations. Russia‘s Far East and the Arctic Shelf. However. creation of value addition in the extraction and processing of natural resources as well as development of manufacturing businesses and service sector companies. indicated its faith in the India withGlonass. SBI. With the partnership. which has moved beyond investment (Sakhalin-I) to direct trade (Gazprom-Gail) and is now moving towards joint investment in downstream and upstream sectors. Both nations also decided to further their partnership in the energy sector. signing two pacts in the satellite sector. RDIF collaborate to form $2 billion consortium December 28th. FDI in ARCs would need to abide by the Foreign Direct Investment (FDI) policy. It will emphasize on projects accelerating towards higher purchasing power of the population.   Applicability of the Nuclear Limited Liability Act on six new reactors to be set up by Russia at Kudankulam Inability of Russian companies Sistema and Severstal to move ahead with their investment plans in India Tax imposed on Imperial Energy.

in context of Indian economy.sectoral caps. „Foreign investment‟ implies that the limit of 74% would be a combined limit of FDI and FII (foreign institutional investors). in Narsimham I which proposed to establish a central Asset Reconstruction Fund with money contributed by the Central Govt. The ARCs were supposed to not only concern with the realization of bad loans but to also do ―reconstruction‖ i. Persons aged b/w 18 years and 59 years and who are members of the identified 45 occupational groups are eligible for the scheme. Annual premium payable is Rs 200 50% of the premium shall be payable by the Union Government from a separate fund created by the govt and operated by LIC and the remaining 50% by the State Government. this idea was not responded to. This move will remove the prohibition on investment by FII in ARCs. So Narsimham II report. However. What are ARCs? Asset Reconstruction Companies (ACRs) which is also known as Asset Management Companies in foreign countries are centralized agencies that deal with the problem of bad loans of banks. Janashree Bima Yojana (JBY)     Launched in August 2000 Life insurance protection to people who are BPL or marginally above poverty line. Premium of Rs 200 per member     . Aam Aadmi. The word ‗asset reconstruction‘ was first used.e. A separate fund has been set up for providing scholarship to the children of beneficiaries. 2012 Government has exempted services of life insurancebusiness provided under Aam Aadmi Bima Yojana (AABY) and Janashree Bima Yojana (JBY)from service tax. Here. which was to be used by banks to resurrect their balance sheets to clean up their Non-Performing loans. Janashree Bima Yojana exempted from service tax December 28th. to try to revive the bad loans into g ood ones. opined to set up ARCs the likes of which are successful in countries like Malaysia. The shareholding of an FII shall not exceed 10% of the total paid-up capital. Insurance to the head of the family or earning member of the family of rural landless households b/w the age of 18 and 59 years against natural death or accidental death and partial/permanent disability. Aam Aadmi Bima Yojana    Launched in 2007 Covers death and disability insurance for the benefit of rural landless households. Also provides for educational aid to the beneficiaries‘ children studying from 9 th to 12th standard as an extended benefit. Korea and several other countries in the world.

successfully. 50% of premium comes from Social Security Fund maintained by LIC. a pilotless target aircraft. bill payment. How does SBI‟s MobiCash works? SBI is carrying out this plan in collaboration with a private service provider Oxigen which will do round-the-clock money transfer and other services. It will also address the requirement of financial inclusion as it facilitates to extend financial services to un-banked population through the omnipresent mobile phones. Astra‟s third launch also successful one January 1st. SBI‘s customers as well as non -customers. Astra will be fired from aircraft such as Sukhoi-30 MI. SBI unveils MobiCash Easy January 3rd. mini statement. rest 50% borne by the member and/or nodal agency. mobile top-ups and DTH recharge etc. Future plans:  After three more ground-to-air launches in 2013. transfer funds to other wallets issued by SBI. and the customer is not required to fulfil the KYC (know your customer) norm. the youth and those seeking to pay bills. simply by messaging. The service is currently available in Mumbai andDelhi only. Astra destroyed Lakshya. Odisha. MiG-29 and the Light Combat Aircraft. 2013 State Bank of India (SBI) has unveiled its mobile wallet namedState Bank MobiCash Easywhich provides facilities such as fund transfer. this money can be used to send remittances to any bank account. To avail the facility one can contact Oxigen outlets by sending SMS to 9870888888. SBI customers have an additional option of topping up the wallet using SBI‘s mobile banking service. which was fired from a static launcher on the ground at Chandipur. 2013 In 2012. money withdrawal is not allowed. “R-TUFS” scheme to promote investments in sector January 1st. The service is aimed at migrant labourers who send money back home from SBI branches. It can be launched from different altitudes and the distance at which it can kill an enemy aircraft depends on the altitude from which it is fired. balance inquiry. . Tejas. 2013 India achieved a third consecutive success in the launch of anti-aircraft air-to-air Astra missile. After registration one can deposit money at the outlets and get his account recharged. Investment slumps in textiles. At present. Once it is done. The sum of money one deposits with the bank will be akin to money in one‘s account. The facility is available to both. the textile and clothing industry in the country has made minimal investment in expansions and new projects.

proposing a total investment of Rs. 1. The total subsidy amount provided for 2011-2012 was Rs. 35. This move has come following increase in the number of incidents of cyber attacks as well as security threats. It was anticipated to leverage total investment of Rs. weaving and processing. the Union Ministry of Textiles had announced the Restructured Technology Upgradation Fund Scheme (R-TUFS) with subsidy cap for each value adding segment. Though 3. NCIPC will set up sectoral Computer Emergency Response Teams (CERTs) and will also install sensors on critical systems for getting real-time information regarding cyber attack of any kind for preparing a quick response. such as spinning. of India. What is R-TUFS?  It is a scheme introduced by Govt.In 2011. In 2011. Objectives of the Scheme:  Addressing the issues of fragmentation and promoting forward integration by providing 5% interest reimbursement for spinning units with matching capacity in weaving/knitting/processing/garmeting Promoting investments in sector with low investment like processing Technology upgradation in weaving by providing higher capital subsidy for establishment of new shuttle-less looms Ensuring greater participation of SSI (Small Enterprises) units by increasing the limits under this category NCIPC” to implement a 5-Year Project for Cyber Security of Critical Sectors // Critical infrastructure protection (CIP) // December 30th. 362 crore. India faced around 13000 cyber incidents. Who will implement the Project?  It will be realized by National Critical Information Infrastructure Protection Centre (NCIPC) NCIIPC functions under the guidance of National Technical Research Organization (NTRO). NCIPC is the nodal agency which coordinates the cyber security operations related to critical infrastructures in India.900 crore.892 crore (April 2011 to November 2012). to channelize investments towards hitherto low investments segments to facilitate a balanced growth across the value chain. 46. 2012    The central government has decided to establish five-year project for strengthening the overall cyber security structure of critical sectors of India.     . implementation of the projects are delayed. The subsidy claimed was only Rs.972 crore.542 applications were received. Ministry of Textiles.

S. coal. The Justice Mehra Commission will be in addition to a three-member panel headed by the former Chief Justice of India.          NCIPC of India has been proposed. 2013 Corporation Bank has launched Corp RuPay Aadhaar cardwhich has a primary aim to provide easy and smoothbanking services to the financially excluded and underprivileged sections of the society having Aadhaar number. . The committee will recommend amendments in law to provide for speedier trial and rigorous punishment in ―aggravated sexual assault‖ cases amid demands for death penalty. J. It will also suggest steps to make Delhi and the NCR safer for women. Sectors whose cyber security falls under NCIPC are: Energy (natural gas. Corporation Bank unveils RuPay Aadhar card January 16th. The card can be used at the conventional ATMs. NCIPC will ensure critical infrastructure protection and critical ICT infrastructure protection in India. micro ATMs or at the handheld machines used by business correspondents and at point-of-sale terminals at merchant establishments. to identify lapses and fix responsibility for the incident. 2012 In response to furor and protest against the incidence of the gang-rape of a 23-year-old woman in Delhi. the Union Cabinet set up a Commission of Inquiry which will be headed by the former Delhi High Court judge. Commission headed by “Justice Usha Mehra” to opine measures to make Delhi safe for women December 30th. The Centre rejected control of the Delhi police to the Delhi government saying the responsibility of law and order in the capital should remain with the Union government. Chief Minister Sheila Dikshit had demanded greater authority over city police after alleging that police officers had interfered in the recording of statement of the victim. Justice Usha Mehra. oil and power) Finance and banking Transportation (civil aviation and railways) Space Law enforcement Security Telecom Defense What is “Critical infrastructure protection (CIP)” ?  Critical infrastructure protection (CIP) is a concept that relates to the preparedness and response to serious incidents that involve the critical infrastructure of a region or nation. Verma.

12. same kinds of measures were taken by the government when it infused about Rs. keeping in mind the capital requirements in the coming years. Besides this.517 crore in about 10 Public Sector Banks (PSBs) during the current fiscal to boost their lending potential and also assist them in meeting the stricter capital adequacy norms under Basel-III. Accordingly. In previous years also. Government approves Rs. Implementation of Basel-III capital regulations increases requirement of core equity capital by banks due to higher capital ratios. Prevention of Money Laundering (Amendment) Bill.517 cr capital infusion in PSBs January 13th. 2013 President Pranab Mukherjee gave assent to the three financial sectors reforms laws namely.12.117 crore in PSBs during 2010-11 and poured in another Rs. update. It proposes to make provision for attachment and confiscation of the proceeds of crime even if there is no conviction so long as it is proved that offence of money laundering has taken place. . 2012. Banking Laws (Amendment) Bill. banking bills turn into law with President assent January 15th. 2013 Taking into consideration the suggestions by Committee on Customer Service in Banks (Damodaran Committee) relating to BankingOmbudsman Scheme 2006 and the Rajya Sabha Committee on Subordinate Legislation. the Cabinet also gave an in-principle approval for providing need-based recapitalization of banks till 2018-19 for ensuring compliance with the Basel-III capital adequacy norms.20.000 crore in 2011-12 to comply with the capital adequacy norms. the Cabinet gave an in-principle nod for need-based additional capital infusion in banks from 201314 to 2018 -19 to ensure compliance with Basel-III global banking norms aimed at minimizing financial risks.12.Corporation Bank is an associate in the direct cash/benefit transfer scheme launched by the Government which will enable direct transfer of various social security benefits and subsidies straight into the accounts of the beneficiaries. and property in question is involved in money-laundering. 2018. The Basel-III capital ratios will be fully phased in as on March 31. Reserve Bank of India (RBI) has constituted a Working Group which will be headed by Suma Verma with an aim to review. and revise the Banking Ombudsman Scheme. The money laundering bill seeks to remove existing limit of Rs 5 lakh as fine under the Act. Money laundering. 2013 The Union Cabinet cleared infusion of Rs. RBI establishes Working Group to review Banking Ombudsman Scheme January 12th. Enforcement of Security Interest and Recovery of Debts Laws (Amendment) Bill. 2006.

