Banking awareness

19 JUL, 2015

1) Leading mobile wallet service Paytm recently requested asked Reserve Bank of India (RBI) to

hike the limit on money that can be kept in a mobile wallet to Rs. 25,000. What is the present

RBI limited for mobile wallet services? – Rs. 10,000

Explanation: Under the existing RBI norms, only a minimum know your customer (KYC) of the

mobile number and e-mail ID verification is sufficient to hold Rs. 10,000 in a mobile wallet. For

anything higher, a full KYC, similar to what is required for opening of a bank account, is

mandatory. This maximum cash limit of Rs. 10,000 was set by the RBI some years ago. But the

recent trends have disclosed that in major metros and large cities, where cost of living and

mobile penetration are high, customers are crossing the Rs. 10,000 limit set by the RBI. Over 85

million people now use Paytm mobile wallet for transactions worth Rs. 700 crore every month. In

this respect Paytm has requested the RBI to raise the upper cash limit for mobile wallets.

Indians, both with and without bank accounts, are finding mobile wallets a convenient way to pay

for a number of goods and services such as online purchases, recharges, utility payments and

online-to-offline services such as cabs or food ordering.

2) The Reserve Bank of India (RBI) on 9 July 2015 allowed mass transit system (MTS) operators

like Mumbai Metro, Delhi Metro, Indian Railways, etc. to issue pre-paid cards to their customer.

This is expected to provide a huge relief to the commuters who face problems while purchasing

tickets. According to the related RBI guidelines, what is the maximum limit of these proposed

prepaid instruments? – Rs. 2,000

Explanation: MTS operators will now be able to issue pre-paid cards to their customers. The

customers can easily transfer money to these cards that can be swiped on machines instead of

standing in long queues to purchase travel tickets. RBI guidelines also say that the balance in

the prepaid instrument issued by the MTS should not exceed Rs 2,000 at any point of time. Also,

MTS would not be allowed to refunds cash that is stocked in the pre-paid instruments (PPI).

These PPIs will have a minimum validity of six months from the date of issue. The PPI-MTS will

enhance commuter convenience and will also facilitate the migration to electronic payments in

line with the country’s vision of moving to a less-cash society.

3) State Bank of India (SBI) on 17 July 2015 announced its proposal of sharing profits with its

employees as part of an initiative for talent retention and motivation. The bank has offered up to

how much of its profits under this proposal, which has been submitted to the Finance Ministry?

– 3%

Explanation: SBI chairperson Arundhati Bhattacharya disclosed about this proposal on 17 July

2015. It is worth mentioning that the Union Govt. already allows SBI to share up to 1% of profits

with its employees but the bank wants this limit to be hiked to 3%. SBI Chairperson claimed that

employees incentivisation through sharing profits is necessary especially for people in senior

management and mid-level management as the amount that they get in the private sector is

much higher than they get in the public sector. So employees, who achieve higher levels of skills

because of their merit and hard work, are easily picked up by private sector. For the fiscal ended

March 2015, SBI’s net profit increased 20% to Rs 13,101.57 crore as compared to Rs 10,891.17

crore for the year ended March 2014. The bank has about 2.3 lakh employees.

4) In a first-of-its-kind initiative, Union Govt. on 8 July 2015 appointed an executive from the

private sector to head a public sector financial institution. This appointment was done for the

post of Managing Director and CEO of National Housing Bank (NHB). What is the name of the

executive appointed to head NHB? – Sriram Kalyanaraman

Explanation: NHB is the regulator of India’s housing finance sector. Sriram Kalyanaraman

became the first person from the private sector to head a public sector financial institution when

he was appointed MD and CEO of NHB. His appointment is for five years from the date of taking

over the charge. At present, Kalyanaraman is Director-Business Development, Equifax Credit

Information Services.

5) Who was named as the first Chairman of the soon to be opened Bandhan Bank, which

announced its Board of Directors on 9 July 2015? – Ashok K. Lahiri

Explanation: Ashok K. Lahiri, a former Chief Economic Advisor (CEA), was named as the first

Chairman of Bandhan Bank. Chandra Sekhar Ghosh will be the MD and CEO of the bank. The

other directors on board include B Sambamurthy, former CMD of Corporation Bank; CM Dixit, Sr

Partner at GD Apte & Co; Krishnamurthy Subramanian, Associate Prof. at Indian School of

Business; Snehomoy Bhattacharya, former ED at Axis Bank; Pradip K. Saha, former CGM at

SIDBI; Sisir Kr Chakrabarti, former Dy MD at Axis Bank; Bhaskar Sen, former CMD at UBI and

PS Raji Gain, CGM NABARD. The bank will start its operations from 23 August 2015 and will be

inaugurated by the President of India, Pranab Mukherjee.

6) Finance Minister Arun Jaitley on 16 July 2015 announced that the government has simplified

rules for foreign investment in companies by clubbing together different categories. This will

effectively give equal treatment to global capital entering India. What will be the major benefit of

this move for Indian banks? – Now it will become easier for Indian banks to raise capital up

to a foreign ownership limit of 74%

Explanation: One of the most important decisions in relation to the investment is the

introduction of composite caps for simplification of foreign direct investments (FDI) in the

country. Previously, foreign capital had been subject to varying restrictions – a legacy of India’s

socialist past and its lingering reluctance to allow capital to move freely across its borders. For

Indian banks, the shift will lead to an increase in their effective free float – or the number of

shares that can be easily traded. That in turn would lead to an increase in their weighting in

benchmark indexes tracked by many fund investors. Union Govt. has also allowed 100%

investment in pharmaceuticals and railway infrastructure under a so-called automatic route that

does not require official approvals.

7) Who was named as the first Chief of the Beijing-backed Asian Infrastructure Investment Bank

(AIIB), which is being established as an alternative financial entity to the U.S. and Europe-

dominated banking institutions? – Jin Liqun

Explanation: Jin Liqunis is a former Finance Minister of China and he was named by China as

the first Chief of the AIIB on 6 July 2015. AIIB is a multilateral development bank proposed by

the government of China to provide finance to infrastructure projects in the Asia region. The

bank was proposed by China in 2013 and launched at a ceremony in Beijing in October 2014.

The bank has 33 founding members from the Asian region and 17 founding members from

outside the region. India is one of the founding members of AIIB and has second highest stake

in it after China. AIIB is being seen as a rival to the U.S. and Europe-dominated banking

institutions.

8) Union Government on 7 July 2015 raised the minimum daily wage for workers by Rs. 23. This

increase was done after a gap of 2 years. What is the new minimum wage for workers after this

increase? – Rs. 160 per day

Explanation: The decision to revise upwards the National Floor Level Minimum Wage (NFLMW)

was taken in view of the increase in retail inflation for industrial workers. It has been revised from

present level of Rs. 137 to Rs. 160 per day and became effective from 1 July 1995. While

reviewing the movement of Consumer Price Index (Industrial Workers) during April 2014 to

March 2015 over April 2012 to March 2013, it was observed that the average CPI-IW has risen

from 215.17 to 250.83. The wage was last revised to Rs. 137 from Rs. 115 per day effective 1

July 2013.

9) Global economy and financial markets, including India on 8 July 2015 saw new reasons for

worry as the market meltdown in China reached worrying levels. For the first time global markets

were affected by continued decline in China. What is the main reason for declining markets in

China? – Reduction in demand which has threatened a huge slowdown in Chinese

economy

Explanation: China has been witnessing a decline in demand for almost all commodities for

several quarters. This has resulted in low production across sectors. China’s stock market has

lost over $3 trillion in value in less than a month, wiping close to 37% off the market’s valuation

from the peak of 12 June 2015. The intensity of the loss can be judged from the fact that it is

nearly twice the market capitalisation of all stocks traded in India and more than the Spanish,

Russian, Italian, Swedish and Dutch stock markets combined. This decline was till now without a

domino effect across the world, mainly due to absence of foreign institutional investors (FIIs) in

China. However, as decline reaches new levels the global markets are now bracing for its

impact. The worldwide markets for the first time were affected by Chinese decline on 8 July and

global markets witnessed a huge decline. This was after Chinese markets tumbled again on 8

July as a range of government measures aimed at preventing a further decline in share prices

had no impact. It is worth mentioning that the markets had, till now, fixed their attention towards

Greek economy. But now it became clear that as market fall in China accelerates the economic

slowdown, other countries that have not been affected by China’s market fall will be hit. This is

mainly due to the fact that China is the largest consumer of a number of goods and commodities

in the world.

10) In an important step, Union Government on 8 July 2015 allowed seven state-owned entities

to raise Rs. 40,000 crore in the current fiscal through tax-free bonds. Which are the seven PSUs

that have been given the permission? – National Highways Authority of India (NHAI), Indian

Railways Finance Corporation (IRFC), Housing and Urban Development Corporation

(HUDCO), Indian Renewable Energy Development Agency (IREDA), NTPC, Power Finance

Corporation (PFC) and Rural Electrification Corporation (REC)

Explanation: The National Highways Authority of India has been given the permission to raise

maximum amount of Rs. 24,000 among the 7 PSU entities. IRFC has been allowed to raise Rs.

6,000 crore. HUDCO has been allowed to raise Rs.5,000 crore and IREDA Rs.2,000 crore.

NTPC, PFC and REC can issue tax-free bonds of Rs.1,000 crore each. Retail investors, which

include HUFs and NRIs investing on repatriation basis, can invest up to Rs.10 lakh in such

bonds. Those investing higher amount would be classified as HNIs. The bonds will have a

tenure of 10, 15 or 20 years and the interest rates is to be decided with reference to the rates of

Government Securities.

06 Jul, 2015

1) Which bank on 4 July 2015 became the first in the country to launch the MUDRA Card, under

the Pradhan Mantri MUDRA Yojana (PMMY) scheme? –Corporation Bank

Explanation: The MUDRA (Micro Units Development and Refinance Agency) card under the

Pradhan Mantri MUDRA Yojana (PMMY) scheme was launched by the Corporation Bank on 4

July 2015 and the bank thus became the first in the country to do so. The card facilitates the

withdrawal and use of the working capital finance by micro entrepreneurs. Three loan schemes

are offered to the entrepreneurs under MUDRA based on their capacity to repay. “Shishu”

scheme provides loan up to Rs.50,000, while a loan amount up to Rs. 5 lakh will be lent under

“Kishore” scheme. Under “Tarun” scheme loan up to Rs. 10 lakh will be offered.

2) What is the percentage of gross non-performing assets (gross NPA) for public-sector banks

as on 31 March 2015 as reported in the recently held annual review meeting of the Union

Finance Minister with the CEOs of banks, insurance companies and financial institutions (FIs)?

– 5.17%

Explanation: It was reported that the public-sector banks continue to report higher bad loans

and the gross non-performing assets as on 31 March 2015, stood at 5.17%. The stressed assets

ratio (which includes NPAs and restructured loans) was 13.2%. The rise was due to some

infrastructure projects, slowdown in global economic recovery, and continuing uncertainty in

global markets leading to lower growth of credit.

Other important points that came out of this annual review:

– The gross non-performing assets (GNPA) of 26 public sector banks (including 19 nationalised

banks, State Bank of India and its associates and IDBI) have risen by 22.5% to Rs.2.78 lakh

crore against Rs.2.27 lakh crore in the previous financial year.

– While the 19 nationalised banks have registered a rise of 39.8% in gross NPA at Rs.1,92,270

crore against Rs.1,37,487 crore in the previous financial year, State Bank of India and its

associates have reported eight per cent drop in their NPAs at Rs.73,508 crore against

Rs.79,818 crore.

– The gross NPAs of new private sector banks — consisting of Axis Bank, DCB Bank

(Development Credit Bank), HDFC Bank, ICICI Bank, Kotak Mahindra Bank and Yes Bank, has

risen by 35.3% to Rs.24,534 crore in 2014-15 from Rs.18,133 crore in the previous financial

year.

– Among the new private sector banks, ICICI Bank, with 43.7% rise in gross NPA at Rs.15,095

crore against Rs.10,506 crore, contributes to the maximum followed by DCB Bank (Development

Credit Bank) at 33.8% (the increase is on a lower base).