2007 and 2009 to make it more relevant and effective. 2013 . a US-based think-tank. What sort of complaints doest this scheme handles?        As per the Annual Report of the Banking Ombudsman Scheme. Scheduled Primary Urban Co-operative banks and the Regional Rural banks. 1995 on June 14. followed by Chennai and Bhopal. The key areas of customer complaints covered under the scheme include credit card complaints. 2011-12 released by the RBI: Total number of customer complaints received in Banking Ombudsman‘s (BO) offices of the RBI was 72. internet banking.The background of Banking Ombudsman Scheme. levying service charges without prior notice to the customers. The scheme has gone through four revisions in 2002. 1995 in terms of the powers conferred on the Bank by Section 35A of the Banking Regulation Act. Largest number (25%) of customer complaints were about failure to meet commitments/non-observance of fair practices code 21% were card related (ATM/Debit/Credit) complaints 12% complaints were relating to deposit accounts The background of Banking Ombudsman Scheme The RBI notified the Banking Ombudsman Scheme. He will have a 2-year term at the regulator. there are 15 Banking Ombudsmen with specific jurisdiction covering the 29 States and seven Union Territories in India. non-adherence to the Fair Practices Code adopted by individual banks. Currently. 1949 (10 of 1949) to provide for a system of redressal of grievances against banks. the BOS is fully financed and administered by the RBI and its serving officers in the rank of Chief General Managers and General Managers are posted as Banking Ombudsmen. Patel is PhD in economics from the Yale University and a non-resident senior fellow at the Brookings Institution. Urjit Patel is the new deputy governor of RBI January 6th.889 in 2011-12. deficiencies in providing the promised services by both bank and its sales agents (DSAs). etc. Since January 2006. Highest number of complaints was received by Kanpur and NewDelhi in 2011-12. What sort of complaints doest this scheme handles? It looks into a wide range of complaints pertaining to deficiency in banking service rendered by Scheduled Commercial banks. 2006. Currently. 2013 Urjit Patel succeeded Subir Gokarn to become new deputy governor at the Reserve Bank of India. the same as that done during the previous year. Rate of disposal of customer complaints by Banking Ombudsmen was 94 % during 2011-12. there are 27 grounds on which customers can approach the Banking Ombudsman mentioning deficiency in banking services. non-adherence to Banking Codes and Standards Board of India‘s Code of Bank‘s Commitment to Customers. Banks to ask RBI to permit interest on current accounts January 18th.

lending January 16th. . the banks have to phase in the compliance in 2015 and are expected to meet at least 60 % of the total buffer assets by then. liquid asset definition made flexible January 16th. Current accounts make 9.K.In the run up to the RBI‘s Monetary Policy Review. retail mortgage-backed securities (RMBS) and lower-rated company bonds. withbanks. Dubey has been appointed as the Chairman and Managing Director ofCanara Bank Deadline for Banks to comply with Basel-III relaxed. The definition of liquid assets has also been made flexible to include shares.85 % of total deposits with banks. the less liquid assets could be considered as buffer assets at a heavy discount to their value. Dubey assumed charge as CMD of Canara Bank January 16th. financial institutions. 2013 The Basel Committee has extended the deadline given to banks around the world to comply with Basel-III norms has been deferred for 4 more years to January 2019 against the previous deadline of January 2015. Basel-III sets global minimum standards for banks and proposes for minimum holding of cash and liquid assets by banks in order to make them financially sound against the possibility of another financial crisis to the scale of Lehman Brothers in 2008 and to avoid the situation where in the taxpayers have to bail out the cash-strapped banks. Currently. Banks are of the view that providing interest on current account will generate more cash flow into the system which otherwise stays with the establishments. However. if any. Small and Medium Enterprises (CIMSME) to prop up its priority sector lending. CIMSME communicates the interests of companies in MSME sector. What is the agreement? As per the pact. CIMSME would mobilize proposals from its members for consideration of the bank. As per new norms. Banks will also demand a slash in CRR as well as in repo rate. 2013 Allahabad Bank has inked an MoU with the Chamber of Indian Micro. concerned ministries and other organizations. Why this extension? The Banks around the world have complained of inability to meet the deadline as the guidelines could obstruct lending and damage economic growth. The new rules have put the buffer assets of world‘s top 200 banks to 125 % from the current 105%. the organization would support the bank in followup and recovery of dues and provide early warning signals. K. Once the loan is approved. there is no interest given by banks on current accounts. banks will ask the central bank to allow them to pay interest on current account deposits. R. well above what is required for full compliance. They are required to meet 100% of the "liquidity coverage ratio" by January 2019 to survive an acute 30-day crisis. 2013 R.

For what purposes the fund is being used currently? Who manages the Fund? The income from the Fund is to be used for the following broad investment objectives:   75% to finance selected social sector schemes. who has taken over the control of Canara Bank as its Chairman & Managing Director. because of the difficult economic situation caused by global slowdown. in order to enlarge their capital base to finance expansion/diversification However. the Cabinet Committee on Economic Affairs (CCEA) chaired by PM Dr.) Ltd. Manmohan Singh has permitted the National Investment Fund (NIF) to buy shares of public sector enterprises. . Goyal comes in place of Rajeev Kishore Dubey.How will it help? The agreement will help speed up the process of disposal of loan proposals under MSME and help the bank collect quality proposals and enhance credit flow to the sector. the government in November 2009 decided to utilize proceeds from disinvestment only for social sector spending. Raj Kumar Goyal is new ED of Central Bank of India January 16th. National Investment Fund (NIF) NIF was established in 2005 to channelize the proceeds generated through the sale of minority shareholding of CPSEs. which promoteeducation. on rights basis so as to ensure that 51% ownership of the government is not compromised. Now the fund will be use for subscribing to the shares being issued by the Central Public Sector Enterprise (CPSE) including Public Sector Banks (PSBs) and Public Sector Insurance Companies. health and employment 25% to meet the capital investment requirements of profitable and revivable CPSEs that yield adequate returns. Who manages the Fund? NIF fund managers are:   UTI Asset Management Company Ltd. including banks and insurance companies. This exemption is applicable till March 2013. SBI Funds Management Company (Pvt. Proceeds of NIF allowed to be used to fund bank recapitalization: CCEA January 19th. The Fund would be maintained outside the Consolidated Fund of India. 2013 Raj Kumar Goyal has been appointed as the new Executive Director of Central Bank of India. 2013 In a move made to enhance disinvestment policy.

Banks have sufficient buffers in the form of high quality assets (cash and holdings of government paper) to respond any eventuality of reversal of capital flow or liquidity pressure owing to ongoing upheaval in international markets. Board members of public sector banks must be independent and not from the RBI as nomination of RBI officers as board members of banks may be conflicting to the supervisory role of the central bank. LIC Mutual Fund Asset Management Company Ltd. bank regulator. RBI should be given greater powers to conduct carve-outs and the central bank should give more attention to crisis readiness.Gift Card‟which is an online version of physical plastic gift cards. health — and underserved areas may conflict with RBI‘s supervisory role. which is part of IMF‟s Financial Stability Assessment Programme (FSAP): Extensive role of government in the financial sector.through ownership of large financial institutions. its financial sector still faces up obstacles to its ability to support growth and stability. This card can be gifted via email or SMS to the recipient who can use it to purchase anything online across categories like apparels. The card carrying a particular value can be bought by using debit or credit card. As per report. education. and government debt manager may have led it to require banks to hold larger holdings of government debt than might be needed on prudential grounds. 2013 As per International Monetary Fund (IMF) report.      . It also saves the sender from the puzzling situation of ―what to buy for gift‖. 2013 Axis Bank has launched „Axis Bank e. What does it offer? The e-Gift card allows the customers to buy gift cards in an alternate way.  Indian financial system remained predominately stable owing to its sound regulatory and supervisory regime. All purchase transactions shall be limited to sites that support verified by Visa and MasterCard secure code for two factor authentication. strict controls over the range of permissible activities. India. there are some voids. Multiple roles of RBI such as monetary authority. small and micro credit. directed credit to priority sectors. including some limits on the de jure independence of the regulators (RBI and IRDA). Axis Bank offers e-Gift Card service January 19th. airline tickets. RBI‟s multiple roles create conflict: IMF January 19th. captive government financing. and limits on the accessibility of foreign capital — contributes to a pile-up of fiscal contingent liabilities and creates a risk of capital misallocation that may hinder economic growth. books etc. However. Use of the banking system rather than government programmes in meeting the needs of priority sectors — agriculture. despite its recent successes in developing a stable financial system.

to 5. The Bank called on the developing countries to focus on internal productivityenhancing policies to give growth a fillip. As per projections. the maximum amount of swap that RBI would contract with banks and the maximum limit each bank can do on a particular day after taking into account market conditions. 2013.4%from earlier estimate of 3%. the banks will exchange the dollars against the rupees with RBI. RBI will decide upon the number of banks that can access the facility. at the prevailing market rates for swaps of similar tenor. RBI introduces Dollar. Strengthening of resolution powers and contingency planning for insurance companies and the payment system. growth in advanced economies should reach 1. During the first 9 months of the current fiscal 25 such banks have been merged into 10. high unemployment and weak consumer and business confidence. It would touch 2% in 2014 and2.7% in 2014 and 5. The growth in these countries should slowly gather up.5 % in 2013 from 5. which last year grew at their slowest pace in a decade. banks will have the option to avail rupee refinance to the extent of the swap with RBI under a special export credit refinance facility. Objective: To increase the flow of credit to the export sector to support incremental Pre-shipment export Credit in Foreign Currency (PCFC) by banks.8% in 2015. 2013 Restructuring of RRBs by merging geographically contiguous RRBs sponsored by different banks within a state is in progress in order to consolidate RRBs segment.Rupee swap facility January 18th. RRBs have a . major economies around the world are still facing hurdles towards recovery. As per World Bank. The total limit for the banking system works out to $6. for a fixed tenor of three or six months. Banks will be able to buy US dollars up to its eligible swap limit from RBI and at the same time sell the same amount of dollars forward as per the term of the swap. Now the number of RRBs stands at 67 till the first week of Jan 2013. As per RBI. 2013 RBI has introduced a dollar-rupee swap facility. 2012 forecast. touching 5. It also cut its forecast for developing countries. 25 RRBs merged into 10 January 24th. At the end of the swap term. The facility will be available to banks from January 21 till June 28. World Bank cuts Global Growth estimates for 2013 January 19th.5 billion. despite improved conditions in financial markets.9% in a June.3 % in 2013 dragged down by spending cuts. 2013 World Bank sharply slashed the global growth outlook for 2013 to 2.3% in 2015.

Madhya Pradesh. respectively. Central Government to infuse Rs 3. The liquidity infusion will enable the bank to support national andinternational banking operations undertaken through its subsidiaries and associates. After the capital infusion in March 2012.517 crore in around 10 state-owned banks by March.000 branches spread across the rural and semi-urban centres of the country.248 crore in Punjab National Bank (PNB) through preferential allotment of shares. 2013 S S Mundra has been appointed by the Government of India as theChairman and Managing Director (CMD) of India‘s second largest lender. The capital will be infused by way of preferential allotment of equity shares to the government. These mergers will boost the capital base of RRBs and improving efficiencies as well as optimizing the use of modern technology. Rajasthan.Bank of Baroda. Orissa. 2013.004 crore in SBI January 24th. PNB to get Rs 1. Where did these mergers take place?  States where the mergers took place are Bihar. The Centre‘s shareholding in RRBs is 50%. The decision is part of recently approved capital infusion plan of Rs 12.248 cr from Central Govt January 24th. The government had recently given nod to capital infusion of Rs 12. SBI was infused with Rs 7.58 % from 59. He is the former Executive Director of Union bank of India. S S Mundra appointed as the new CMD of BoB January 24th. Uttar Pradesh andUttarakhand. 2013 The Central Government will to infuse Rs 1. Rs 3. while 35% and 15% are with the sponsor banks and state governments. In the last fiscal. Karnataka.900 crore to increase its Tier-I capital.004 crore in State Bank of India (SBI) as a part of capital infusion plan for the current fiscal. 2013.517 crore in around 10 state-owned banks by March.4%. What is the aim of consolidation?  The consolidation of RRBs has been progressing since 2005 following the recommendation of a committee chaired by RBI Deputy Governor K C Chakrabarty which decided to recapitalize 40 selected RRBs in 21 states. the government stake in SBI increased to 61. 2013  The Central Govt will infuse a capital of Rs. .network of about 16.

2013   Canara Bank is about to unveil its e-Lounge services in Bangalore andDelhi. Canara Bank to launch e-Lounge services January 28th. What would be so special with these branches? These branches will be operational 24X7 and have amenities like lounges. 2013 The Reserve Bank of India (RBI) has revised the rules for bulk deposits. it expects customers to have at least Rs 1 crore of deposits in the branch. notify such depositors of its policy of disallowing premature withdrawal in advance. As per the revised rules: The Reserve Bank of India (RBI) has revised the rules for bulk deposits. The branches will offer all the banking products and services of SBI and its subsidiaries. Interest rates paid by the bank should be as per the schedule and should not be subject to negotiation b/w the depositor and the bank.1 crore of the same maturity. the same rate will apply. 2012. the banks will still have the discretion to deny the premature withdrawal of large rupee term deposits of Rs. RBI revises norms for bulk deposits January 29th. Banks shall have the freedom to determine its own penal interest rate of premature withdrawal of term deposits.Tags: Banking • January 2013 • Persons in News SBI to set up „by-invitation-only‟ branches to serve Super-rich and NRIs January 20th. The bank should. personal business centres and cafeterias. offering differential interest rates. State Bank of India (SBI). along with its associates. 2013 India‘s largest public sector bank. As per the revised rules:     A depositor will be allowed to withdrawal a term-deposit before completion of the period of the deposit agreed upon at the time of making a deposit. Banks can charge different rates of interest only on bulk deposits of above Rs. which would be applicable with effect from April 1. at the time of accepting such deposits. Clients can either visit the branch or interact with staff over video chat for their banking needs. While the bank has not specified any minimum deposit requirement. SBI had launched first such branch — Kohinoor Banjara — in Hyderabad in 2010. The bank will assign personal banker to each client. which would be applicable with effect from April 1. For deposits below Rs. however. However. offering differential interest rates. 2012.1 crore and above compared to the previous limit of Rs. conference rooms.15 lakh and above.1 crore and above. SBI had launched first such branch — Kohinoor Banjara — in Hyderabad in 2010. plans to set up „by-invitation-only‟ branches under the ‗Kohinoor‘ brand in 20 cities to serve uber-rich customers and Non-Resident Indians (NRIs). . Depositors must be informed by the bank about the applicable penal rate along with the deposit rate.

cash deposit kiosk. The plan offers guaranteed regular income for life post-premium paying term. Banks can consider offering longer-tenor fixed rate loans. 2013 As part of government‘s plan to infuse Rs 12. However. The bank will issue equity shares on preferential basis in favour of Government of India for an amount aggregating to the tune of Rs 681 crore. It would help banks in meeting their long-term funding requirements. which would help reduce the EMIs of borrowers. the resetting of interest rate should be in line with the regulatory guidelines on base rate. 1976 February 6th. The bank would launch first e-Lounge at Koramangala Branch. 2013      . say up to 30 years.517 crore in around 10 state owned banks by March. corporate web site terminal to offer latest information of bank‘s services all under one roof. 2013 A Reserve Bank of India (RBI) committee which studied the feasibility of introducing more long-term fixed rate loan products by banks.What this service would offer? e-Lounge will cater to the needs of corporate. Banks can also workout the option of take-out financing and can also explore promoting securitization market for better asset liability management. Besides plain vanilla fixed rate loan products. online trading terminal. a discount in premium on high sum assured and income-tax benefits. check deposit kiosk. banks can offer fixed rate long-term loan products with periodic interest reset provision (say every 7-10 years). Banks should charge pre-payment penalty on fixed rate loan products on the outstanding amount only. It offers a perfect blend of income and financial protection for the customer‘s family as it pays survival benefits every year from the end of the premium paying term till maturity and life insurance benefit. Govt to infuse Rs 681 crore in UCO Bank January 26th. It would offer Services of ATM. pass book update. made following suggestions:  Banks should popularize Fixed Deposit (FD) schemes with tenors of above 5 years as they are eligible for tax exemption. 2013 Birla Sun Life Insurance has launched its first participating plan „Vision Life Income‟. internet banking terminal. 2013. Bangalore Vision Life Income‟ launched by Birla Sun Life Insurance January 26th. Banks which have not fully exploited the sector of long-term bonds (minimum maturity of five years) to the infrastructure sector (minimum residual maturity of five years) could make use of the room available to issue more long-term bonds which would aid release resources for extending long-term fixed rate loan products. Union Cabinet gives nod to amendments to Regional Rural Banks (RRBs) Act. IT and businessprofessionals. UCO Bank will be infused with Rs 681 crore. RBI panel suggests banks to encourage long-tenor FD schemes January 26th.

SEBI revises OFS mechanism February 2nd. A brief account of RRBs Regional Rural Banks (RRBs) were set up under Regional Rural Banks Act.7% February 4th. State Bank of India. As per SEBI. As per provisions of the Regional Rural Banks Act. the Securities and Exchange Board of India (SEBI). 5 crore and the issued capital is a maximum Rs. 1976 the authorized capital of each RRB is Rs. The decision came following RBI cut its key policy rate and the cash reserve ratio by 25 basis points each. the revised norms:  The cumulative bid quantity will be made available online to the market throughout the trading session at specific intervals in respect of orders with 100 % upfront margin and separately in respect of orders placed without any upfront margin. 2013 Market regulator. 1976 Objective:     amendments proposed in the Regional To enhance authorized and issued capital to strengthen their capital base. IDBI Bank was the first off the block to reduce base rate as well as its benchmark prime lending rate by 25 basis points each. After RBI announced cut.50-11. 2013   India‘s largest public sector bank. which is currently at 9. has cut its base rate (minimum lending rate) marginally from current 9. has revised the Offer For Sale (OFS) mechanism as the deadline is approaching for the promoters of listed companies to offload their stake to meet the minimum public shareholding norm of 25 % by June 2013. How these amendments will it help RRBs? These amendments are aimed at bringing financial stability in RRBs which will make then capable to play a larger role in financial inclusion and meet the credit requirements of rural areas and strengthen the Boards of RRBs.70%. . 1 crore. SBI slashes base rate to 9. The term of the non official directors appointed by the Central Government is proposed to be fixed not exceeding 2 years. respectively. the concerned State government and sponsor banks. The interest rate on car loans has been cut by 25 basis points to the 10. The ownership of RRBs is jointly with the Government of India.70%. with the issued capital shared in the proportion of 50%. The effect of central bank‘s move is also visible as HDFC bank has reduced interests on auto loan by up to 50 basis points without altering its base rate.The Union Cabinet approved the Rural Banks (RRBs) Act. 1976 (the RRB Act) to build an alternative channel to the ‗cooperative credit structure and to ensure sufficient institutional credit for the rural and agriculture sector.50 % range. 15 % and 35%.75% to 9.

ING is second company to exit Indian insurance market after New York Life sold its 26% stake in a life insurance joint venture with Max India to Japan‘s MS&AD for about $530 million. The cut in repo rate is expected to bring down the borrowing rates individuals and corporate. non-institutional investors have to pay 100% upfront margin in cash. RBI cuts repo rate and CRR. 2013 Dutch banking and insurance group ING has decided to sell its 26% stake in an Indian insurance venture to local partner Exide Industries.5% January 31st. Orders with 100% margin paid upfront by institutional investors and non-institutional investors can be modified or cancelled at any time during trading hours. It would also buy 24% from two other private Indian investors – Enam Group and Hemendra Kothari Group – for a total of about 5. However. Institutional investors who placed orders / bids with 100% margin upfront.75% and Cash Reserve Ratio (CRR) by similar margin to 4%. has cut down the growth projections for the current financial year to 5. however. 2013 The Reserve Bank of India (RBI) eased its tight monetary policy by slashing its key interest rates by 0. Within the period of a year. The slash in CRR. uncertainty and a acute slowdown in economic growth. Exide Industries to acquire ING stake in Indian life insurance joint venture January 30th. Why are these companies making exit from India? The Indian insurance sector which was quite promising till 2000 is now battered by losses.8%.      The indicative price shall be disclosed to the market throughout the trading session.5% from its earlier estimate of 5.25% and released Rs 18. would enhance the availability of funds. Orders without paying upfront margin by institutional investors can‘t be modified or cancelled except make upward revision in the price or quantity. regulatory change. Exide would acquire ING‘s 26 % percent in ING Vysya. ING is in the process of selling all its Asian insurance and investment management operations.25% to 7. Institutional investors have a choice to pay either upfront 100 % margin in cash or without margin. . This is also calculated based on all valid bid / orders. custodian confirmation would be within trading hours and settlement shall occur on T+1 (trading plus one day) and without upfront margin it will be on T+1 and settlement will be on T+2 as it is now followed in secondary market transactions. slashes growth forecast to 5. which is the portion of deposits that banks have to keep with RBI. The RBI.5 billion rupees ($102 million).000 crore additional liquidity into the system to stimulate growth through reduced cost of borrowing. SEBI has eliminated the extended half-an-hour time after trading hours given to the custodians. RBI cut the Repo Rate by 0.