– The gross NPAs of eight old private sector banks (listed on stock exchanges) and Tamilnad

Mercantile Bank put together shows a rise of 50% at Rs.7,755 crore against Rs.5,170 crore in

2013-14.

– Among the eight old private sector banks, Jammu & Kashmir Bank tops the list with a sharp

rise of 253% at Rs.2,764 crore against only Rs.783 crore, followed by Karur Vysya Bank with

143% rise at Rs.678 crore (Rs.279 crore) and South Indian Bank (48.5%). Tamilnad Mercantile

Bank has shown a reduction in NPA to 318.68 crore from Rs. 428 crore. Lakshmi Vilas Bank has

reduced its NPA significantly to Rs.455 crore from Rs.546 crore, followed by Federal Bank to

Rs.1,058 crore from Rs.1,087 crore.

3) The signing ceremony of the Asian Infrastructure Investment Bank (AIIB) took place at the

Great Hall of the People in Beijing on 29 June 2015. 50 founding members of AIIB, including

India, signed on the articles of AIIB that determine each country’s share and the lender’s initial

capital. What is India’s stake in AIIB? –8.52%

Explanation: The AIIB is expected to focus on infrastructure development in Asia, and unlike

the existing International Monetary Fund (IMF) and World Bank, is unlikely to restrict lending on

political considerations. The bank will have its headquarters in Beijing. India is its second largest

shareholder with a stake of 8.52% and voting share of 7.5%. The voting shares are based on the

size of each member country’s economy and not contribution to the Bank’s authorised capital.

China’s shareholding is 30.34% and it has retained 26.06% of the voting rights with veto powers

for certain key decisions. Some prominent countries, which are members of AIIB include –

Australia, Bangladesh, Brazil, Cambodia, Finland, France, Germany, Italy, Jordan, Nepal,

Netherlands, New Zealand, Norway, Pakistan, Portugal, Republic of Korea, Russia, Saudi

Arabia, Singapore, Spain, Sri Lanka, Sweden, Switzerland, and the U.K.

4) What is the name of the online forex platform launched by State Bank of India (SBI) on 19

June 2015 that enables customers to book their foreign exchange transactions online? – SBI

eforex

Explanation: eforex is the name given to the Internet-based forex (foreign exchange) platform

launched by the SBI that facilitates the customers of the bank to obtain forex rates without

having to physically visit the branch and enable customers to book their foreign exchange

transactions online. SBI eforex is also an innovative platform incorporating robust security

features and is designed to be user-friendly, fast and convenient. It is a highly flexible product

offering the facility to the customers to customise and set their own limits for deal size, daily

transaction limits etc.

5) In an unprecedented event, the Reserve Bank of India (RBI) remained opened on 1 July 2015

so as to facilitate settlement of public and market transactions. Normally, RBI remains closed for

public transactions on every year’s 1 July. Why? –  Because RBI has its annual closing of

accounts on this day

Explanation: It is worth mentioning that while April to March is the accounting year for almost

whole business fraternity in India, RBI’s accounting year is from July to June. Hence, till date

RBI used to remain close for public transactions on 1 July. But moving away from the tradition,

the RBI remained opened for public on 1 July 2015 and continued to provide services such as

RTGS/NEFT, transfer of funds and settlement of securities, etc. to the general public.

6) Greek banks went into a bank holiday from 29 June 2015 after talks between Greece and the

European Union (EU) and other creditors failed to reach any conclusion. What is the main

reason for Greek Government imposing this bank holiday? –Because the European Central

Bank (ECB) announced it would turn off emergency lending to Greek banks

Explanation: The failure to reach a deal with creditors leaves Greece set to default on 1.6 billion

euros of loans from the International Monetary Fund (IMF) that fall due on 30 June 2015. It is

worth mentioning that the (ECB) has been providing the so-called Emergency Liquidity

Assistance (ELA) to Greek banks. The ECB maintained that it will maintain its ELA to Greece at

current levels. But without an increase in the ELA, Greece will likely run out of cash before 5 July

2015. Greek Prime Minister has announced to call a referendum on 5 July on a proposed bailout

package from the EU. And since Greeks have been withdrawing money in heavy amounts from

banks, the Greek govt. announced a bank holiday effective from 29 June. A bank holiday

involves closing banks thereby limiting the ability for funds to be withdrawn. It is typically

implemented to avoid a bank run. Under the bank holiday, all Greek banks were closed and the

stock markets shut for a week, and there will be a daily 60 euro limit on cash withdrawals from

cash machines. The holiday will end on 6 July 2015.

7) Country’s largest bank State Bank of India (SBI) on 30 June 2015 announced its tie-up with

which travel company with an objective to capitalise on the business opportunities of the

booming e-commerce and m-commerce ecosystem? –MakeMyTrip.com

Explanation: The partnership between SBI and MakeMyTrip.com includes partnership with

personal banking unit for consumer facing propositions – including EMIs on purchase of holidays

& international travel, customized travel products like Forex cards and travel products that

inspire SBI customers to travel. On the other hand MakeMyTrip customers will be able to access

special offers from SBI on debit/credit cards and personal financing. SBI chairperson Arundhati

Bhattacharya said that “SBI aims at becoming a “One Stop” solution provider for the entire range

of financial needs of e-Commerce players as well as our customers in the market.”

8) Which African country is on its way to legally end its virtually worthless local currency which

has witnessed hyper-inflation as high as 500 billion per cent in the recent times? –Zimbabwe

Explanation: Zimbabwe has decided to end the local currency (Zimbabwean Dollar) by

September 2015. This process started from 15 June 2015 bank accounts with balances of up to

175 quadrillion Zimbabwean dollars to be paid just US$ 5 in the exchange. This is due to the fact

that the Zimbabwean dollar has become almost worthless. It is worth mentioning that at the

height of Zimbabwe’s economic crisis in 2008, Zimbabweans had to carry plastic bags bulging

with bank notes to buy basic goods like bread and milk. Prices were rising at least twice a day.

According to the Reserve Bank Zimbabwe (RBZ), the customers who held Zimbabwean dollar

accounts before March 2009 can approach their banks to convert their Zimbabwean dollar

balance into dollars. The process will legally end the local currency. Zimbabweans have until

September 2015 to turn in their old bank notes. Customers who still have stashes of old

Zimbabwean dollar notes can walk into any bank and get $1 for every 250 trillion they hold.

9) An annual report by the Boston Consulting Group (BCG) concluded that Asia has overtaken

Europe as the world’s second-richest region in the world. The report concluded that The Asia

Pacific, excluding Japan, held $47 trillion (£30tn) in private wealth during 2014 to overtake

Europe. Which region still remains world’s richest region according to the report? – North

America

Explanation: North America is the world’s richest region with $51 trillion, but is expected to be

surpassed by Asia in 2016. Asia is also projected to hold 34% of global wealth in 2019. Overall,

global private financial wealth grew by nearly 12% last year to $164 trillion, lifted by strong gains

in the stock and bond markets. The BCG report concluded that as in both 2012 and 2013, Asia-

Pacific (excluding Japan) remained the fastest-growing region in 2014. By contrast, growth rates

in all ‘old world’ regions remained in the single digits, led by Western Europe and North America,

and with Japan lagging somewhat behind.

19 Jun, 2015

1) The Reserve Bank of India (RBI) on 2 June 2015 cut the Repo Rate by 25 basis points. The

latest cut takes the number of rate cuts this calendar year to three. What is the new Repo Rate

after this cut? – 7.25%

Explanation: Taking advantage of subdued inflation to give more support to the economy, the

RBI Governor Raghuram Rajan cut the benchmark Repo Rate by 25 basis points to 7.25%.

Previous cuts, in January and March 2015, had also been by 25 basis points. But, two other

important rates – Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR), were left

unchanged. The reduction showed policymakers recognised the need to put the economy on a

sounder footing, regardless of data released on 29 May 2015 that disclosed that India outpaced

China by growing 7.5% in the March quarter. The rate reduction answered calls from both the

government and businesses for the RBI to do more to shore up the economy. Corporate

earnings have been dismal, growth in bank lending has been the lowest in almost two decades,

and weak industrial output data is at odds with the strong GDP numbers.

2) The Reserve Bank of India (RBI) on 8 June 2015 made which important announcement which

is being seen as a significant move to provide a more flexible process for banks to recover bad

loans? – It allowed banks to acquire 51% or more stake in companies defaulting after

restructuring of their loans

Explanation: It is worth mentioning that banks have been reporting more losses from

restructured assets of-late and the RBI move is primarily aimed at resolving stress in the banking

system. The RBI has, however, advised banks to sell the stake to a new promoter ‘as soon as

possible’, but they should ensure the buyer is in no way related to the borrower. The other

measures announced under the new scheme ‘strategic debt restructuring’ (SDR) include

allowing lenders to convert debt into equity within 30 days of review of companies’ accounts. In

addition, lenders acquiring shares of listed companies under restructuring would be exempted

from making open offers. These restructuring norms would also apply to all company accounts

before 8 June 2015.

3) Who was nominated as the new non-executive Chairman of ICICI Bank by the board of the

bank on 9 June 2015 to replace K.V. Kamath? – M.K. Sharma

Explanation: M. K. Sharma will succeed KV Kamath, who would step down from the Board to

take on a bigger role as the first President of New Development Bank, established by the BRICS

nations. He was earlier the Vice Chairman of Hindustan Unilever Ltd (HUL). Sharma was also an

independent Director on the Board of ICICI Bank for eight years from 2003 to 2011 and is an

independent director of several companies. Sharma will have tenure of 5 years.

4) Which major international banking entity on 9 June 2015 made announcement to cut almost

50,000 jobs from its payroll, axe its investment bank and shrink its risk weighted assets by $290

billion in an effort to improve its sluggish performance? –HSBC

Explanation: HSBC is the largest bank in Europe. It made this announcement to the Hong Kong

stock exchange ahead of an important presentation to investors and analysts. This is the second

major strategic plan for HSBC CEO Stuart Gulliver since he took the charge at the start of 2011.

The job cuts, which will affect almost a fifth of the bank’s workforce, involve 25,000 staff from the

expected sales of the lender’s Brazil and Turkey units and 22,000-25,000 from the consolidation

of IT and back office operations and branch closures. However the cuts, to be completed by

2017, will be followed by some hiring in growth businesses and the bank’s compliance division.

Apart from this, HSBC will shrink the global banking and markets division to less than one third

of its $2.6 trillion balance sheet from its current level of around 40%. It is worth mentioning that

HSBC has been under pressure from investors for carrying out radical cuts at its global banking

and markets divisions.

5) Which mutual fund house retained its position as the most profitable fund house in India in

2014-15 as disclosed in the data released by industry body AMFI recently? –HDFC Mutual

Fund

Explanation: The profit after tax (PAT) for HDFC Mutual Fund stood at Rs. 416 crore during

2014-15. Its rival Reliance Mutual Fund was able to retain its second position with PAT of

Rs. 357 crore during last fiscal. ICICI Prudential MF, the second largest fund house in terms of

assets base, reported a profit after tax of Rs. 247 crore, while Birla Sunlife MF posted a PAT

of Rs. 123 crore. On the assets under management (AUM) front, HDFC maintained its lead with

assets base of Rs. 1.46 lakh crore, followed by ICICI MF Rs. 1.32 lakh crore, Reliance

MF Rs. 1.24 lakh crore and Birla Sunlife MF at Rs.1.07 lakh crore.

6) The State Bank of India (SBI) on 2 June 2015 cut its base lending rate by 15 basis points

hours after the RBI had reduced the Repo Rate by 25 basis points. What is the new lending rate

of SBI after this cut? – 9.7%

Explanation: SBI, which is India’s top lender by assets, cut its base lending rate by 15 basis

points to 9.7%, which will came into effect from 8 June 2015. With this, the equated monthly

installments (EMIs) on home and auto loans are likely to come down. Apart from SBI, some

other smaller state lenders also announced base lending rate cuts of between 25 and 30 basis

points. Allahabad Bank, Dena Bank, and Punjab and Sind Bank also announced rate cuts on the

same day.