A proposal to increase the foreign investment in insurance firms to 49% from current 26% which is important to attract funds to the loss making sector.000 for SB Super and Rs 1 lakh for SB Signature. Naseer Ahmed is the new Director of Syndicate Bank February 8th. The Government of India has nominated Ahmed as part-time non-official director on the Board of Directors of Syndicate Bank for a period of 3 years. Corporation Bank launches new variants of savings bank accounts February 8th. The life insurance industry which holds around three-quarters of the Indian insurance sector has lost a combined $4 billion in the past decade and was jolted by a 2010 crack down on the sale of lucrative equity-linked products. Minimize number of free cheque books issued to individuals: RBI February 7th. post-dated cheques (PDCs) should be completely stopped and repayments should be only through electronic payments. SMS banking. has been pending for a long time due to political impasse. 2013 The Reserve bank of India (RBI) has recommended in its discussion paper that the number of free cheque books given per year to individuals may be kept to a minimum and instead they should be encouraged to use electronic payments. Current PDCs should be converted to electronic payment mandates within a prescribed timeline. Both accounts offer bundled demat and trading account including a waiver of annual maintenance charges for the first year. which should be disclosed upfront. As per central bank‟s recommendations:   Banks may levy moderate or steep charges on cheques issued beyond this minimum number. They also bring concessions and offers like free NEFT. 2013 C R Naseer Ahmed has been appointed as the Director of Syndicate Bank.   . then the issuing banks may levy high convenience charge. Credit card dues should be paid electronically. 2013 Corporation Bank has rolled out two new types of savings accounts namely SB Super and SB Signature. 2013 Punjab National Bank which is India‘s second-largest bank has acquired a 30% stake in the Indian subsidiary of the biggest US life insurer MetLife at an unrevealed amount. In case of fresh loans. A customer should maintain a minimum Quarterly Average Balance (QAB) of Rs 15. with suitable conditions for late payment and non-payments. PNB buys 30% stake in MetLife India February 8th. and 25 % concession in bank charges for gold coins. Customers having any of the two accounts will be offered preferential loan processing. In case cardholders make payments of dues using cheques.

whichever is earlier. With the help of this service the unbanked customers of these two companies will be able to transfer money securely and instantly through their mobile phones without getting connected to data services. The service will be first launched in Tamil Nadu to specifically cater to the needs of migrant working population. Dell ready to become private in $24 billion deal February 11th.65 per share to leave the company on its own. Dell did rapid growth through the 1990s which brought its founderMichael Dell into one of the world‘s richest people. will remain the CEO after the sale closes. 2013 PC manufacturer Dell is ready to go private in a $24. ICICI Bank has partnered with Aircel to launch a mobile banking service. Once this is done. Cheque collection boxes at public places should be discouraged and should be provided only at bank branches. Such charges may be higher than the charges levied on electronic payments of similar value. The company will be sold to a group of investors that includes investment firm Silver Lake. money transfer to third parties. ICICI Bank ties with Aircel for Mobile Money February 7th. The service will work towards financial inclusion of those who face problems in transferring money due to absence of branches or ATMs closer to them by offering a range of financial services such as deposits and cash withdrawals.4-billion buyout. and various utility bill payments. Michael Dell. .   Banks may set some amount/value limit for cheques issued by individuals. The company which is facing slump will pay its stockholders $13.Source. who owns nearly 16% stake in the company. deposits the cheque into their bank account for collection. self-reload of prepaid mobile credit. ‗Mobile Money‘. Government nominates C R Naseer Ahmed on the Board of Directors of Syndicate Bank February 11th. Dell‟s sale is the highest-priced leveraged buyout of a technology company. 2013 or until further orders. 2013 India‘s largest private sector bank. DELL will stop trading on the NASDAQ. What is a “Leveraged buyout (LBO)”?  LBO = Acquisition of a company (or a part of a company or it can also be single asset like a real estate) using a substantial amount of borrowed money (bonds or loans / debt) to meet the cost of acquisition. 2013 The Central Government has nominated Mr. C R Naseer Ahmed as part-time non-official director on the Board of Directors of the Bank for a period of three years from February 01. Banks may levy a processing charge in case of individuals who have invested in shares/debentures/bonds and have not opted for receiving dividend/interest directly into their bank accounts.

Taking the company private will leave it without publicly traded shares to attract and reward talented workers or to help buy other companies.  The financial buyer (e. Mr. LBOs can have many different forms such as Management Buy-out (MBO). but as they have claims on the assets of the company. but it can also be employed with public companies. Ram is now 65 years old and is set to retire in coming months and exit the business. but the difference is that in an MBO the Management Team of the target company acquires the company instead of a financial sponsor as in case of a LBO. Now. Can LBO be employed in public companies also?  YES. Financial backers of Dell are of the view that it will be easier to engineer a turnaround without having to pander to the stock market‘s fixation on whether the company‘s earnings are growing from one quarter to the next. Though. Example: Mr. mostly LBOs occur in private companies. private equity fund) puts a small amount of equity (relative to the total purchase price) and utilizes leverage (debt or other non-equity sources of financing) to fund the rest of the amount that is paid to the seller. tertiary buyout. the Higher Management Team at the company believes strongly that the company has good future ahead and so the Management people come together and they buy out the Mr. they are likely to realize a partial. The obligations mean Dell will have less money to invest in innovation and expansion of its business. Ram‘s (owner‘s) equ ity in the company and assume control in the XYZ company. Britain confers new powers to regulators to break up banks February 11th. if not full. Equity holders – Risk arises due to significant financial leverage. Ram is the sole owner of XYZ company. even in bankruptcy. financial buyers seek to generate high returns on the equity investments and use financial leverage (debt) to increase these potential returns. The -ves of Leveraged buyout:   LBOs need companies to reserve some of their incoming cash to reduce the debt taken on as part of the process of going private. Management Buy-in (MBI). What is “Management Buyout (MBO)”? MBO is quite similar to a LBO. Interest amount that has to be paid for the debt taken by the company are are "fixed costs" and thus they can in future force the company into default if they not paid. return on their investments. secondary buyout. etc. Debt holders – The debt holders assume the risk of default compared with higher leverage as well. The +ves of Leveraged buyout::    In LBO transactions. 2013 .g.

Things you should know about BNP Paribas and Geojit BNP Paribas .The UK government has given new powers to regulators which can now break up banks if they fail to protect their retail operations from their riskier investment arms. 2013 Sharad Sharma has been appointed as the Executive Director of GeojitBNP Paribas to oversee the company‘s operations. .SBI Life Insurance is a Joint-Venture b/w SBI (74%) and BNP (26%) Paribas Assurance. The new measure gives regulators the power to force a complete separation of a lender‘s retail business from its investment banking.Logo: Geojit BNP Paribas: . 2013 Kotak Mahindra Bank has acquired the business loans portfolio fromBarclays Bank plc India branch and Barclays Investment and Loan (India Ltd) for an undisclosed sum. . BNP Paribas took a stake majority stake in Geojit Securities Ltd. In 1994. . leading to taxpayer bailouts of two big UK banks.‘ Kotak Mahindra Bank acquires Barclays India‟s business loan portfolio February 9th. and consequently. .In 2007. Ranajit Kanjilal.Bloomberg and Forbes in 2012 ranked BNP Paribas as the 3rd largest bank in world on basis of the total assets held by the bank.BNP Paribas is a French global banking group. 2013 The RBI has directed State and Central co-operative banks not to give loans for purchase of gold in any form to curb the considerable increase in its import in recent years. RBI directs Co-op banks to not grant loans for gold purchase February 15th. The government is cautious keeping in mind the happenings of past when risky investments undermined banks‘ stability in 2008. . J. Sharad Sharma becomes ED of Geojit BNP Paribas February 9th. . George and Mr. will be responsible for all business lines. headquartered in Paris.BNP Paribas was formed in 2000 via the merger of Banque Nationale de Paris (BNP) and Paribas in 2000. Satish Menon.‗Geojit‘ was a company started in 1987 by Mr. it became a Public Limited Company named ‗Geojit Securities Ltd‘. also the Executive Director. C. evolved ‗Geojit BNP Paribas Financial Services Ltd.

Financial Institutions Syndicated Deal of the Year 2012 award goes to YES Bank February 11th.000 crore. Free NEFT. Banks to start loans recovery from Kingfisher February 15th. which is a leading trade association for syndicated loan market in this region.000 for SB Super and Rs 1 lakh for SB Signature. following a strike. The consortium of 17 banks led by State Bank of India (SBI) has anexposure of Rs. Banks had to consider this extreme measure as the airline‘s management could not devise with any reliable revival plan. Following these changes NABARD would be able to undertake short term lending operations and introduce new credit products. 2013 Troubled air carrier Kingfisher Airlines is at moribund point as its key lenders have decided to recall the loans given to the company. Government considers enhancing NABARD capital base to Rs 20. Condition: A customer should maintain a minimum quarterly average balance (QAB) of Rs 15. Facilities with these accounts:     Both offer preferential loan processing by affixing ‗priority‘ seal by the branch while forwarding loan applications. They offer loans for various purposes against the security of gold/gold ornaments as part of their lending policy. but not permitted to grant any advance for purchase of gold in any form. The award was given for $155 million loan syndicated by YES bank which was distributed across 9 different countries from 14 banks. SMS banking. The award was given away by Asia Pacific Loan Market Association (APLMA). 2012. . and 25 per cent concession in bank charges for gold coins. The increase in authorised capital will augment the operations and broaden the activities of NABARD. 2013 ‗SB Super‘ and ‗SB Signature‘ are the new variants of savings account launched by Corporation Bank. Its flying licence has been cancelled since January 1.000 crore to the Kingfisher. 2013 The government is cogitating to expand the capital base of India‘s apex farm development bank National Bank for Agriculture and Rural Development (NABARD) to Rs 20.Currently. 2013.000 crore February 14th. It stopped flying since October 1.000 crore from existing Rs 5. Corporation Bank offers new variants of savings bank accounts: “SB Super” and “SB Signature” February 11th. Bundled demat and trading account including a waiver of annual maintenance charges for the first year. 2013 YES Bank has been awarded the Financial Institutions Syndicated Deal of the Year 2012 in its Asia Pacific Region. these banks are allowed to grant loans against pledge of gold ornaments. 7.

Denmark Chairman: Kurt K. the Negotiable Instruments Act itself contemplates the presumption of a cheque having been issued for consideration or discharge of debt being amenable to rebuttal. Services offered:     Trading via an online platform SaxoTrader in Forex. However. 1992 . 2013 The Apex Court has held that dishonoring of a cheque given as securityis not liable to be visited with a penalty under Section 138. Kim Fournais and Marc Hauschildt. About Saxo Bank: An Online Danish investment Founded: Headquarters: Copenhagen. Stocks. It is generally thought that dishonoring of a cheque in any circumstances can attract penal action. Funds and Bonds. Saxo Bank is well known internationally for its success in Internet brokerage and it has bagged number of awards for the same. The bank provides online trading and investment across global financial markets. Private Wealth Management services. 2013 Saxo Bank enters Indian market  Saxo Bank has announced its entry into the Indian market to provide trading platform for foreign equities. Futures. CFDs. Fact Box: Saxo Bank February 20th. bank. Chairman Vice Chairman: Dennis Malamatinas CEO: Kim Fournais Founder members: Lars Seier Christensen.Dishonoring of cheque given as security is not punishable: Supreme Court February 21st. Larsen.   1992: Saxo was originally founded as a brokerage firm under the name ‗Midas Fondsmæglerselskab‘. 2001: The company obtained a banking license and its name was later changed to ―Saxo‖.