7) The Reserve Bank India (RBI) on 11 June 2015 gave permission to which investor segment

to invest in regulated chit funds in India? – Non-Resident Indians (NRIs)

Explanation: The permission to Indians abroad for participation in chit funds comes with riders.

NRIs can subscribe to chit funds through banking channels, including accounts maintained in

India. The state governments or Registrar of Chits may permit chit funds to accept subscription

from NRIs on non-repatriation basis. This should be done in accordance with the provisions of

the Chit Fund Act.

8) The Bangladesh government recently allowed Life Insurance Corporation of India (LIC) to

form a joint-venture to operate its services in the country. What will be the name of the joint-

venture to be formed by LIC in Bangladesh? – LIC Bangladesh

Explanation: The Bangladesh IRDA gave its consent letter to LIC to start its operations in

Bangladesh. LIC would thus become the second foreign insurer to operate in the country. LIC

was allowed to start operations as a joint venture entity to be called “LIC Bangladesh” with a

paid up capital of Taka 1 billion ($1=Tk 80). LIC will hold half of the amount while the rest would

be owned by its Bangladeshi partners raising the amount from the capital market and local

entrepreneurs. LIC thus became the second foreign insurance agency after the US-based

MetLife-ALICO, which only has a branch office in Bangladesh and is not a joint venture

registered company. Apart from two state-run insurance companies, Bangladesh currently has

60 insurance companies in private sector, 43 of them being general and 17 life.

9) Union Govt. on 3 June 2015 notified the amendments in the definition of NRIs as contained in

the FDI policy. What is the broad change in this definition? – According to the new definition

NRIs would also include Overseas Citizens of India (OCIs) and Persons of Indian origin

(PIOs)

Explanation: The Union Cabinet, chaired by Prime Minister Narendra Modi, had cleared these

amendments during May 2015. According to the notified policy relaxations for NRIs by the

Department of Industrial Policy and Promotion (DIPP), non-repatriable investments by non-

resident Indians, overseas citizens of India and persons of Indian origin will be treated as

domestic investments and will not be subject to foreign direct investment caps. The decision is

expected to result in increased investments across sectors and greater inflow of foreign

exchange remittances leading to higher economic growth. The government has also notified

increase in FIPB’s power to recommend foreign investment proposals of up to Rs. 3,000 crore

from the earlier Rs 2,000 crore. Beyond this limit, proposals will go to the Cabinet Committee on

Economic Affairs for approval.

10) The Union Cabinet on 10 June 2015 decided to bring in an ordinance to amend the

Negotiable Instruments Act, which provides for filing of cheque bounce cases in place where the

cheque was issued. What the govt. wants to achieve by brining this ordinance? – It seeks to

overturn a Supreme Court 2014 ruling said the case has to be initiated where the cheque-

issuing branch was located

Explanation: The Supreme Court had passed a judgement in 2014 that if a person receives a

cheque from someone and the cheque gets bounced, then the jurisdiction for initiating action lies

in the State where it was issued. This ruling resulted in filing of over 18 lakh cases in various

courts spread across the country and immense hardships to people involved in these cases.

Government had brought a Bill (Negotiable Instruments (Amendment) Act, 2015) in this regard in

Parliament and it was passed in the Lok Sabha in May 2015. The amendment passed by the

Lok Sabha provided that cases of bouncing of cheques can be filed only in a court in whose

jurisdiction the bank branch of the payee (person who receives the cheque) lies. If a complaint

against a person issuing a cheque has been filed in the court with the appropriate jurisdiction,

then all subsequent complaints against that person will be filed in the same court, irrespective of

the relevant jurisdiction area. However, as the Rajya Sabha could not pass it, the government

has brought this ordinance so as to give relief to these people.

06 Jul, 2015

1) Which bank on 4 July 2015 became the first in the country to launch the MUDRA Card, under

the Pradhan Mantri MUDRA Yojana (PMMY) scheme? –Corporation Bank

Explanation: The MUDRA (Micro Units Development and Refinance Agency) card under the

Pradhan Mantri MUDRA Yojana (PMMY) scheme was launched by the Corporation Bank on 4

July 2015 and the bank thus became the first in the country to do so. The card facilitates the

withdrawal and use of the working capital finance by micro entrepreneurs. Three loan schemes

are offered to the entrepreneurs under MUDRA based on their capacity to repay. “Shishu”

scheme provides loan up to Rs.50,000, while a loan amount up to Rs. 5 lakh will be lent under

“Kishore” scheme. Under “Tarun” scheme loan up to Rs. 10 lakh will be offered.

2) What is the percentage of gross non-performing assets (gross NPA) for public-sector banks

as on 31 March 2015 as reported in the recently held annual review meeting of the Union

Finance Minister with the CEOs of banks, insurance companies and financial institutions (FIs)?

– 5.17%

Explanation: It was reported that the public-sector banks continue to report higher bad loans

and the gross non-performing assets as on 31 March 2015, stood at 5.17%. The stressed assets

ratio (which includes NPAs and restructured loans) was 13.2%. The rise was due to some

infrastructure projects, slowdown in global economic recovery, and continuing uncertainty in

global markets leading to lower growth of credit.

Other important points that came out of this annual review:

– The gross non-performing assets (GNPA) of 26 public sector banks (including 19 nationalised

banks, State Bank of India and its associates and IDBI) have risen by 22.5% to Rs.2.78 lakh

crore against Rs.2.27 lakh crore in the previous financial year.

– While the 19 nationalised banks have registered a rise of 39.8% in gross NPA at Rs.1,92,270

crore against Rs.1,37,487 crore in the previous financial year, State Bank of India and its

associates have reported eight per cent drop in their NPAs at Rs.73,508 crore against

Rs.79,818 crore.

– The gross NPAs of new private sector banks — consisting of Axis Bank, DCB Bank

(Development Credit Bank), HDFC Bank, ICICI Bank, Kotak Mahindra Bank and Yes Bank, has

risen by 35.3% to Rs.24,534 crore in 2014-15 from Rs.18,133 crore in the previous financial

year.

– Among the new private sector banks, ICICI Bank, with 43.7% rise in gross NPA at Rs.15,095

crore against Rs.10,506 crore, contributes to the maximum followed by DCB Bank (Development

Credit Bank) at 33.8% (the increase is on a lower base).

– The gross NPAs of eight old private sector banks (listed on stock exchanges) and Tamilnad

Mercantile Bank put together shows a rise of 50% at Rs.7,755 crore against Rs.5,170 crore in

2013-14.

– Among the eight old private sector banks, Jammu & Kashmir Bank tops the list with a sharp

rise of 253% at Rs.2,764 crore against only Rs.783 crore, followed by Karur Vysya Bank with

143% rise at Rs.678 crore (Rs.279 crore) and South Indian Bank (48.5%). Tamilnad Mercantile

Bank has shown a reduction in NPA to 318.68 crore from Rs. 428 crore. Lakshmi Vilas Bank has

reduced its NPA significantly to Rs.455 crore from Rs.546 crore, followed by Federal Bank to

Rs.1,058 crore from Rs.1,087 crore.

3) The signing ceremony of the Asian Infrastructure Investment Bank (AIIB) took place at the

Great Hall of the People in Beijing on 29 June 2015. 50 founding members of AIIB, including

India, signed on the articles of AIIB that determine each country’s share and the lender’s initial

capital. What is India’s stake in AIIB? –8.52%

Explanation: The AIIB is expected to focus on infrastructure development in Asia, and unlike

the existing International Monetary Fund (IMF) and World Bank, is unlikely to restrict lending on

political considerations. The bank will have its headquarters in Beijing. India is its second largest

shareholder with a stake of 8.52% and voting share of 7.5%. The voting shares are based on the

size of each member country’s economy and not contribution to the Bank’s authorised capital.

China’s shareholding is 30.34% and it has retained 26.06% of the voting rights with veto powers

for certain key decisions. Some prominent countries, which are members of AIIB include –

Australia, Bangladesh, Brazil, Cambodia, Finland, France, Germany, Italy, Jordan, Nepal,

Netherlands, New Zealand, Norway, Pakistan, Portugal, Republic of Korea, Russia, Saudi

Arabia, Singapore, Spain, Sri Lanka, Sweden, Switzerland, and the U.K.

4) What is the name of the online forex platform launched by State Bank of India (SBI) on 19

June 2015 that enables customers to book their foreign exchange transactions online? – SBI

eforex

Explanation: eforex is the name given to the Internet-based forex (foreign exchange) platform

launched by the SBI that facilitates the customers of the bank to obtain forex rates without

having to physically visit the branch and enable customers to book their foreign exchange

transactions online. SBI eforex is also an innovative platform incorporating robust security

features and is designed to be user-friendly, fast and convenient. It is a highly flexible product

offering the facility to the customers to customise and set their own limits for deal size, daily

transaction limits etc.

5) In an unprecedented event, the Reserve Bank of India (RBI) remained opened on 1 July 2015

so as to facilitate settlement of public and market transactions. Normally, RBI remains closed for

public transactions on every year’s 1 July. Why? –  Because RBI has its annual closing of

accounts on this day

Explanation: It is worth mentioning that while April to March is the accounting year for almost

whole business fraternity in India, RBI’s accounting year is from July to June. Hence, till date

RBI used to remain close for public transactions on 1 July. But moving away from the tradition,

the RBI remained opened for public on 1 July 2015 and continued to provide services such as

RTGS/NEFT, transfer of funds and settlement of securities, etc. to the general public.

6) Greek banks went into a bank holiday from 29 June 2015 after talks between Greece and the

European Union (EU) and other creditors failed to reach any conclusion. What is the main

reason for Greek Government imposing this bank holiday? –Because the European Central

Bank (ECB) announced it would turn off emergency lending to Greek banks

Explanation: The failure to reach a deal with creditors leaves Greece set to default on 1.6 billion

euros of loans from the International Monetary Fund (IMF) that fall due on 30 June 2015. It is

worth mentioning that the (ECB) has been providing the so-called Emergency Liquidity

Assistance (ELA) to Greek banks. The ECB maintained that it will maintain its ELA to Greece at

current levels. But without an increase in the ELA, Greece will likely run out of cash before 5 July

2015. Greek Prime Minister has announced to call a referendum on 5 July on a proposed bailout

package from the EU. And since Greeks have been withdrawing money in heavy amounts from

banks, the Greek govt. announced a bank holiday effective from 29 June. A bank holiday

involves closing banks thereby limiting the ability for funds to be withdrawn. It is typically

implemented to avoid a bank run. Under the bank holiday, all Greek banks were closed and the

stock markets shut for a week, and there will be a daily 60 euro limit on cash withdrawals from

cash machines. The holiday will end on 6 July 2015.

7) Country’s largest bank State Bank of India (SBI) on 30 June 2015 announced its tie-up with

which travel company with an objective to capitalise on the business opportunities of the

booming e-commerce and m-commerce ecosystem? –MakeMyTrip.com

Explanation: The partnership between SBI and MakeMyTrip.com includes partnership with

personal banking unit for consumer facing propositions – including EMIs on purchase of holidays

& international travel, customized travel products like Forex cards and travel products that

inspire SBI customers to travel. On the other hand MakeMyTrip customers will be able to access

special offers from SBI on debit/credit cards and personal financing. SBI chairperson Arundhati

Bhattacharya said that “SBI aims at becoming a “One Stop” solution provider for the entire range

of financial needs of e-Commerce players as well as our customers in the market.”

8) Which African country is on its way to legally end its virtually worthless local currency which

has witnessed hyper-inflation as high as 500 billion per cent in the recent times? –Zimbabwe

Explanation: Zimbabwe has decided to end the local currency (Zimbabwean Dollar) by

September 2015. This process started from 15 June 2015 bank accounts with balances of up to

175 quadrillion Zimbabwean dollars to be paid just US$ 5 in the exchange. This is due to the fact

that the Zimbabwean dollar has become almost worthless. It is worth mentioning that at the

height of Zimbabwe’s economic crisis in 2008, Zimbabweans had to carry plastic bags bulging

with bank notes to buy basic goods like bread and milk. Prices were rising at least twice a day.

According to the Reserve Bank Zimbabwe (RBZ), the customers who held Zimbabwean dollar

accounts before March 2009 can approach their banks to convert their Zimbabwean dollar

balance into dollars. The process will legally end the local currency. Zimbabweans have until

September 2015 to turn in their old bank notes. Customers who still have stashes of old

Zimbabwean dollar notes can walk into any bank and get $1 for every 250 trillion they hold.

9) An annual report by the Boston Consulting Group (BCG) concluded that Asia has overtaken

Europe as the world’s second-richest region in the world. The report concluded that The Asia

Pacific, excluding Japan, held $47 trillion (£30tn) in private wealth during 2014 to overtake

Europe. Which region still remains world’s richest region according to the report? – North

America

Explanation: North America is the world’s richest region with $51 trillion, but is expected to be

surpassed by Asia in 2016. Asia is also projected to hold 34% of global wealth in 2019. Overall,

global private financial wealth grew by nearly 12% last year to $164 trillion, lifted by strong gains

in the stock and bond markets. The BCG report concluded that as in both 2012 and 2013, Asia-

Pacific (excluding Japan) remained the fastest-growing region in 2014. By contrast, growth rates

in all ‘old world’ regions remained in the single digits, led by Western Europe and North America,

and with Japan lagging somewhat behind.

26 May, 2015

1) Which noted banker of India was on 11 May 2015 appointed as the first President of the

$100-billion New Development Bank (NDB) of the BRICS countries, to be based in China’s

financial hub Shanghai? – KV Kamath

Explanation: KV Kamath is one of India’s most well-known bankers. He retired as Managing

Director and CEO of ICICI bank in April 2009, and took up his current position as non-executive

chairman. 5 BRICS countries – Brazil, Russia, India, China and South Africa – had agreed to set

up the $100 billion development bank last July, in a step toward reshaping the Western-

dominated international financial system. The name of the bank – the New Development Bank –

was suggested by Prime Minster Narendra Modi at a meeting of member countries in Fortaleza,

Brazil in November 2014. It was also agreed that the New Development Bank (NDB), which will

fund infrastructure projects in developing nations, would be based in Shanghai. It would be

headed by an Indian for a first five-year term, followed by a Brazilian and then a Russian.

2) The credit-card base in India, at the end of 2014, crossed which level of year 2010, which is

often described as the pre-crisis level in banking parlance? – 20 million

Explanation: According to the data released by the Reserve Bank of India (RBI), the number of

outstanding credit cards at the end of December was 20.29 million. This was the first time that

the total number of credit cards in India has crossed 20 million mark since February 2010. The

period after 2010 is generally assumed as the crisis period for Indian credit card industry when

number of cards swelled despite payment incapability of numerous card holders. Banking

experts believe that rise in e-commerce and improved infrastructure in the banking system,

leading to easy acceptance of cards, have helped in growth of credit cards. RBI data also

suggests it is not just the number of cards in the system but even the spends on these cards

have gone up significantly. At the end of December 2011, the spends on credit cards stood at

Rs. 8,532.6 crore, which has more than doubled to Rs. 17,437.1 crore by the end of December

2014.

3) Mangaluru-headquartered Corporation Bank recently dropped plans to take over the assets

and liabilities of a Maharashtra-based cooperative bank whose license was cancelled by the RBI

in 2013. Which bank is this? – Rupee Co-operative Bank Limited

Explanation: Rupee Co-operative Bank Limited is based in Pune (Maharashtra). It is over 100

year old and is one of India’s oldest cooperative banks. The bank operates 36 branches across

Maharashtra, and has accumulated losses of Rs. 652 crore. Due to increasing bad loans, the

RBI had suspended the license of the Rupee Co-operative Bank and had imposed severe

monetary strictures in 2013. Since the imposition of the moratorium, talks for merger with other

banks have been on. Corporation Bank had evinced interest in merging the operations of Rupee

Co-operative Bank with it and had asked for various reports from the bank to assess its financial

health. Corporation Bank was the most serious among the prospective suitors for the bank in the

two years since it was put under a Reserve Bank of India (RBI)-appointed administrator. But now

Corporation Bank has dropped plans to acquire Rupee Co-operative Bank. The latest

development will affect over 6.30 lakh depositors of Rupee Bank, bringing upon the beleaguered

bank the spectre of going into liquidation unless another suitor or some method of reviving

bank’s interest is found.

4) Private-sector Federal Bank on 18 May 2015 forayed into credit card segment with the launch

of a co-branded credit card. It has tied up with which PSU bank for this co-branded credit card?

– SBI

Explanation: This is for the first time that Federal Bank has entered into credit card segment. In

the first year, the bank aims to issue as many as 1.5 lakh credit cards to its customers. Initially,

two variants-Platinum and Gold’ N More-will be issued under the Visa platform for a specified

fee. Federal Bank is among the largest Indian private sector banks and is headquartered in

Aluva, Koch (Kerala). It had over 1200 branches and over 1400 ATMs all over India at the end of

October 2014.

5) From May 2015 National Payments Corporation of India (NPCI) has reduced the switching

fee it charges banks for processing inter-bank ATM transactions by five paise. What is the new

switching fee after this reduction? – 45 paise per transaction

Explanation: Till now NPCI’s switching fee for processing inter-bank ATM transactions was 50

paise per transaction, which stood since four years when NPCI had cut the switching fee to 50

paise from Rs. 1 through its National Financial Switch in 2011. The reduction in switching fee

came on the back of ATM transaction volumes rising to about 27 crore a month from eight crore

five years back. Currently, each time a customer of a particular bank withdraws cash at the ATM

of another bank, the former bank has to pay the later a transaction fee of Rs. 20. Further, the

first bank has to pay NPCI a switching fee of Rs. 0.45.

6) The Finance Ministry on 19 May 2015 put up draft of the ambitious Gold Monetisation

Scheme which aims to bring out around 20,000 tonnes of gold lying idle with households. Based

on the views of the public and stakeholders, the new scheme will be finalised and made

operational. What will be the main benefit of this scheme? –The new scheme will allow the

depositors of gold to earn interest in their metal accounts and the jewellers to obtain

loans in their metal account

Explanation: The new Gold Monetisation Scheme (GMS) was announced in the Union Budget

2015-16 with the aim of replacing both the present Gold Deposit and Gold Metal Loan Schemes.

The new scheme will allow the depositors of gold to earn interest in their metal accounts and the

jewellers to obtain loans in their metal account. Banks/other dealers would also be able to

monetise this gold. The minimum quantity of gold that a customer can bring in proposed to be

set at 30 grams, so that even small depositors are encouraged. Gold can be in any form (bullion

or jewellery) and the scheme will give interest as well as tax benefits. The depositors will have

the option to take cash or physical gold at the time of maturity. Minimum tenure of such account

will be one year with an option of rolling over in multiples of one year. Earlier, one Gold Deposit

scheme was introduced in 1999 with an aim to mobilise the idle gold in the country and put it into

productive use. However, it has not been very successful and less than 10 tonnes of gold has

been collected.

7) What was the fiscal deficit (estimated) for 2014-15 as announced by the Union Finance

Ministry on 17 May 2015? – 4% of the GDP

Explanation: The Union Finance Ministry announced that it was able to contain the fiscal deficit

for 2014-15 at 4% of GDP against 4.1% set to be achieved in the Union Budget. Similarly the

revenue deficit was estimated at 2.8% of the as against the revised estimate of 2.9% of GDP,

marking a sharp improvement over 3.2% for 2013-14. The Narendra Modi-led NDA government

had adopted the fiscal deficit target set by the UPA government in its interim budget for 2014-15

even as it pointed out that it would be a ‘challenge’ to meet the target. The government has

budgeted a fiscal deficit of 3.9% of GDP in the current fiscal (2015-16). Fiscal deficit is the gap

between the government’s expenditure and revenue for a stipulated period. On the other hand

revenue deficit refers to the shortfall in total government revenue realization from the targeted

figure.

8) The Companies (Amendment) Bill, 2014 was passed by the Rajya Sabha on 13 May. How

many amendments in total were affected in the Companies Act of 2013 through this amendment

bill? – Sixteen

Explanation: The Lok Sabha had passed the Companies (Amendment) Bill, 2014, in December

last year and with the bill being passed by the Rajya Sabha, a total of sixteen amendments were

made to the Companies Act of 2013. The amendments to the Companies Act, 2013, which came

into effect from 1 April 2015, are designed to address some issues raised by stakeholders. The

amendments include winding up of companies, board resolutions, bail provisions and utilisation

of unclaimed dividends, protecting confidentiality of board resolutions, the provision of auditors

being required to report suspected frauds, etc.

9) In a setback to the Narendra Modi govt., which global financial entity on 13 May 2015

downgraded India to “underweight” category, which was the first major downgrade for the India

in the past one year? – HSBC

Explanation: Global brokerage house HSBC downgraded India by changing its stance on the

country to “underweight”. In doing so it cited projections for weak monsoon, muted corporate

earnings, and odds against further rate cuts. It also said India has become the second most

expensive and one of the most over-owned markets in Asia, after a strong rally on the back of

reform optimism generated by the Modi government over the past one year. The downgrade

came at a time when Indian markets are already under acute pressure, primarily because of

foreign investors turning heavy sellers on concerns related to the controversial MAT levy and

delay in the ambitious indirect tax (GST) and land reforms.

10) A new set of insider trading norms came into effect from 15 May 2015 with the aim to tackle

insider trading menace in Indian capital markets. The Securities and Exchange Board of India

(SEBI) had imposed the old regulations on insider trading in which year? – 1992

Explanation: Indian capital markets were run by over two decade old insider trading norms that

were imposed by the SEBI in 1992. It is worth mentioning that the SEBI had notified the new

regulations (Prohibition of Insider Trading Regulations, 2015) on insider trading in January 2015.

These norms came into force from 15 May 2015. The new norms, which revamped the 1992

norms, are also expected to ensure that genuine trades are not impacted. The tightening of

norms assumes significance in the wake of SEBI coming across cases of insider trading not just

at small companies but at big corporates as well. Under the new framework, the definition of

‘Insider’ has been expanded to include persons connected on the basis of being in any

contractual, fiduciary or employment relationship that allows such people access to unpublished

price sensitive information (UPSI). The broader definition of ‘insider’ will also bring into its ambit

persons who may not seemingly occupy any position in a company, but are in regular touch with

the company and its officers who are involved in the operations.

09 May, 2015

1) The Reserve Bank of India (RBI) on 7 May 2015 put in place a new framework for banks to

check loan frauds. Under this framework early warning signals will be integrated at banks to give

quick information about loan frauds being committed. A new concept has been introduced in the

current framework as an important step in fraud risk control. What is this new concept? – Red

Flagged Account (RFA)

Explanation: The concept of a Red Flagged Account (RFA) is being introduced in the current

framework as an important step in fraud risk control. An RFA is one where a suspicion of

fraudulent activity is thrown up by the presence of one or more early warning signals (EWS).

These signals in a loan account should immediately put the bank on alert regarding a weakness

or wrong doing which may ultimately turn out to be fraudulent. No restructuring or grant of

additional facilities may be made in the case of RFA or fraud accounts.

2) Which public sector bank launched “Rupay Platinum Debit Card” on 20 April 2015 by tying up

with National Payments Corporation of India (NPCI)? – IDBI Bank

Explanation: The “Rupay Platinum Debit Card” fulfils the vision of the RBI of offering a

domestic, open-loop, multilateral payment system to all banks and financial institutions in India.

All transactions under this card scheme will be processed within the country and will be in

compliance with the regulatory requirement for debit cards and the PIN has been made

mandatory for performing any kind of transactions. This ensures a higher level of security to the

customers. The card enables cost-effective, fast and secure access to large number of ATMs,

POS terminals, e-commerce websites and participating merchant-establishments across the

country.

3) ICICI Bank on 20 April 2015 launched a new payment service called ‘Tap-n-Pay’ which

enables customers make over-the-counter payments without using cash. This first-of-its-kind

payment service was launched in collaboration with which IT company? – Tech Mahindra

Explanation: ICICI Bank’s ‘Tap-n-Pay’ payment service is based on the near-field

communications (NFC) technology. It can be used for merchant payments by merely tapping a

NFC-enabled mobile phone or a tag on the counter. One important feature of this service is that

it is a close-end one, only for a close group of customers, like canteen payments at the work

place, and not universal like a debit or credit card. Any person having any bank account, and not

limited to ICICI customers, can avail the service. For making payments, the user will have to

bring the NFC tag or the mobile phone near a device at the merchant’s facility and the amount

will automatically get debited from the prepaid account, without keying-in any code.