840 crore in the first nine months of the current financial year ended December 31. to the priority sector as defined by RBI. Are there minimum limits? The limits are prescribed according to the ownership pattern of banks.71. from Rs 61.6% in 2007-08 to 15. Priority sector lending to minorities is one of the schemes covered under prime minister‘s new 15 point programme for the welfare of minori ties. The Reserve Bank has a detailed note of what constitutes a priority sector.71 crore to minorities. The net NPAs in State Bank of India. or NBC. both the public and private sectors have to lend 40 % of their net bank credit. Priority sector lending by public sector banks to minorities has increased from 10. for the balance.960. In case of foreign banks operating in India. What if a bank does not achieve priority sector lending targets? Domestic banks having a shortfall in lending to priority sector/ agriculture are allocated amounts for contribution to the Rural Infrastructure Development Fund ( RIDF ) established in NABARD. there are a vast number of sectors that banks can lend as priority sector. 2012. education loans and loans to MFIs.01% in 2012-13 with a total lending of Rs 1. among others. 2012. which fail to achieve . Basically this is meant for all round development of the economy apart from only focusing on the financial sector. Punjab National Bank and Bank of Baroda rose by 60%. 70% and 118% respectively. However.398 crore as on December 31. 2013 Priority sector lending (PSL) by public sector banks to minorities to minorities surpassed 15% mark. However. Are there specific targets within the priority sector? Domestic banks have to lend 18 % of NBC to agriculture and 10 % of the NBC has to be to the weaker section. What is Priority Sector Lending? Priority Sector Lending is an important role given by the Reserve Bank of India (RBI) to the banks for providing a specified portion of the bank lending to few specific sectors like agriculture or small scale industries. 2013 The bad loans or Non Performing Assets of listed banks swelled by 50% at Rs 30. Fact Box: Priority sector lending (PSL) February 16th. foreign banks have to lend 32% of their NBC to the priority sector. which also includes housing loans. While for local banks.558 crore as on March 31. foreign banks have to lend 10 % of NBC to the smallscale industries and 12 % of their NBC as export credit.50% increase in Bad loans of listed Banks February 19th. 2012. The net Non-Performing Assets (NPAs) of 40 listed banks surged to Rs 92.

Higher the inflation. The move by the government has been lauded by the RBI saying that the step is in line with government‘s commitment to lowering inflation. IIBs would help in:   Boosting domestic savings and reversing the declining savings-to-GDP ratio. Budget Box: Proposal to introduce IIBs „Inflation-Indexed Bonds‟ to encourage savings March 1st. IRDA had amended investment norms to forbid an insurer from holding more than a 10% stake in a company. It has referred the matter to insurance advisory committee to add more clarity onbancassurance regulation. What are IIBs? Inflation-Indexed Bonds or IIBs are are bonds where the principal is indexed to inflation. Providing households and other investors a competitive option against gold and real estate. Other steps:  IRDA also approved the health insurance regulations to enable a more consumerfriendly system. In the wake of rising inflation last year. an amount equivalent to the shortfall is required to be deposited with SIDBI for one year. 2013    The Budget 2013-14 has proposed to introduce Inflation-Indexed Bonds or IIBs with the aim to control rising Current Account Deficit. IRDA also gave nod to standard proposal form to record full details of a policyholder as per the KYC norms for sale of life insurance products. How would IIBs help? As per RBI. Four years back. These bonds will be linked to the inflation index of the country (Wholesale Price Index or WPI) and serve as a better investment option as compared to physical assets like real estate and gold. fiscal deficit and inflation. higher the returns. The move would not have any adverse effect on the financialhealth of the insurer as the insurance companies control sizeable funds.   The move follows the Finance Ministry pitching for raising the equity investment limit for insurance giant LIC to up to 30%. 2013 The Insurance Regulatory and Development Authority (IRDA) has raised the equity investment limit for the Insurance companies to 15% up from existing 10%. With this permit Insurance companies will be allowed to increase their investments in equity in a given company from the present level of 10% to a higher level of 12% and 15% depending upon the size of the controlled fund of any given insurer. there was considerable flow of investments from financial savings to safe-haven assets like gold that resulted into . They are thus designed to cut out the inflation risk of an investment. Equity investment limit for Insurance companies raised to 15 % February 15th.the priority sector lending target or sub-targets.

Rajat Gupta (64) is India-born former Goldman Sachs director who was sentenced to two year last year for insider trading. The case: In 2007 when Gupta was Director of Goldman Sachs. the women‘s bank would be set up as a PSB and would not require separate guidelines. and non-profits including The Gates Foundation.000 crore has been committed in the current Budget for the establishment of India‘s first public sector Women‘s Bank by the end of 2013. his trial. After his rise in McKinsey. Gupta also chaired as corporate chairman. is an Indian American Businessman. he was known as the ―First India-born CEO of a global corporation”. Currently. the management consulting firm from 1994 to 2003 and a business leader in India and the United States. Rajat Gupta entered into a deal with Goldman Sachs that if Rajat Gupta is found guilty for insider trading. and policies are formulated by their own elected board of women workers. Procter and Gamble and American Airlines. The bank is owned by self-employed women as shareholders. which are   . the banks by laws are required to pay the legal fees of their top Officers and Directors.2 million forlegal expenses incurred by his former employerGoldman Sachs during his trial. The Global Fund and the International Chamber of Commerce. he will reimburse entire amount that the Goldman Sachs pays for legal fees incurred. This led to current account deficit or CAD widening to 4. In US. Fact Box: Rajat Gupta February 28th. Before. Budget Box: India to have first public sector Women‟s Bank March 1st. an initial capital of Rs 1. Giving investors choice to use IIBs as good hedging instruments against inflation.9% of GDP at the end of September 2012. He was global head of McKinsey & Company. there are all-women banks in the co-operative sector. 2013 Bank for the women. Who is Rajat Gupta and what is the case?  Rajat Kumar Gupta. The proposed bank would lend mostly to women and women-run businesses. the SelfEmployed Women‘s Association (SEWA) set up a women -only bank in 1974. higher imports of the metal. he provided confidential information about the company‘s investment plan and earning details. by the women and to the women… To create a level playing field for women in banking sector. support self-help groups and women‘s livelihood and predominantly employ women. For example. Mr. board director or strategic advisor to a variety of large and notable organizations including Goldman Sachs. As per RBI. 2013 Rajat Gupta has been ordered to pay $6.

What is IFRS ? International Financial Reporting Standards (IFRS):   A set of international accounting standards stating how particular types of transactions and other events should be reported in financial statements. The power generated from the project would be distributed among Tamil Nadu. NTPL signs pact with banks for 1. IFRS are issued by the International Accounting Standards Board (IASB).54 crore. . 2013 Investors prefer accounting levels close to IFRS: Survey Majority of investors want the government to keep national accounting standards as close to the international norms (called IFRS) as possible. says a survey conducted by the global accounting firm Ernst & Young. Indian Bank and Central Bank of India has agreed to lend Rs.000-MW project February 22nd. The project would be taken up at an estimated cost of Rs. To avail the facility. 4. The first unit of 500 MW is expected to start operating in December 2013 and the second unit with the similar capacity would begin operation in March 2014. the AmEx card members need to register just once. to RajRajaratnam.public information about Procter & Gamble to Rajaratnam where he leaked info about company‘s sale of its assets worth $ 3 billion and about its quarterly earnings which were not made public. It was also alleged that Gupta passed on non.Galleon and he also got some benefits through that trading which is considered as Insider Tradinga corporate crime. 2013 A consortium of banks which includes Bank of India. Fact box: IFRS March 19th. It was alleged that Gupta also had some vested interest in Rajaratnam company.909. AmEx unveils „ezeClick‟ service February 24th. 2013 Credit card selling company American Express (also AmEx) has launched a service ‗ezeClick‘ which will enable its customers to carry out online transactions without entering card details. create their ezeClick ID and use it for all future online purchases across all participating merchants. 937 crore for the 1.considered Non-Public information.Rajaratnamtraded on the information and made profits.000-MW NTPL power project. He leaked the information of $ 5 billion investment which was to be made by Berkshire Hathaway into Goldman Sachs.The project is being set up at Tuticorin in Tamil Nadu. a joint venture of the Neyveli Lignite Corporationand the Tamil Nadu Power Generation and Distribution Corporation. Kerala. Karnataka and Puducherry.

understandable. Indian companies had been till now using the U. As per RBI banks were to become IFRS-compliant for periods beginning on or after April 1. but having a net worth between Rs 500 Crores and Rs 1000 Crores <This excludes insurance companies. international investors face difficulties in understanding a company‟s financial statements as companies in different countries follow different kinds of financial reporting standards like the US GAAP which is different from Canadian GAAP. 2011:     NSE – NIFTY 50 companies BSE – Sensex 30 companies Companies whose shares or other securities listed outside India Companies listed or NOT having a net worth in excess of Rs 1. 2011. IFRS are sometimes confused with International Accounting Standards (IAS). which are the older standards that IFRS replaced. when huge number businesses are going global the international shareholding is also increasing. *If the financial year of a company commences n a date other than April 1. The rules to be followed by accountants to maintain books of accounts which is comparable. However. Companies are to comply with the new set of rules in a phased manner.S.  IFRS was started with an aim to synchronize accountingacross the European Union but the value of harmonization quickly made the concept attractive around the globe.000 Crore <This excludes insurance companies. Hence. then the opening balance sheet needs to be prepared from the beginning of the new financial year of the company. banks and non-banking companies (NBFCs)> 2012:  All Insurance Companies 2013:  Companies listed or Not. the need was felt to evolve such standards in the form of IFRS which can even out these disparities across international boundaries. How is IFRS being implemented in India?    India is also gradually trying to comply with IFRS. What is the need of IFRS? Now. (IAS were issued from 1973 to 2000). As per the plan IFRS proposed Roadmap for INDIA: Opening balance sheet as at April 1* using IFRS-converged accounting standards. GAAP (Generally Accepted Principles of Accounting) for reporting financial statements. reliable and relevant as per the users internal or external. banks and non-banking companies (NBFCs)> .