4) According to a latest report of the World Bank, what percentage of India’s bank accounts

were lying dormant in 2014? – 43%

Explanation: The World Bank Global Findex for 2014 stated that 43% of adults with bank

accounts made no deposits or withdrawals in the past year. It also mentioned that 230 million

(people) with accounts paid utility bills and school fees in cash. This meant that significantly

higher bank accounts were not being utilized to undertake cashless transactions. It is worth

mentioning that nearly every Indian household now has access to a bank account, thanks to a

renewed push to financial inclusion under the government’s Pradhan Mantri Jan Dhan Yojana

(PMJDY).

5) What is the rate of interest for General Provident Fund (GPF) and other related schemes that

has been retained for 2015-16 as notified by the Finance Ministry on 21 April 2015? – 8.7%

Explanation: The 8.7% rate of interest will be effective from 1 April 2015 and will apply on

Provident Funds of central government employees, railways and defence forces. The interest

rate for GPF is in line with the interest rate fixed for Public Provident Fund (PPF) at 8.7% for

2015-16. The Government had, however, raised the interest rates for other small saving

schemes. The interest rate for senior citizens savings scheme was hiked from 9.2% to 9.3% and

for Sukanya Samriddhi Account (SSA), the special deposit scheme for girl child, the interest rate

has been hiked from 9.1% to 9.2%, respectively. The interest earning for Kisan Vikas Patra

(KVP) has been retained at 8.7%.

6) The Central Board of Direct Taxes (CBDT), the apex policy making body of the Income Tax

department, notified the new Income Tax Return (ITR) Forms on 17 April 2015. However, seeing

the furious backlash against the proposal to seek plethora of details in these forms, the govt. on

18 April decided to put them on hold. What was the additional information sought in these new

forms that was apparently criticized by various quarters? – Apart from the usual information,

the new forms sought details of all bank accounts held, foreign assets, beneficiaries,

foreign travel, expenses incurred and detailed break-up of capital gains

Explanation: With these changes, this was the fifth revamp of the income tax forms in the past

five years. The new forms (ITR-1 and ITR-2) were supposed to be used to file returns from July

2015 for the assessment year 2015-16. They sought enhanced disclosure of foreign assets –

financial and physical -income generated through foreign assets, and the beneficiaries and

beneficial owners of these assets. Govt. expected that higher disclosure of domestic assets will

help check undisclosed domestic (benami) assets, which will form a part of the benami property

Bill to be introduced by the government. The new forms required an assessee also to furnish the

number of bank accounts held by the individual “at any time (including opened/closed) during

the previous year” with the last balance in his or her account on March 31 of the just concluded

fiscal year. Another controversial disclosure sought was whether one has travelled abroad, as

well as the expenses incurred during the travel. It was required to disclose whether the

expenses incurred during foreign travel were from a personal account or billed to the company,

while on an official trip. However, taxpayers were worried about the extra effort needed to fill in

the details and experts believed that it would add to paperwork and harassment. Seeing the

backlash, the govt. decided to put the new forms on hold.

7) What was the annual trade deficit for India for year 2014-15, the figures for which were

released by the govt. on 17 April 2015? – $137 billion

Explanation: The annual trade deficit for India for fiscal year 2014-15 increased by $1.2 billion

to touch $137 billion. The figure stood at $135.8 billion during 2013-14. During 2014-15, India’s

merchandise exports declined 1.2% to $310.5 billion, while imports were down 0.6%, at $447.6

billion. On the other hand, India’s trade deficit in March 2015 was the highest in four months, at

$11.79 billion. These figures have underscored risks for growth prospects in Indian economy

with continuous fall in exports. As far as steep decline in imports is concerned it was mainly due

to a plunge in global prices of crude oil, by nearly half since last June.

8) In an important step the Union Govt. made it easier to incorporate a new business from 1 May

2015. Under this initiative, entrepreneurs keen on setting up new enterprises will be able to

incorporate their entities by filing just one form as against eight as was the practice till now.

Which new form is this? – INC-29

Explanation: This initiative is part of the government’s drive to improve India’s ranking on the

globally tracked parameter of ease of doing business. It is worth mentioning that Prime Minister

Narendra Modi has made it a personal mission to improve India’s scores on this parameter. The

government wants to reduce the time taken to register a company in India to one day. From 1

May 2015, the Ministry of Corporate Affairs made available, an integrated company

incorporation form (INC-29) that makes compliance and reporting easier and convenient for

corporates. All important procedures associated with incorporation (such as availability,

allotment of Director Identification Number (DIN), company incorporation and commencement of

business) will be facilitated through this single form. The red tape that businesses faces while

registering themselves, including at least 8 different forms for various permissions has been a

pet peeve of entrepreneurs in India.

9) According to the latest SEBI data, mutual fund (MF) managers invested a net sum of

Rs.7,618 crore in equity segment during April this year, which is the highest monthly net inflow

(equity) in more than seven years. This was the best MF equity inflow since which month?

– January 2008

Explanation: The net MF inflow of Rs. 7,618 crore recorded in April this year was the highest

net inflow in equities since January 2008, when fund managers poured in Rs. 7,703 crore. In

comparison, the MF equity inflow during April 2014 was just Rs.2,698 crore. Besides, fund

managers invested a net amount of Rs. 28,650 crore in debt markets during April 2015. Experts

have attributed this strong inflow in stock markets to positive investor sentiments, government’s

reforms agenda, improved fundamentals of the domestic economy, and increased participation

from retail investors. Fund managers have shown interest in equity markets in the past one year.

They pumped in over Rs. 40,000 crore in equity markets in 2014-15, making it their first net

inflow in six years, for an entire fiscal. The huge inflows also helped the MF industry reach

around Rs.12 lakh crore-mark in assets under management (AUM) at the end of the financial

year.

10) A noted Indian investor and mutual fund entrepreneur passed away during May 2015 after a

car accident in the United States. At the time of accident he was going to attend the annual

general meeting of Berkshire Hathaway, the company controlled by legendary investor Warren

Buffett. Who was this renowned Indian investor? – Parag Parikh

Explanation: Parag Parikh died while the car he was travelling in met with an accident in

Omaha, Nebraska. 61-year old Parikh was the founder of Parag Parikh Financial Advisory

Services (PPFAS), a mutual fund company with long term investment focus as its vision.

27 Apr, 2015

1) MUDRA Bank, an ambitious initiative to provide boost to India’s micro and small business

entities, was inaugurated by Prime Minister Narendra Modi at a programme held in New Delhi on

8 April 2015. What is the full expansion of the term MUDRA? – Micro Units Development and

Refinance Agency

Explanation: MUDRA Bank will primarily serve the financial needs of small entrepreneurs and

will also act as a regulator for ‘Micro-Finance Institutions (MFIs). It is being set up through a

statutory enactment and will be responsible for developing and refinancing through the Pradhan

Mantri MUDRA Yojana, which was also launched on this occasion. MUDRA Bank has a corpus

of Rs 20,000 crore and a credit guarantee corpus of Rs 3,000 crore. Initially it will work as part of

the Small Industries Development Bank of India (SIDBI).

2) The Reserve Bank of India (RBI) on 17 April 2015 came out with which important proposal

pertaining to term deposits? – It proposed to allow banks to offer differential interest rates

for term deposits

Explanation:  The RBI allowed banks to offer differential interest rates, based on whether their

term deposits are with or without a premature withdrawal facility. In its sixth bi-monthly monetary

policy review, in February 2015, the RBI had had decided to introduce the feature of early

withdrawal facility in a term deposit as a distinguishing feature for offering differential rates of

interest. Liquidity or ease of withdrawal, touted as the biggest advantage of bank fixed deposits

(FDs), might soon be restricted due to this proposed move. According to RBI’s proposal, all term

deposits of individuals held singly or jointly of Rs 15 lakh and below should have such a facility.

Banks have also been allowed to offer deposits without the option.

3) Which entity has become India’s newest public sector undertaking (PSU) during April 2015

after Union Govt. increased its stake to over 51% in this entity? – IFCI Limited

Explanation: IFCI was earlier known as the Industrial Finance Corporation of India and was

incorporated on 1 July 1948 as a government company. It was the first development finance

institution in the country. Till now the Union Govt. had 47.93% stake in it. Some time back the

govt. acquired IFCI’s 6 crore preference shares and taking up its stake up to 51.04%. Thus, as

per the provisions of Section 2(45) of the Companies Act, 2013 IFCI became a government

company (PSU) with effect from 7 April 2015. IFCI is at present the leading infrastructure finance

company in the country.

4) Small Industries Development Bank of India (SIDBI) completed how many years of its

operations during April 2015? – 25 years

Explanation: SIDBI is the leading financial entity engaged in the growth and development of

micro, small and medium-scale enterprises (MSME) in India. It is a non-independent financial

institution which was set up through a Parliamentary act on 2 April 1990. It was initially the

wholly-owned subsidiary of IDBI while at present Govt. of India holds 33% stake in it. It initially

started its operations as a refinance agency to banks and state level financial institutions for

their credit to small industries. But later it expanded its activities by including direct credit to the

SME through 100 branches in all major industrial clusters in India.

5) Which bank was placed at the top spot among all banking entities in mobile banking

transactions during January 2015 according to the pertaining data released by RBI on 14 April

2015? – HDFC Bank

Explanation: Private sector-based HDFC Bank maintained the lead in mobile transactions, with

Rs 4,906.86 crore worth recorded in January 2015. The bank saw a huge nine-fold growth in

mobile banking transactions during January 2015 as compared to January 2014. ICICI Bank

followed HDFC Bank with mobile banking transactions worth Rs 2,224.97 crore while SBI was

third in the list with Rs. 1,586.4 crore. HDFC Bank has seen robust growth in the internet

banking space and recent trends suggest mobile banking, a subset of internet banking, has far

outpaced the latter.

6) India continued to be the leading nation in remittances during 2014 as announced by the

World Bank on 14 April 2015. How much net remittance was received by India from its global

migrant workforce in 2014? – $70 billion

Explanation: According to World Bank’s Report on Remittance, India, China, Philippines,

Mexico and Nigeria were the top five remittance recipient countries, in terms of value of

remittances during 2014. Total remittances in 2014 reached $583 billion. This is more than

double the official development assistance (ODA) in the world. India received $ 70 billion, China

$ 64 billion, the Philippines $ 28 billion. On the other hand, United States, Saudi Arabia,

Germany, Russia and the United Arab Emirates (UAE) remained the top five migrant destination

countries.

7) The first ever International Financial Services Centre (IFSC) or Finance Special Economic

Zone (FSEZ) became operational on 10 April 2015 after it was inaugurated by Union Finance

Minister Arun Jaitley. This first-of-its-kind IFSC called Gujarat International Finance Tech-City

(GIFT City) is situated at which place of Gujarat? – Between Gandhinagar and Ahmedabad

Explanation: GIFT City is the first-of-its-kind IFSC to be established in India and has been

centrally and strategically located between Gujarat capital Gandhinagar and Ahmedabad. Its

main purpose is to provide high quality physical infrastructure (electricity, water, gas, district

cooling, roads, telecoms and broadband), so that finance and tech firms can relocate their

operations there from Mumbai, Bangalore, Gurgaon etc. where infrastructure is either

inadequate or very expensive. This project is also called a FSEZ (Finance Special Economic

Zone). This is one of the dream projects of Prime Minister Narendra Modi, when he was the

Chief Minister of Gujarat. Union Govt. expects that GIFT City will likely get back much of

the business of financial services -currency derivatives and reinsurance businesses, for instance

-that India is losing out to Singapore, Dubai and London now. During inauguration of GIFT City,

Arun Jaitley also unveiled rules and regulations for this global financial hub. The regulations are

aimed at creating a vibrant IFSC on the lines of those in Dubai and Singapore and check the

flight of trading in rupee and Indian securities to such offshore financial hubs.

8) What would be the maximum sum assured for life insurance policies sold through common

service centres (CSCs) as proposed in the draft regulations released by the Insurance

Regulatory and Development Authority of India (IRDA)? – Rs. 2 lakh

Explanation: The common service centre (CSC) platform is currently being used by citizens to

access and pay for the services offered by multiple government agencies and private sector

players. Set up under the national e-governance plan, about 150,000 CSCs are functioning

under different names in different states. The IRDA had issued guidelines for utilising the CSC

network to sell insurance products in September 2013. The IRDA has now proposed a maximum

sum assured of Rs. 2 lakh for life insurance policies sold through CSCs. However, motor

insurance would be allowed to exceed this limit.

9) Which company became the first Indian private company since the year 2000 to list overseas

as it recently made its debut on US stock exchange NASDAQ? – Videocon D2h

Explanation: Videocon D2h is a private company from the stable of Videocon Group and is

engaged in providing direct-to-home services across India. It made its debut on New York-based

NASDAQ by raising $ 325 million through issuance of American Depository Receipts (ADRs).

Thus it became the first Indian private company since the year 2000 to list overseas.

VideoconD2h also became the first sizeable Indian listing on US exchanges and the first Indian

media company to be listed at NASDAQ. With a market capitalization of around $1.15 billion, it is

now among the most valued Indian companies at NASDAQ.

10) Which leading online retail company acquired mobile transactions platform FreeCharge as

announced by the company on 8 April 2015? –Snapdeal

Explanation: Snapdeal, which is one of India’s largest online retail marketplace, acquired

FreeCharge, a mobile commerce platform where users can pay their mobile, DTH and utility

payments across most major operators. However, FreeCharge will continue to function as an

independent platform and without any changes in its shopping experience. With this acquisition,

Snapdeal can offer a wide range of products and services, including financial services, mobile

recharge and utility payments with a growing user base of over 40 million.

17 Apr, 2015

1) India Post, the postal department of Govt. of India, on 1 April 2015 closed its 135-year old

Money Order (MO) service. The Money Order service, which provided pan-India door-delivery of

funds to a payee from over 155,000 post offices, was an integral part of the department since

1880. India Post is now focusing on which 2 postal remittance services? – Electronic Money

Order (eMO) and Instant Money Order (iMO)

Explanation: The legendary MO service was the traditional money transfer service of India Post

and end of its service did evoke a sense of nostalgia for numerous Indians who grew upon being

part of this service. However, in the era of instant communications the MO service made way for

its electronic versions – eMO and iMO. Both these are much faster and simpler means to remit

money. Under eMO service money is paid at the door-step of a payee – from Rs.1 to Rs.5,000 –

within a day, along with 21 standard messages. It is booked at an authorised post office and

delivered pan-India from all delivery post offices. This can also be tracked on the India Post

website. The iMO system provides instant money order service for amounts ranging from

Rs.1,000 to Rs. 50,000. An instant, web-based system, money can be remitted by designated

iMO post offices – where an electronic version of a form is filled along with an identity proof.

2) Which entity became the first public sector undertaking (PSU) to hit the market in fiscal year

2015-16 with its disinvestment taking place on 8 April 2015? – Rural Electrification

Corporation (REC)

Explanation: Union Govt. sold 5% of its stake in REC on 8 April at Rs. 315 a share to mop up

over Rs. 1,550 crore, marking the first PSU disinvestment of the current fiscal. The price for the

offer for sale (OFS) of 4.93 crore REC shares was decided on 7 April at a meeting headed by

Finance Minister Arun Jaitley. The government has budgeted to raise Rs. 41,000 crore through

minority stake sale in 2015-16. The disinvestment department has a pipeline of companies to

sell minority stake to avoid bunching up of disinvestment towards the end of end of the fiscal.

The companies which have been lined up for disinvestment include BHEL, Dredging

Corporation, NALCO, IOC and NMDC.

3) RBI presented its first bi-monthly Monetary Policy Review on 7 April 2015 and kept all primary

rates, including the Repo Rate, unchanged. What is the estimated GDP growth rate proposed to

be achieved by RBI during fiscal year 2015-16? – 7.8%

Explanation: The RBI estimated that the Indian economy would achieve a healthy growth rate

of 7.8% during 2015-16, up from 7.5% in 2014-15. RBI has already reduced the repo rate by 50

basis points (bps) so far this year and hence restrained itself from further reduction this time. It

kept the cash reserve ratio (CRR) or the proportion of deposits banks have to keep aside with

RBI unchanged. Banks were hoping for a cut in CRR to cut interest rates. But in another

important move, the RBI asked banks to pass on the Repo Rate cut benefits to customers and

the industry.

Following are the major highlights of RBI’s First bi-monthly Monetary Policy Review for

2015-16

– Short-term lending rate (Repo) unchanged at 7.5%

– Cash Reserve Ratio (CRR) unchanged at 4%

– Statutory Liquidity Ratio unchanged at 21.5%

– Consumer Price Index (CPI)-based inflation forecasted at 5.8% by March 2016

4) Union Govt. has planned which step to promote the Kisan Vikas Patra (KVP), which was re-

launched during November 2014? – It has roped in Public Sector Banks (PSBs) to sell KVP

certificates

Explanation: There-launched Kisan Vikas Patra has failed to garner much interest and

collected just Rs 1,100 crore in 2014-15. Gross collections for KVP were as high as Rs

21,631.16 crore in 2010-11, which was the year before it was discontinued. KVP is presently

issued through Post Offices only and the Union Govt. has now decided to sell KVPs through

PSBs also. Finance minister Arun Jaitley had in November 2014 re-launched the KVP, which

was a hugely popular small saving scheme of the 1990s. On the other hand, another small

saving scheme launched last year, the Sukanya Samriddhi Account (SSA), is fast gaining

popularity with over 27 lakh accounts already opened under it.

5) The amalgamation scheme of which two private sector banks came into effect on 1 April 2015

after the Reserve Bank of India (RBI) gave its approval for their merger? –Kotak Mahindra

Bank and ING Vysya Bank

Explanation: The RBI on 31 March 2015 approved the merger of ING Vysya Bank into Kotak

Mahindra Bank. In November 2014, Kotak Mahindra Bank had announced it was acquiring

Bengalaru-headquartered ING Vysya Bank in an all-stock deal of over Rs. 15,000 crore ($2.4

billion). The merger deal was approved by the Competition Commission of India (CCI) during

February 2015. Following RBI’s approval, all the tangible and intangible assets of the two

entities were transferred to Kotak Mahindra Bank to make it the fourth largest private-sector

bank in India after ICICI Bank, HDFC Bank and Axis Bank respectively. The merged entity has

now 1,214 branches, with a wide-spread pan-India network. ING Vysya had around 10,000

employees, while Kotak Mahindra Bank has around 29,000.

6) The State Bank of India (SBI) on 31 March 2015 announced plans to divest 10% stake in its

life insurance arm SBI Life. Which foreign financial entity is the minority partner in SBI Life?

– BNP Paribas Cardif (France)

Explanation: SBI Life Insurance is a joint venture between SBI and BNP Paribas Cardif of

France. At present, SBI owns 74% of the total capital and BNP Paribas Cardif has the remaining

26% in the joint venture. There have been increased efforts to restructure the insurance sector

in the country after the Parliament in March 2015 had passed the Insurance Laws (Amendment)

Bill, 2015 which seeks to increase foreign investment in private sector companies to 49% from

the existing 26%.

7) The Union Govt. on 1 April 2015 revamped the procedure for appointment of non-official

directors (NoDs) on the Boards of public sector banks, insurance companies and financial

institutions. What the new age limit for appointment of NoDs is, as prescribed in these

guidelines? – Less than 67 years

Explanation: The revamp in the procedure for appointment of NoDs was done with a view to

professionalise the Boards of these banks and financial institutions and further provide requires

skill sets to improve the quality of deliberations on the Boards. According to the new guidelines,

the applicant for the post of NoD must less than 67 years of age and have 20 years of

prescribed professional work experience. NoDs could be appointed for maximum six years or

two terms. Apart from this, a dedicated web portal (http://financialservices.gov.in/nod) was

created where interested persons can apply online.

8) What was India’s external debt stood as on 31 December 2014 according to the data

released by the Finance Ministry on 31 March 2015? – $462 billion

Explanation: India’s external debt of $462 billion as of end-December 2014 was thus 3.5%

greater than the figure at the end of March 2014. However, India’s external debt-to-gross

domestic product (GDP) ratio stood at 23.2% as of end-December, thus showing marginal

compared with 23.7% as of end-March 2014. The country’s short-term debt fell 6.7% from

March-end 2014 to $85.6 billion as of December-end, while long-term debt rose 6.1% to $376.4

billion.

9) What was the total foreign fund inflow into India by foreign institutional investors (FIIs) during

2014-15 that was the highest annual FII investment in Indian capital markets? – Around Rs. 2.7

lakh crore

Explanation: According to the latest data available with Central Depository Services Ltd

(CDSL), the Foreign Institutional Investors (FIIs) made a net equity investment of Rs. 1.09 lakh

crore in 2014-15, and a further Rs. 1.64 lakh crore into debt markets. Thus total FII inflows

during 2014-15 stood at Rs. 2.73 lakh crore. This was the highest net inflow by FIIs since being

allowed to invest in Indian capital markets (equity and debt) over two decades ago in November

1992. The previous high was in 2012-13, when the net investments climbed to Rs. 1.68 lakh

crore.

10) The Income Tax Department on 31 March 2015 took which extreme step against big tax

defaulters? – It published their names in newspapers

Explanation: The IT Department had, till now limited itself to posting the names of some of its

biggest defaulters on its website. But the department on 31 March adopted the extreme step of

publishing the name of the defaulters in reputed newspapers. This was done so that the

common man can come forward to help the department in knowing the whereabouts of these.

The step is to enhance public awareness against these entities who are acting against law. The

newspapers carried the names of the tax defaulters and the data published was quoted to have

been published by the Principal Chief Commissioner of Income Tax (Administration). This is the

first time the department has put in public domain a list of those wilful tax defaulters who have a

tax liability of Rs. 10 crore and above.

10 Apr, 2015

1) The Securities and Exchange Board of India (SEBI) on 22 March 2015 gave what relaxation

primarily to PSU banks on non-performing assets? – It relaxed the norms for conversion of

the distressed loans of listed companies into equity by banks and financial institutions

Explanation: The SEBI on 22 March decided to adopt a fair price mechanism for conversion of

distressed loans in place of the current market pricing formula. SEBI will prescribe how the fair

value will be decided. The new rule will be applied only when banks acquire at least 51% of the

equity. Bad debts or non-performing assets of all public sector banks rose to 5.64% of advances

at the end of December 2014, which is the highest after the 5.73% recorded in 2004-05.

2) The Reserve Bank of India (RBI) on 30 March 2015 relaxed provisioning rules against bad

loans by allowing banks to set aside up to 50% of floating provisions. What was the present rule

for the same? – Till now RBI allowed up to 33% of floating provisions against bad loans

Explanation: These provisioning rules broadly refer to the specific amount that banks need to

set aside in good times above the mandatory provisioning requirement as prescribed by RBI.

Banks have started building such reserves since 2010. In February 2014, RBI had allowed to

utilise up to 33% of countercyclical provisioning buffer/floating provisions held by them as on 31

March 2013. Mounting bad loans have been a concern for the RBI and this relaxation may help

banks provide for such loans thereby reducing the hit banks may face on their profitability due to

the bad loans.

3) Indian Railways on 23 March 2015 launched its RuPay pre-paid debit card service for the

benefit of railway passengers. Passengers would be able to book railway tickets and make

online payments through this debit card launched by the IRCTC. Which PSU bank is

collaborating with the National Payment Corporation of India (NPCI) and IRCTC in this service?

– Union Bank of India (UBI)

Explanation: The RuPay pre-paid debit card of railway will be made available from the

branches of Union Bank of India (UBI) or through IRCTC for free. This card is the first of its kind

in the market where both virtual as well as physical cards are being issued to the customer in

two variants – Partial KYC with a loading limit of Rs.10,000 and full KYC with a loading limit of

Rs.50,000. The first 5 transactions per card every month done on IRCTC for purchase of

railways tickets will be FREE (no transaction charges) to the customer for the first 6 months only.