    All Scheduled Commercial Banks Urban Co-operative banks having a networth in excess of Rs 300 crores NBFCs – Nifty 50 or Sensex 30 NBFCs listed or NOT.As per these guidelines. 2013 The Reserve Bank of India (RBI) has said in its new banking license guidelines that the important criteria for processing the application would be the business model of the applicants and it should provide for financial inclusion. So far only the UK-based banking major Standard Chartered PLC was listed as an IDR. What are IDRs?  IDRs are generally instruments denominated in rupees and allow overseas companies to raise funds from the Indian market.As per the new norms. The Securities and Exchange Board of India (SEBI) has issued detailed guidelines which will allow shareholders to convert their depository receipts into equity shares of the issuer company and vice-versa. SEBI enables two-way fungibility of IDRs March 6th. The issuer could provide exchangeability to IDR holders by converting IDRs into underlying shares. new banks are required to establish at least 25% of their branches in places with less than 10. 2013 Holders of Indian Depository Receipts (IDRs) will now have an option to convert it into shares of the issuing company.000 Crores 2014:    Listed companies having a networth less than Rs 500 Crores <This excludes insurance companies. private corporates and public sector entities must have 10 years experience to be eligible to apply for new licence. or converting IDRs into underlying shares and selling the underlying shares in the foreign market where the shares of the issuer are listed and providing the sale proceeds to the IDR holders. How this step would help India‟s capital market?   This move of allowing for two-way fungibility of IDRs will encourage greater foreign participation in the Indian capital market. and have to provide the option of redemption/conversion within three months from the date of completing a year of listing. banks and non-banking companies (NBFCs)> Urban co-operative banks having a networth between Rs 200 to Rs 300 crores NBFCs (all other Listed) NBFCs (Other Unlisted) haveing net worth between Rs 500 to Rs 1000 Crores. Financial inclusion plan main criteria for getting new bank licences: RBI March 8th. 000 cr in PSU banks next fiscal .000 population. The initial paid-up capital for new banks has been set at Rs 500 crore. Existing IDR issuers can follow the new framework. Budget Box: Government to infuse Rs 14. but having a networth more than 1.

Group insurance products will now be offered to groups such as self-help groups. The bancassurance guidelines are still under consideration of the Insurance Regulatory and Development Authority (IRDA). 2018.000 will have one Life Insurance Corporation office and one public sector general insurance company‘s office by 2014. More highlights on Insurance sector:      Insurance companies will be allowed to open branches in non-metropolitan cities without approval from the insurance regulator. The RBI has extended the date for implementing Basel III regulations by 3 months to April 1. There is a proposal to relax the eligibility conditions for life insurance policies issued on or after April 1.000 crore in 2011-12. 2013.March 3rd.The Basel III capital ratios will be fully phased in as on March 31. 2013 As per Budget 2013-14.000 crore in public sector banks in next fiscal (2013-14). Implementation of Basel III capital regulations envisages enhancing the requirement of core equity capital by banks due to higher capital ratios. It will mean some reduction in costs and may help deepen debt markets. 2013 for persons suffering from disability or certain ailments by raising the permissible premium rate from 10% to 15% of the sum assured. one non-life and a standalone health insurer. IRDA passes credit rating norm for choosing foreign reinsurers April 5th. Insurance companies will be directly allowed to trade in debt market. To expedite the settlement of 10 lakh motor third party claims before Tribunals/Courts. What is current situation? Currently. banks will also act as brokers for selling insurance products of multiple companies. banks can sell products of one life. among others.117 crore in public sector banks during 2010-11 and Rs 12. Objective: To ensure that PSU Banks meet the Basel III regulations regarding capital adequacy. The Government had poured in about Rs 20. 2013   . All towns with population above 10. The decision to permit insurance companies to become trading members of debt stock exchanges will curtail the cost for insurers. Budget Box: Banks can sell insurance products of multiple insurance firms March 3rd. insurance companies will organise adalats to settle the claims. 2013 In the Budget speech it has been announced that the government will infuse Rs 14. domestic workers‘ associations. Reserve Bank of India (RBI) had recently shown concerns about banks becoming brokers.

rather now. This was because. 2013 In order to address the difficulties faced by SHGs in complying with Know Your Customer (KYC) norms while opening savings bank accounts and credit linking of their accounts. KYC norms for self-help groups relaxed : RBI April 1st. multiple insurance companies share the risk by purchasing insurance policies from other insurers in order to limit the total loss the original insurer would face in the case of a disaster.68%. 2011.080 crore as on March. Gross NPAs of PSU banks have grown from Rs. verification can be completed only for the office bearers of the SHG. Thus. 2012.Insurance Regulatory and Development Authority (IRDA). IRDA was finding it difficult to track the audit trail of many transactions with regard to reinsurance placements and coinsurance. Finance Minister P. to Rs. Chidambaram asked banks to take bold steps against affluent promoters to recover loans from sick companies owned by them. or an equivalent rating by any other internationalagency for the past five years. as yet there have been no restrictions in place for the foreign firms. There was a demand from the general insurers that a level playing field be created for foreign insurance companies and Indian reinsurers. RBI has held that thebanks can open savings account for the SHG even if ‗know your customer‘ verification is completed for only the office bearers of the SHG. . Foreign reinsurers who have a credit rating of at least BBB from Standard & Poor‘s Corp. being unable to repay bank loans.71. 2013 Sending out warning to willful defaulters. it will not be mandatory for the banks to complete the KYC of all members of the SHG before opening a bank account.   The warning comes in the backdrop of several entities. there would be no need for a separate KYC verification while giving credit to the SHGs. it has been decided to simplify certain norms for SHGs. as the banks would have already completed the KYC norms for the SHG while opening SHG‘s bank account. of which corporate accounts constitute 53. What are the Objectives of this move by IRDA ?    Increase retention (the portion of risk which an insurer assumes for its own account).1. includingVijay Mallya‘s Kingfisher Airlines. As per the IRDA (General Insurance – Reinsurance) Regulations 2013. Take firm steps to recover loans of sick firms from affluent promoters: FM to Banks March 28th. Thus.55 lakh crore as on December. can reinsure Indian insurers. Also. In the reinsurance framework.

5% .7 lakh crore were now postponed and banks had distributed about Rs.75% to 7. The marginal standing facility (MSF) rate and the Bank Rate adjusted to 8.100 crore at the end of December. Mutual funds would have to include a disclaimer that ―investors should consult their financial advisers if they are not clear about the suitability of the product‖. product labelling for mutual funds March 20th.5% with immediate effect. As per the norms:   The front page of initial offering application forms will carry product labels with details about the schemes. 2013 The Reserve Bank of India (RBI) has cut down repo rate by 25 basis points from 7. for all existing and forthcoming schemes.the Securities and Exchange Board of India (SEBI) has issued guidelines on ‗product labelling‘ with colour coding for mutual funds. Color and Risk    Blue colour : Low risk Yellow color : Medium risk Brown color: High risk Labels would include details about the nature of schemes ―such as to create wealth or provide regular income in an indicative time horizon(short/ medium/ long term)”.54. Securities and Exchange Board of India (SEBI). no change in CRR March 20th.194 crore. As many as 215 projects with an investment of Rs. The guidelines would be effective from July 1. .000-crore in loans towards them. As a result. market regulator. As per the central bank. The labels would have to be placed in common applications forms and advertisements. RBI slashes repo rate by 25 bps. high Current Account Deficit (CAD) and inflationary pressure limit possibility of further relaxing of rates. Mutual funds should give a brief about the investment objective in a single sentence followed by kind of product in which investor is investing(equity or debt). The amount involved in such cases is to the tune of Rs. 2013. 2013 With the aim to inform investors with the amount of risk involved in various mutual funds scheme.  Of this. The Cash Reserve Ratio (CRR) has been left unchanged at 4%. 2012. about 172 corporate accounts are NPAs of more than Rs.    The reverse repo rate stands adjusted to 6.5%.37. SEBI issues framework for colour coding.

7% as against finance ministry‘s projection of 6. as NABARD inaugurated Trespone Farmer‘s Club at Trespone TSG Block in the district. What is Farmers‟ Club (FCs) ?   Farmers‘ Clubs (FCs) are grassroot level informal forums of farmers. Industrial & Service Sector: Growth outlook expected to be subdued primarily due to:    Decline in new investment Existing projects stalled by bottlenecks and implementation gaps Sluggish growth in services and exports driven by bleak global sentiments.7% for 2013-2014 – RBI May 4th. What is the need of Farmers‟ Clubs? Around 60% of country‘s population depends on agriculture which contributes18% to India‘s GDP. awareness and capacity building. other agencies like NGO. Assumptions for calculating growth rate Agricultural Sector: Normal monsoon and agricultural growth are expected to return to trend levels in second half of 2013-14. With the enhancement of the programme. Indian economy grew by 5% in 2012-2013 on account of poor performance of manufacturing. subject to appropriate conditions in the later part of year. KVKs. SAUs etc. 2013 Kargil got its first Farmers’Club. VAs. are also now included as agencies included in the formation and promotions of FCs.7%. The “VVV Programme” was renamed as “Farmers‟ Club Programme‖ in 2005 by revisiting its earlier mission.agriculture and services sector. Background:    The Farmers‘ Clubs programme which was earlier known as ―Vikas Volunteer Vahini (VVV) Programme‖ was launched by NABARD in 1982.Estimated GDP Growth at 5. technology transfer. RBI‘s current assessment is that economic activity will remain subdued and will only show a modest pick-up in second half of 2013-14. Such Clubs are organized by rural branches of banks with the support and financial assistance of NABARD for the mutual benefit of the banks concerned and the village farming community/rural people.6. However the growth of the sector has not been satisfactory with less than 2% growth in the last 50 years. 2013 The RBI‘s has projected a GDP growth for 2013-14 at 5. The Tenth Five Year Plan and National Agriculture Policy documents envisage a growth level of 4% in Agriculture. To meet the targeted  . NABARD opens first Farmers‟ Club in Kargil April 30th.1%. The programme was directed towards development in rural areas through credit.

Organise minimum one meeting per month and depending upon the need. the Farmers‘ Club has also been instrumental in certain social welfare measures like free eye check-up camp. environment and natural resource management etc. Generation of new business avenues. Besides these benefits to the banks. Non-members can also be invited to attend the meetings. Interface with subject matter specialists in the various fields of agriculture and allied activities etc. Undertake socio-economic developmental activities like community works.. What are the functions of FCs? The broad functions of the Farmers‟ Clubs are:    Coordinate with banks to ensure credit flow among its members and forge better bank borrower relationship. for the benefit of members.growth it is imperative improve productivity and reduce costs by improving efficiency. Who can form FCs?  All Institutional Agencies (Commercial Banks. Reduction in the transaction costs of financial institutions/ Banks. etc. Socio economic development of the village. Increase in the credit flow and diversification of lending. PRIs. Organise/facilitate joint activities like value addition. health. As per a study. there would be 2-3 meetings per month. Development Departments and other related agencies for technical know how upgradation. The emerging needs in agriculture sector now are adoption of location specific skill and knowledge based technologies. promote greater value addition to agriculture produce. even experienced farmers who are non members from the village/ neighbouring villages could be invited. Market rural produce and products How a bank is benefitted by opening FCs? FCs concept is a win-win situation for both the banker and the borrower. extension personnel of Agriculture Universities.. Cooperative Banks and Regional Rural Banks) and all grassroot level organisations (NGOs. improving input use efficiency. Post Offices etc. forge new partnerships between public institutions. Liaison with Corporate input suppliers to purchase bulk inputs on behalf of members. education. technology users and the corporate sector. Keeping that in mind NABARD devised FCs strategyto provide package of initiatives for transfer of technology. State Agricultural Universities. KVKs. promoting investments in agriculture both in private and in public sectors and creating a favourable and conducive economic environment. harness IT more effectively to realize financial sustainability and compete in the international market. Animal Health Care     . processing.) are eligible to form Farmers‘ Clubs. They can also sponsor / organise SHGs. collective purchase of inputs and farm produce marketing. ATMA. Increase in the recoveries and decline in the non-performing assets. For guest lectures. the following benefits were accrued to a bank branch operating FCs:        Increase in deposits.