For every subsequent transaction post the free usage, customer will be charged Rs.10/- per

transaction.

4) Who was appointed as the Chairman of the Empowered Committee of State Finance

Ministers on the Goods and Services Tax (GST) as announced by the government on 25 March

2015? – K.M. Mani (Finance Minister of Kerala)

Explanation: The post of the Chairman of the Empowered Committee of State Finance

Ministers on the GST fell vacant when Abdul Rahim Rather quit following defeat of National

Conference in the Jammu and Kashmir elections. Kerala Finance Minister K.M. Mani was

appointed for this post as announced by the Finance Ministry on 25 March. The chairman of the

committee has generally been from an opposition ruled state. Mani represents the Kerala

Congress (M). His appointment could help the government garner support from the opposition

when Parliament takes up the Constitution amendment bill for GST. The GST, a much-awaited

reform to replace multiple indirect taxes with one levy, is proposed to be rolled out from April

2016.

5) Which entity became the first-ever public sector undertaking (PSU) to issue bonus debentures

as done by it on 26 March 2015? – NTPC Ltd.

Explanation: NTPC on 26 March issued bonus debentures amounting to Rs. 7725.76 crore to

Government of India by virtue of its 74.96% shareholding in NTPC. In addition to the bonus

debentures, the Government of India has also received Rs. 2060.75 crore as dividend

distribution tax on the debentures. This thus became the first-ever instance of a PSU issuing

bonus debenture issues. Under this bonus issue, NTPC issued one fully paid-up, secured

debenture of Rs. 12.50 each, for every one fully paid-up equity share of Rs. 10 each held by its

members. The issue size of the bonus debenture thus stood at Rs. 10306.83 crore which is the

biggest issue of its kind in the country and also the first ever by any PSU.

6) The SEBI on 22 March 2015 approved guidelines to govern international financial services

centres (IFSC). Which centre is expected to be India’s first such IFSC? –Gujarat International

Finance Tec-City (GIFT City)

Explanation: The GIFT City is being established near Ahmedabad in Gujarat. The new norms

for IFSCs approved by SEBI on 22 March aims to ease the setting up of stock exchanges and

capital market infrastructure in such centres. A stock exchange can be set up with Rs. 25 crore

capital, against the normal requirement of Rs. 100 crore. However, this will have to be raised to

Rs. 100 crore within three years. For a clearing corporation, the initial capital requirement will be

Rs. 50 crore, against the norm of Rs. 300 crore, which will have to be achieved in three years.

7) The Securities and Exchange Board of India (SEBI) on 22 March 2015 came up with

guidelines for which category of bonds which will help the Union Govt. in its “Smart Cities” plan?

– Municipal Bonds

Explanation: The SEBI on 22 March approved a new set of norms for listing and trading of

municipal bonds on stock exchanges. Municipal bonds, also to be known as “Muni Bonds”,

would allow authorities to raise funds including for setting up of smart cities, by raising funds

from the public and from the institutional investors. The municipal authorities, desiring of issuing

these bonds, would need to have a strong financial track record and such bonds would be listed

on the stock exchanges. In December 2014, SEBI had floated draft norms for ‘Issue and Listing

of Debt Securities by Municipality’ and had sought public comments till 30 January 2015. These

bonds products are very popular among investors in many developed nations, especially the

United States, where they have attracted investments totalling over $500 billion and are among

preferred avenues for household savings.

8) The Union Govt. on 18 March 2015 launched a Rs. 200 crore scheme to set up a network of

technology and incubation centres to accelerate entrepreneurship and promote start-ups for

innovation and entrepreneurship in agro-industry. Which entity would provide financial aid under

this scheme? – Small Industries Development Bank of India (SIDBI)

Explanation: This scheme was launched by the Micro, Small and Medium Enterprises (MSME)

Ministry. In order to ensure that credit is available for start-ups, the MSME Ministry has created a

fund of Rs. 60 crore which will be channelised through SIDBI. The scheme is designed to

provide necessary skill set for setting up business enterprises in the agro sector. The primary

focus of the scheme is to provide a platform on which multiple stakeholders can work together

and address the employment needs of rural areas. For successful commercialisation and

mentoring, a grant of Rs. 1 lakh per year for three years subject to a maximum of Rs. 3 lakh

would be given.

9) The Union Govt. during March 2015 established a fund with a corpus of Rs. 500 crore which

seeks to keep prices of perishable farm commodities under control through suitable market

interventions. What is the name of this fund? – ‘Price Stabilization Fund’ (PSF)

Explanation: The ‘Price Stabilization Fund (PSF) will be used to advance interest free loans to

state governments and central agencies to support their working capital and other expenses on

“procurement and distribution” interventions for such commodities. It has initially been proposed

for onion and potato. The fund has been set up as a follow-up of a budget announcement made

by finance minister Arun Jaitley on 28 February 2015. According to operational details of the

fund, the states will set up a “revolving fund” for adequate market interventions. The Centre and

state will contribute equally (50:50) for the revolving fund. The ratio of Centre-state contribution

to the state level corpus in respect of north-east states will be 75:25. Apart from this an eight-

member price stabilization fund management committee has been set up under the

chairmanship of additional secretary in agriculture ministry to manage the fund at the Centre and

monitor revolving funds in each state.

10) The sale of mobile phone airwaves (spectrum auction) ended on 25 March 2015 after 19

days of fierce bidding between telecom operators. What amount was raised by the Union Govt.

through this auction as announced by Union Telecommunications Minister Ravi Shankar Prasad

on 26 March 2015? – Rs. 109,874 crore

Explanation: The details pertaining to the spectrum auction were revealed after the Supreme

Court, which is hearing a host of petitions on the issue of spectrum, allowed the government on

26 March to go ahead and finalise the bids and name the winners, but take a decision only after

its order on that matter. This sale was the largest-ever spectrum auction in India. The numbers

revealed by the communications minister suggest that the latest tranch of auction has come as a

windfall for the government, surpassing the previous high of Rs. 106,200 crore that the

government had received in the 2010 auction, spread over 34 days with 183 rounds of bidding.

22 Mar, 2015

1) What was the gross non-performing assets (NPAs) of public sector banks as on December

2014 as disclosed by the Reserve Bank of India (RBI) recently? – Rs. 2,60,531 crore

Explanation: While the gross NPA of public sectors banks stood at Rs. 2,60,531 crore at the

end of December 2014, the contribution of top 30 defaulters in this amount was as high as Rs.

95,122 crore, which is more than one-third of the entire NPA. In terms of percentage it amounts

to 36.5%. As per the data made available by the RBI, the total number of NPA borrowers having

Rs. 10 crore and above at the end of September 2014 stood at 2,897 with outstanding amount

of Rs. 1,60,164 crore.

2) Indian Railways on 11 March 2015 signed a Memorandum of Understanding (MoU) that will

raise Rs. 1.5 lakh crore worth of funds to finance its infrastructure. This is the largest-ever

funding in Railways’ history. This historic MoU was signed with which financial entity? – Life

Insurance Corporation of India (LIC)

Explanation: Under this MoU, the LIC will make available to the Ministry of Railways/its entities

a financial assistance with a limit of Rs. 1,50,000 crore over the next five years for implementing

its infrastructure projects. The financial assistance will be available from the financial year 2015-

16. The railways will use the funds to augment its capacity. LIC will invest in bonds issued by

various railway entities such as Indian Railways Finance Corporation (IRFC), beginning next

fiscal. There would be a five-year moratorium in interest and loan repayment. The bonds will

have a tenor of 30 years and will be disbursed over the next five years.  In his Budget Speech,

Union Rail Minister Suresh Prabhu had announced his intention of meeting a part of the total

Plan Budget of Rs. 1,00,011 crore for the financial year 2015-16, through extra budgetary

resources, such as market borrowings by tapping low cost long term funds.

3) According to the information given by the govt. in Parliament on 11 March 2015, two public

sector undertakings (PSUs) were added to the list of sick PSUs. There were as many as 65 units

in the list of sick PSUs as on 31 March 2014. Which two PSUs are these? – Air India and

MTNL

Explanation: Air India and MTNL, once market leaders in aviation and mobile telephony sectors

respectively, were declared sick as per the criteria for a PSU to be declared as such, after they

incurred losses worth 50% or more of their average net worth during four preceding years. Govt.

also announced that it will close down 5 PSUs that include three HMT units whose brand of

watches and tractors once ruled the market. However, name of other PSUs to be closed were

not provided.

4) Which associate bank of the State Bank Group on 8 March 2015 announced a 10 basis-point

cut in the base rate to 10.15% and with thus became first major to come out with a rate cut in the

post-Budget phase? – State Bank of Travancore (SBT)

Explanation: State Bank of Travancore (SBT) announced a 10 basis-point cut in the base rate

to 10.15% effective from 16 March 2015. It became the first major bank to announce rate cut

after RBI’s second Repo rate cut of the year was announced on March. It is worth mentioning

that the SBT has sought to cut base rate at a time when even market leader and parent SBI was

mulling its option.

5) Which company recently became the private company in the Indian life insurance industry to

cross Rs. 1 lakh crore mark in Assets Under Management (AUM) as announced during March

2015? – ICICI Prudential Life Insurance Company

Explanation: ICICI Prudential Life Insurance Company had started its operations in India in

December 2000 shortly after the insurance sector in the country was opened for the private

companies. Company’s AUM recently crossed the figure of Rs. 1 lakh crore and thus became

the first private company in the Indian life insurance industry to achieve the milestone. ICICI

Prudential is now the largest private player in country’s life insurance space. The AUM for a life

insurer qualitatively symbolizes the amount of trust placed by policyholders in the company.

6) The Reserve Bank of India (RBI) on 13 March 2015 entered into a $1.5 billion currency swap

agreement with the central bank of Sri Lanka. What is the primary objective of this agreement?

– To help keep the Sri Lankan rupee stable

Explanation: Sri Lanka rupee has been under pressure since January 2015 and fallen around

1.5% so far this year despite the fact that the Sri Lankan central bank defended it with selling

dollars.

7) What was the insurance penetration in India during 2013 as informed by the government in

Parliament on 10 March 2015? – 3.9%

Explanation: The Parliament was informed that the penetration for the insurance sector as a

whole in the year 2013 was 3.9% in India, as against world average of 6.3%. Insurance

penetration, measured as the ratio of premium to Gross Domestic Product (GDP), was 3.1% of

life insurance and 0.8% for general insurance in 2013. The level of insurance penetration

depends on a large number of factors like level of economic development of the country, the

extent of the savings in financial instruments and the size and reach of the insurance sector. In

relation to BRICS countries, India’s insurance penetration was better than China and Russia but

well below South Africa and only a tad lower than Brazil. The insurance penetration of South

Africa stands at 15.4% (in 2013); China 3%; Brazil 4% and Russia 1.3%.

8) The NDA govt. led by Narendra Modi was able to pass its first major reform bill in the form of

the Insurance Laws (Amendment) Bill, 2015 when it was passed by the Rajya Sabha on 12

March 2015. The lower house (Lok Sabha) had already passed this bill. When the insurance bill

was first introduced in the Parliament? – 2008

Explanation: The bill was first introduced by the UPA govt. in 2008. It sought to raise the FDI

cap in insurance sector from 26% to 49% among several other provisions and was opposed by

the BJP then. Now with the passing of the Insurance Laws (Amendment) Bill, 2015, an earlier

ordinance issued in 2014 by the Narendra Modi government will be replaced. The legislation will

shake up India’s overcrowded life insurance sector, allowing global insurers such as Britain’s

Prudential and others to increase their Indian stakes. The passage of the bill represents a rare

victory for Modi, who was elected last May on a promise of jobs and economic growth.