10. Chakrabarty held that the RBI is probable to commence the introduction of plastic notes in select parts of India on a trial basis and it would commence with the introduction of Rs. What is the current status of FCs?  During 2009-10.000/. 2013 Deputy Governor. How NABARD supports FCs? NABARD‘s policy support for Farmers‘ Club Programme lays stress on linking technologies with farmers‘ club members and also facilitating market access through the following mechanism:     Capacity building of members of Farmers‘ Clubs including leadership training. Linkage with technology/markets Self Help Groups (SHGs)/Joint Liability Groups (JLGs) formation Forming Federations of Farmers‘ Clubs/Producers‘ Groups/Companies Financial Support from NABARD  NABARD also provides financial assistance of Rs.10 denomination and continue with other small denominations.    Plastic notes can withstand more wear-and-tear than their paper counterparts Have a longer life than paper counterparts Plastic notes are more difficult to fake and could therefore be a means of countering counterfeiting. Krishna Kumar is new ED of Canara Bank . Co-Founder Infosys elected as new President for Industry body Confederation of Indian Industry (CII) for 2013-14.590 Farmers‘ Clubs have been formed taking the cumulative number of farmers‘ Clubs to 54. Gopalakrishnan. afforestation. C. Camp. etc.per club per annum for a period of 3 years to all agencies irrespective of whether they are institutional or other agencies and also the region concerned. community works like road. Mass vaccination camp. RBI to start plastic money project on trial basis April 20th. S. Chairman of Godrej Group. Gopalakrishnan new head of CII S.805 as on 31st March 2010. RBI. Gopalakrishnan will replace Adi Godrej. check-dams. 16. 2013 S. Enhancement in bargaining power for bulk purchase of inputs and marketing of their produce. Important Updates April 8th. K.

Other ways to determine the gold content include – melting Gold down. reconstituted by the Ministry of Information & Broadcasting. The MoU increases by 10%.    Ranked as No. Internationally used device. the Corporation bank has opened ‗gold loan shoppe‘ at 7 places. Corporation Bank‘s gold loan portfolio more than doubled to Rs 3. Finance Ministry appoints auditors without consulting RBI .662 crore as of December 2012 from Rs 1.585 crore as at December 2011. S. it only checks the purity of the gold on the top layer. The MoU rationalizes the capacity entitlements of both India and Singapore in terms of seats per week in each direction with a route specific cap for Singapore on each route. To encourage boost agriculture lending. Krishna Kumar took charge as the ED (Executive Director) of Canara Bank with effect from April 4. 1 in ‗Best Old Private Sector Bank‘ category 3rd in the overall banking industry in terms of ‗Profitability‘. J & K Bank won the prestigious FE India‟s Best Banks Award for 2012-13. 2013.V. 2013 Corporation Bank to use „caratometers‟ in order to check purity of Gold pledged Corporation Bank planning to use ‗cartometers‘ in order to check the purity of Gold pledged. the touchstone method or XRF (x-ray fluorescence) method. 1st in terms of ‗Profitability‘ in the category of ‗Old private sector banks‘. Reconstitution of Central Press Accreditation Committee Central Press Accreditation Committee (CPAC). both Indian as well as foreign. Most showrooms across India use it. thus assuring the purity of gold pledged with the bank by borrowers. Fact Box: Caratometer ( Karatmeter ) April 6th. Uses X-rays to give an exact reading of the purity of gold in about 3 minutes. India and Singapore ink MoU on Air Services India and Singapore inked a new Memorandum of Understanding (MoU) on bilateral air services. However. Function of CPAC: To approve applications for accreditation from the media. Jammu and Kashmir Bank wins FE India‟s Best Banks Award-2012-13 In recognition of its strong fundamentals and dynamic growth model. Karatmeter (also spelt as caratometer):        A scientific and non-destructive method for testing the purity of Gold. Used as a confirmatory test (after the assayer gives his report on the quality of gold). the capacity entitlement with India.

There is also a less high-profile conflict over dividends declared by RBI out of its profits. In the 2013-14 budget.447 crore the year before.May 22nd. 2013 The Reserve Bank of India. the CAG provides a list of CA firms eligible for appointment as statutory central auditors. two central auditors and four local auditors were being appointed by the finance ministry in consultation with RBI. finance ministry has been reviewing RBI‘s balance sheet over the past year. The RBI and the finance ministry appeared to have some friction over many issues in recent months. How does the mechanism? appointment of auditors take place under the existing Under the existing mechanism for the appointment auditors. As per government. the government maintained that there is no relation of appointing auditors to dividends. 2013 Deviating from the earlier practice of consulting the RBI while appointing auditors for the same. Issue only clean notes to public. has directedbanks to eliminate stapling of note packets and issue only clean currency notes to the public. The ministry had suggested that RBI should pay 7% interest on the CRR. particularly over the conduct of monetary policy with senior ministry officials often seemingly dissatisfied over the pace of interest rate cuts by the central bank. It had argued that major central banks either do not mandate a reserve ratio or pay interest on the mandatory reserves they ask banks to set aside. Sort notes into re-issuables and non-issuables.996 crore in dividends from the Reserve Bank of India and state-run banks. What is Clean Note Policy? Clean Note Policy is a policy being run by the RBI with an objective to give the citizens good quality currency notes and coins. . under its Clean Note Policy. this has been done to avoid conflict of interest. the government has assumed 43. a sharp increase from 25. However. What the Finance Ministry is asking RBI to do? Fin Min wants RBI to pay the government more in dividends. After RBI indicated its inability to pay interests. RBI directs banks to adhere to „Clean Note Policy‟ May 18th. Under this policy Banks have been directed the following:    Stop stapling of note packets and instead secure note packets with paper bands. In case of RBI. while the soiled notes are withdrawn out of circulation. The government expects RBI to pay it more dividends. It is also asking the RBI to interests to the banks on the CRR it keeps with itself. As per ministry this step would help slash rates even if the central bank does not ease monetary policy. the government has appointed auditors for the Reserve Bank of India after consulting with the Comptroller & Auditor General (CAG).

has decided to launch Inflation Indexed Bonds (IIBs) to wean away investors from the yellow metal (Gold) to paper-based savings instruments. Why this step? The step is being taken to de-motivate investments in gold as bulging imports of the yellow metal has been adversel y affecting the country‘s Current Account Deficit (CAD).5 billion. Last month. Providing households and other investors a competitive option against gold and real estate. For appropriate price discovery and market development the IIBs will also be auctioned to institutional investors such as Pension Funds. Stop writing of any kind on the watermark window of bank notes. one out of five paper notes in circulation (over 20%) is disposed every year after getting soiled and the number of such soiled currency bills stood at over 13 billion units during the fiscal ended March 31. 2012. IIBs with a maturity period of 10 years will be launched each month by RBI with the objective of diverting household savings from gold into these hedged bonds up to Rs. there was considerable flow of investments from financial savings to safe-haven assets like gold that resulted into higher imports of the metal. RBI will launch a pilot project for plastic or polymer currency notes with an aim to enhance the shelf-life of notes. and Mutual Funds as it will create demand for IIBs and help in making them tradable in the secondary market.9% of GDP at the end of September 2012.000 crore this fiscal. These bonds will be linked to the inflation index of the country (Wholesale Price Index or WPI) and serve as a better investment option as compared to physical assets like real estate and gold. Insurance. As per RBI. IIBs would help in:   Boosting domestic savings and reversing the declining savings-to-GDP ratio.15. 2013 RBI to launch Inflation Indexed Bonds in June 2013 As stipulated in the Budget 2013-14. on an average. the government. How would IIBs help? As per RBI. This new investment instrument with provide an alternative for those who were in recent times going in for investment in gold as a hedge against inflation. Higher the inflation. Fact Box: Inflation Indexed Bonds (IIBs) May 18th. which had surged to a historic high of 6.7% in the third quarter of 2012-13. In the wake of rising inflation last year. imports of gold and silver soared by 138% on an annual basis to $ 7. This led to current account deficit or CAD widening to 4. What are IIBs? Inflation-Indexed Bonds or IIBs are are bonds where the principal is indexed to inflation. They are thus designed to cut out the inflation risk of an investment. in consultation with the RBI. higher the returns. .

a New Delhi court ordered the IOA to hold an election as per government‘s sports code instead of adhering to the IOC‘s charter. including the functioning of large financial conglomerates and address inter-regulatory coordination issues. IOC wanted that election for top posts of IOA to be held as per Olympic Charter. But India‘s national sports code does not adhere to these requirements. Giving investors choice to use IIBs as good hedging instruments against inflation. What is the issue? The membership of the IOA was suspended in December 2012 owing to differences in election procedures of IOA administration body. and the final inflation data based on the Wholesale Price Index (WPI) will be used for providing inflation protection. What would be the role of FSDC? FSDC will perform following role:    To engage in macro prudential supervision of the economy. Following this a fresh election will be held for top administrative posts of IOA. Who would be the head of the Council? . What is the solution reached? The IOA has acquiesced to the demand of IOC to amend its constitution in line with the government‘s Sports Code. To periodically look into issue relating to financial development. The conflict b/w International Olympic Committee (IOC) and the Indian Olympic Association (IOA) is expected to end soon with both the Indian representatives from the government and sports bodies reached an agreement in a meeting with IOC officials. and consequently. To focus on financial literacy and financial inclusion. which insists that organizing committees for each country remain autonomous and free of government influence. How will the Index ratio be determined? The IR (index ratio) will be computed by dividing reference index for the settlement date by reference index for the issue date. Besides. in case of revision in the base year for WPI series. Government to set up Financial Stability and Development Council (FSDC) May 15th. 2013 The Central Government is at consensus to establish Financial Stability & Development Council (FSDC) to strengthen and institutionalize the mechanism for maintaining financial Stability and Development. The IOC has agreed to lift the ban on IOA once it holds fresh election as per the amended constitution of the IOA. base splicing method would be used to construct a consistent series for indexation.

The Council would have one Sub-Committee which would be headed byGovernor, RBI. The Secretariat of the Council would be in theDepartment of Economic Affairs, Ministry of Finance. RBI eases rates, trims repo rate by 25bps to 7.25%
May 4th, 2013

RBI reduced the Repo Rate (the rate at which RBI lends money to commercial banks), to 7.25% from 7.5% while keeping the CRR (Cash Reserve Ratio- the portion of deposits that banks require to maintain with RBI) unchanged at 4%. Monetary Measures      Repo rate: reduction by 25 bps from 7.5% to 7.25% Reverse repo rate: 6.25% (100 bps below repo rate) MSF (Marginal Standing facility) rate: 8.25% (100 bps above repo rate) Bank rate: 8.25% Cash reserve ratio retained at 4% of NDTL (Net Demand and Time Liabilities) Impact of repo rate cut:    Reduced cost of overnight borrowing for commercial banks from RBI. Lead to reduced lending rates, helping in better macroeconomic sentiments. RBI has invoked banks to pass the impact of above to end users as banks hold to factor the benefit. Why a Need of reduction in repo rate ?     In order to continue to address risk towards growth. Insistence by Government and industry to lower borrowing costs to spur economic growth, estimated to have slumped to 5% in the year ended March 31, 2013. Guard against the risks of inflation pressures re-emerging and adversely affecting inflation expectations. Manage liquidity to ensure adequate credit flow to the productive sectors of the economy. Fact Box: Indian Banks‟ Association (IBA)
June 7th, 2013

K R Kamath re-elected as IBA‟s Chairman K R Kamath, the chairman and managing director of Punjab National Bank (PNB), has been re-elected as the Chairman of the Indian Banks‘ Association (IBA) for 2013-14 tenure. Indian Banks‟ Association (IBA)    Established on September 26, 1946. It is an association of Indian banks and financial institutions. It is based in Mumbai. Currently represents a total of 173 banking companies which are operating in India.

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Objective: Strengthening, development and coordination of the Indian banking. It also facilitates various member banks. The Managing Committee of the IBA consists of a chairman, three deputy chairmen, one honorary secretary as well as 26 members. IndusInd Bank ties up with American Express to launch credit card for affluent customers
June 2nd, 2013

IndusInd Bank has joined hands with American Express to unveil IndusInd Bank Iconia American Express Card for its rich customers. Card Benefits The card offers its customers reward golf, entertainment, travel and dining. points and lifestyle benefits such as

Subscribers of the card will get a reward of 1.5 point on weekdays and of 2 points on the weekends on every Rs 100 they spend. These points can then be redeemed for cash credit at full value, i.e, a rupee for each reward point and for partner air miles. IndusInd Bank ventured into the credit card sector after acquiring Deutsche Bank‘s loss making credit card business from its Indian operations in 2011. RBI notifies restrictions on bank loans against Gold
May 31st, 2013

Taking further measures to curb the expanding Current Account Deficit (CAD) and forex outflow, the RBI has imposed restrictions on banks and NBFCs for providing loans against purchase of gold in any form, including primary gold, gold bullion, gold jewellery, gold coins, units of gold ETF and units of gold Mutual Funds to discourage demands for gold. Banks have also been directed to ensure that the amount of loan to any customer against gold ornaments, gold jewellery and gold coins (weighing up to 50 grams) should be within the board approved limit. However , Banks are allowed to grant of advances against specially minted gold coins sold by banks, there is a risk that some of these will weigh much more, thereby circumventing the RBI‘s guidelines regarding restrictions on grant of advance against gold bullion. Current Status: At present, banks are allowed to provide advances against gold ornaments and other jewellery and against specially minted gold coins sold by banks. However, no advances can be granted by banks for purchase of gold in any form, including primary gold, gold bullion, gold jewellery, gold coins, units of gold exchange traded funds and units of gold mutual funds. Why this measure? India is one of the largest importers of gold. In the last few years, India has witnessed a sharp rise in the demand as well as in the prices of gold which has in turn led to bigger imports. As the imports are generally paid in dollars/ foreign currency, it has led to massive outflow of foreign exchange reserves leaving a huge CAD. CAD occurs when a

country‘s total imports of goods, services and transfers are greater than the country‘s total export of goods, services and transfers. This situation makes a country a net debtor to the rest of the world. Very high CAD is detrimental to the outlook of the whole economy of the country. Government has taken several steps recently, including raising import duty, to curb the inbound shipments of gold. RBI too had put restrictions on banks on gold imports. SEBI to double charges for Algorithmic (Algo) trading
May 23rd, 2013

Market regulator SEBI has announced that it will double the charges for orders based on Algorithms (algo) in stock exchanges from May 27, 2013. What is Algo Trade?  Algorithmic (Algo) trading refers to orders generated by use of advanced mathematical models that involve automated execution of trade. It is mostly used by large institutional investors and has raised concerns that algo exposes small investors to possible systemic risks. Charges on an algo trade vary among exchanges. Why SEBI is increasing the charges on Algo trade?   Algo trading method is mostly used by large institutional investors and has raised concerns that algo exposes small investors to possible systemic risks. The move to increase the algo trade charges is intended to disincentivise those having high order-to-trade ratio using algo. Brokers with repetitive instances of high daily order-to-trade ratio will face additional penalty in the form of suspension of their proprietary trading book. Shashi Kant Sharma sworn-in new CAG
May 23rd, 2013

The President of India has appointed Shashi Kant Sharma, IAS, as Comptroller & Auditor General of India, in terms of Article 148 (1) of the Constitution of India. Sharma (61) is a 1976 batch Indian Administrative Service (IAS) officer of the Bihar cadre and was before serving as secretary in the Ministry of Defence. Sharma succeeds Vinod Rai whose audit reports on 2G spectrum and coal block allocations during triggered a number of controversies and brought in the concept of presumptive loss in audit. The CAG has tenure of 6 years, or till the incumbent is 65, whichever is earlier.

What is the controversy over appointment of Shashi Sharma as CAG ? Mr. Prashant Bhushan (Aam Aadmi Party leader and a Supreme Courtlawyer) objected Sharma‘s appointment as the CAG, terming it illegal and unconstitutional. Mr. Prashant Bhushan‘s laid the contention was that Sharma in the last 10 years held many sensitive positions in the defence ministry that dealt with procurements and his appointment as the CAG would mean a “conflict of interest‖ as he will be auditing defence deals in which he had a role as defence secretary. A public suit has also been filed in the Supreme Court challenging Sharma‘s appointment as the CAG. Railways to launch Mobile Payment Ticketing Facility
June 13th, 2013

Soon, passengers will be able to book their train tickets via mobile SMS as Indian Railways is to start Mobile Payment Ticketing Facility from July 1, 2013. The service will be available to all mobile subscribers. This facility offered by irctc, will have no role of travel agents and commercial organisations. Only individual users will be allowed to book on the portal. Travel agents in the IRCTC service have been accused of blocking tickets to sell them at a premium. How to book the ticket? A passenger has to type the train number, destination, journey date, class and passenger details like name, age and gender on the SMS box. For starting, one has to register their mobile number with IRCTC as well as their bank. The bank provides MMID (Mobile Money Identifier) andOTP (One Time Password) for payment authorization. The sender will receive transaction ID and then make payment through sending another SMS by typing PAY followed by the transaction ID, MMID as received from the bank and password, thus the booking is complete. Charges: The service will be available to all mobile subscribers and Rs 3/- will be charged per SMS and payment gateway charges will be Rs 5/- for ticket amount upto Rs 5,000 and Rs 10/- for more than Rs 5,000. Banks to audit documents of credits of Rs 5 Crore and above periodically: RBI
June 11th, 2013

As per the directions made by RBI, Banks will have to do periodical audits and reverification of the documents of all credits of and above Rs 5 crore, till the loan is completely repaid. The instructions have been made in order to check frauds. As notified by the RBI, the banks should provide quarterly review notes of such audits that include information like number of accounts where rectification is required, list of deficiencies observed by auditors and steps taken to rectify the deficiencies. The direction came up after RBI found a large volume of frauds at the time when the branches of banks were under concurrent audit. The bank found that frauds were perpetrated on account of the submission of forged documents of the borrower, which were certified by advocates/chartered accountants/valuers. RBI imposes restrictions on gold loans by Co-op banks
June 10th, 2013

Intensifying the efforts to discourage the demand for gold. In addition. which is likely to be around 5% of the GDP in 2012-13. What is e-BRC?  e-BRC is electronic form of earlier physical Bank Realization Certificate. gold jewellery and gold coins (weighing up to 50 grams) should be within the Board approved limit. 2013 MoU inked b/w DGFT and Government of Delhi to use e-BRC (Bank Realization Certificate) An MoU was signed b/w the Directorate General of Foreign Trade (DGFT) and Commissioner (Trade and Taxes) and Government of NCT of Delhi for making use of electronic Bank Realization Certificate (e-BRC). RBI has also imposed restrictions on gold imports by banks. the government raised import duty on gold to 8% from 6%. RBI has directed state/central co-operative banks to ensure that the weight of the specially minted gold coin(s) for which they are granting advance does not exceed 50 grams per customer. 2013  The Indian Banks‟ Association (IBA) has been asked by the Finance Ministry to set up an independent body to oversee the Corporate Debt Restructuring (CDR) mechanism. The monthly average of gold import in 2012-13 was 70 tonnes. Banks have also been advised not to sell gold coins. Finance Ministry asks IBA to set up independent body to oversee CDR mechanism June 8th. who will not be required to make any request to bank for issuance of bank export and realisation certificate (BRC). It was launched in 2012 by thethe Directorate General of Foreign Trade (DGFT) to reduce transaction cost to exporters. The first state to sign this MoU was Maharashtra. The rise in gold import is also linked to the fall in its prices in the internationalmarket. Recently. With this. BRC data is used by VAT. Also the amount of loan to any customer against gold ornaments. It is an important document required for claiming benefits under various Foreign Trade Policy schemes. Delhi has become the second state to sign the MoU. The step has taken after witnessing a surge in the number of debt restructurings over . The increasing imports of the yellow metal has become a cause of concern for both the government as well as the RBI as it putting pressure on the CAD (Current Account Deficit). Fact Box: e-BRC (Bank Realization Certificate) June 8th. the Reserve Bank of India has extended the restriction on advance against gold on co-operative banks as well. Similar limitations are already in force on commercial banks. BRC is issued by a bank after realization of export proceeds in the country. Income Tax and Drawback departments.

600 crore) the previous year. Both the IBA and the finance ministry has expressed concern that banks and their clients are taking undue advantage of the CDR mechanism.the past two years. Under CDR.470 crore. The committee will act as an advisory body which will help the banks examine a particular case and it will not be mandatory for a bank to go to the committee. in 2012-13. This was a rise from 50 cases (exposure of Rs 39. of Rs 76. should be classified as NPA. It has said all loans to be restructured after April 1. The Independent Body:  The independent oversight mechanism will not have any government representative or any serving banker but some experts who will scrutinize from the correctness point of view whether the case referred is genuine. The finance ministry has been asking banks to deal strictly with wilful defaulters and to become more aggressive on loan recovery.    . there were 106 cases of restructured loans. deferring the issue of Non-Performing Assets‘ (NPA) formation. The Reserve Bank of India has also made the debt recast norm tougher. 2015.

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