9) Which company is the largest in India in terms of assets as disclosed by the recent data

compiled by the Corporate Affairs Ministry? – Reliance Industries Ltd (RIL)

Explanation: According to data compiled by the Corporate Affairs Ministry, RIL is the country’s

largest corporate with assets worth Rs. 3.68 lakh crore, followed by state-owned Indian Oil

Corporation (IOC) and mortgage lender (Housing Development Finance Corp (HDFC). At the

end of March 2014, RIL’s assets stood at Rs. 3.68 lakh crore, while that of IOC and HDFC was

at Rs. 2.52 lakh crore and Rs. 2.25 lakh crore, respectively. Other entities in the top ten are

Power Finance Corp (4), NTPC (5), Rural Electrification Corp (6), Power Grid Corp (7), LIC

Housing Finance (8), Steel Authority of India (9) and Bharat Sanchar Nigam Ltd (10). Power

Finance Corp’s assets stood at Rs. 1.94 lakh crore, NTPC (Rs. 1.80 lakh crore), Rural

Electrification Corp (Rs. 1.53 lakh crore), Power Grid Corp (1.40 lakh crore), LIC Housing

Finance (Rs. 95,777 crore), Steel Authority of India (Rs. 91,962 crore) and Bharat Sanchar

Nigam Ltd (Rs. 89,333 crore). In the list of top 10 corporates in terms of assets, RIL and HDFC

were the only two firms from the private sector. The list is based on data from 4,15,886

companies which had filed their balance sheets for the year 2013-14 till  30 November 2014.

10) Country’s jewellers have put forth its demand to the Union Govt. to scrap the mandatory

requirement of Permanent Account Number (PAN) Card during purchase of gold ornaments.

They feel that this step announced in the Union Budget of 2015-16 would be impractical to

implement and hurt the jewellery sector. What is the buying limit for PAN cards? – Above Rs. 1

lakh

Explanation: In the Union Budget 2015-16, the Finance Minister had mandated that PAN card

has to be produced for purchase of gold ornaments above Rs. 1 lakh. This provision was

announced to prevent the circulation of black money which easily gets converted into gold bars

or jewellery. The All India Gems and Jewellery Trade Federation (GJF), the national federation

of the gems & jewellery sector, feels that this move would discriminate against 70% of the rural

buyers who do not have PAN cards and do not come under the income tax net. According to

jewellers, the requirement of PAN card would result in shifting of business from law-abiding

jewellers to unscrupulous elements in the trade.

March 08 2015

1) According to information disclosed on 2 March 2015, an agreement was signed between the Centre and the Reserve Bank of India (RBI) during February 2015 that sets inflation target for the RBI. What is this target? – To bring inflation down to 6% by January 2016

Explanation: The agreement formalised a policy the RBI had been following since January 2014, which is a significant development in India’s monetary policy formulation championed by Governor Raghuram Rajan. Under this agreement the RBI will be deemed to have missed its target if consumer inflation remains above the 6% level for three consecutive quarters during 2015-16 or if it remains below 2% for three consecutive quarters during the year 2016-17. The bank will have to explain to the government the causes, and what steps it intends to take to steer inflation back within a given time if it misses the target.

2) The Reserve Bank of India (RBI) on 4 March 2015 lowered its policy repo rate by 25 basis points. This was the second cut this year on the back of easing inflation and a government commitment to fiscal discipline. What is the new Repo rate after this cut? –7.5%

Explanation: The Repo rate stood at 7.75% before this cut. It is worth mentioning that the RBI had lowered interest rates by 25 bps on 15 January 2015. Another important thing associated with rate cut is that both the rate cuts this year have taken place outside of the central bank’s scheduled policy review meetings.

3) What important recommendation pertaining to domestic financial institutions (DFIs) was given by the 14th Finance Commission that was tabled in the Parliament on 24 February 2015? – A dedicated panel should be constituted for DFIs

Explanation: The 14th Finance Commission stated that domestic financial institutions (DFIs), such as public sector banks have a dominant role in the financial framework of the economy. Hence it recommended that a Financial Sector Public Enterprises Committee (FSPEC) be appointed to examine and recommend parameters for appropriate future fiscal support to financial sector public enterprises. This suggestion has come at a time when these banks need around Rs. 2.84 lakh crore additional capital to meet the BASEL-III requirement. These requirements are critical to make banks healthy with growing business. At present, there are 27 public sector banks. These are divided into – nationalised banks (21) and State Bank of India group (6).

4) Which state-owned bank of Britain has decided to close its banking operations in India as disclosed recently? – Royal Bank of Scotland (RBS)

Explanation: RBS has decided to close its banking operations in India but will be retaining the back office. The balance sheet exposure of RBS’s India business has also almost halved in calendar year 2014. At the end of December 2014, the net balance sheet exposure of the bank’s operations in India fell by £1.7 billion to £2.0 billion. Bank’s Indian banking operations mainly include investment and wholesale banking. The bank also has a wealth management business and retail presence as well. According to reports, RBS Indian banking business employs about 1,200-1,500 people.

5) International rating agency Moody’s on 3 March 2015 downgraded the ratings of some securities of which two public-sector banks? – Central Bank of India and Indian Overseas Bank

Explanation: The agency downgraded to BA1 from BAA3 its ratings on local and foreign-currency deposits of Central Bank of India and Indian Overseas Bank (IOB). Apart from this IOB’s senior unsecured debt was also downgraded to BA1 from BAA3. BAA3 rating means below investment grade ratings. This downgrade by Moody’s is being seen as possibly the start of similar rating revisions for other weaker public-sector banks by the agency. However, Central Bank of India and IOB continue to have standalone ratings of B3 and B2, respectively, from Moody’s. Moody’s action reflects its assumption of a lower level of support from the Government.6) The proposed merger of Forwards Markets Commission (FMC) with SEBI as announced in the Union Budget on 28 February 2015 is expected to sound a death knell for the so-called ‘dabba trading’. What is meant by ‘dabba trading’? – Illegal trading in commodities market

Explanation: The so-called ‘dabba trading’ in commodities market is widely prevalent across Gujarat and many other parts of the country with estimated turnover to the tune of Rs. 50,000-1,00,000 crore a day. While regulators and enforcement agencies have been trying hard to curb this menace for a long time, the lack of a unified regulatory mechanism has so far made it difficult to fully control this problem. In his Union Budget on 28 February, Finance Minister Arun Jaitley proposed to merge the commodity markets regulator FMC (Forwards Markets Commission) with the capital markets watchdog SEBI (Securities and Exchange Board of India). With this the efforts to check this menace are likely to get a major boost as SEBI already enjoys greater powers including those to conduct search and seizure, impose penalties, order arrests and take other strict actions against wrongdoers.

7) The report of the 14th Finance Commission was tabled in the Parliament by Finance Minister Arun Jaitley on 24 February 2015. How much raise in share of states in central taxes has been suggested in this report that has been accepted by the Union Govt.? –10%

Explanation: According to an Action Taken Report on the recommendations given by the Commission, the Centre has decided to devolve a much higher share of 42% of the Union’s tax receipts to the States. Compared to 2014-15, this will be a significant enhancement of 10% over the 32% during the award period of the 13th Finance Commission. As against a total devolution of Rs. 3.48 lakh crore approximately in 2014-15, the total devolution to the States in 2015-16 will be Rs. 5.26 lakh crore approximately, a year-on-year increase of Rs. 1.78 lakh crore approximately. The higher tax devolution will allow States greater autonomy in financing and designing schemes as per their needs and requirements. The Commission, headed by former RBI Governor Y.V. Reddy, gave its report to the President on 15 December 2014. The recommendations of the Finance Commission are binding upon the

Government as it is constituted by the President under a constitutional provision. These recommendations will be valid from April 1, 2015, for a period of five years.

8) Union Finance Minister Arun Jaitley presented the Economic Survey for 2015-16 in the Parliament on 27 February 2015. What the growth forecast is for fiscal year 2015-16 as disclosed in the Survey? – 8.1 to 8.5%

Explanation: With expected growth for 2015-16 to be over 8%, India is on its way to become the fastest growing major economy in the World. The Survey also disclosed that the growth of Indian economy could be launched on a double digit trajectory in the medium term. And that there is a scope for Big Bang reforms now.

9) Indian capital market regulator SEBI has recently asked individual investment advisers providing opinion on securities or public offers through TV channels or other media platforms to get them registered with it. This is being done with an aim to safeguard Indian markets from any manipulative research reports. These individuals would be registered in which capacity by SEBI for the same? – “Research Analysts”

Explanation: Last year, the Securities and Exchange Board of India (SEBI) had ushered in norms for ‘Research Analysts’. Individuals (including journalists) who offer opinion on securities and public issues through the media, are also required to obtain registration as research analysts with SEBI. Investment advice refers to advice on investments in securities or investment products in written, oral or through any other means of communication for the benefit of the client and includes financial planning. However, the members of the Institute of Company Secretaries of India (ICSI), Institute of Chartered Accountants of India (ICAI), Institute of Cost and Works Accountants of India (ICWAI) who provide investment advice to their clients’ incidental to their professional services are exempted from obtaining registration as investment advisers.

10) According to the data pertaining to mutual fund industry released on 5 March 2015 the assets under management for the mutual fund industry crossed a milestone figure for the first time during February 2015. What is this milestone figure? – Rs. 12 lakh crore

Explanation: The assets under management (AUM) that stood at Rs. 10.5 lakh crore at the end of December 2014 rose to Rs. 11.81 crore in January 2015 and then to Rs. 12.02 lakh crore at the end of February 2015 registering a growth of 14% over the past two months. This is the highest ever AUM registered by the industry that has seen AUM’s value rise by Rs. 3,76,956 crore or 46% since the beginning of this financial year. This means that domestic retail investors have returned to the mutual fund route in large numbers in the current year. The year witnessed strong participation from retail investors into domestic equities through mutual funds after the BJP-led NDA gained a clear majority in the 2014 general elections and in anticipation of reform measures promised by them.

01 Mar, 2015

1) The State Bank of India has recently launched a massive initiative to empower its customers through technology and awareness. Under this initiative special SBI centers across the length and breadth of the country have started holding interactive learning sessions and demos of the bank’s tech-channels. What is the name of these special centers? – Tech Learning Centres (TLCs)

Explanation: This initiative has been on since December 2014. Under this 385 State Bank TLCs across the length and breadth of the country have started holding interactive learning sessions and demos of the bank’s tech-channels for over ten thousand customers every month. A large number of customers are having an initial fear and hesitation to use technology for their banking needs. But through this initiative SBI seeks to remove such hesitation among them. After launching in December, 2014, more than 30,000 customers were trained in these TLCs. TLCs will spread awareness of the Bank’s various tech channels including Cash Deposit Machines, Mobile Banking apps, Net Banking and Green Remit Cards, in addition to providing guidance on how to use these channels safely and in a secure manner.

2) An important agreement pertaining to wage revision of bank employees was signed on 23 February 2015 between the Indian Banks’ Association (IBA) and bank trade unions at Mumbai which resulted in the aversion of the proposed 4-day bank strike from 25 February. What are the main points under this agreement? – 15% hike in wages and off on second and fourth Saturdays of the month

Explanation: The wage hike will be applicable to nearly 10 lakh employees in public sector banks, old generation private sector banks and some foreign banks. Though bank employees have got second and fourth Saturday off, they will have to work full day on the first and third Saturdays. The wage revision negotiations had been going on for more than two years. The agreement on the wage revision would be implemented with effect from 1 November 2012. With the settlement, the Indian Banks’ Association (IBA) was successful in averting the proposed 4-day strike proposed by the United Forum of Banking Unions (UFBU) from 25 February. The last round of negotiations between the unions and the IBA, held on 3 February 2015 had failed after the IBA offered a 13% hike compared to 12.5% offered earlier.

3) In a unique experiment State Bank of India (SBI) has recently initiated a new loan collection model that allows borrowers to pay back on a daily instalment basis. This initiative has been started primarily to keep bad loans in check. This first-of-its-kind loan product offering has been made to which entity? – Olacabs

Explanation: Olacabs is a renowned cab-hailing service company. Under the tie-up, cab owners associated with Olacabs can avail themselves of car loans from SBI on a preferential basis, with faster loan turnaround time. Since repayments will be on a daily basis, the loans could come a tad cheaper. Each time the driver makes a payment to Olacabs, a part of it will automatically go to SBI towards loan servicing, through Olacabs’ pre-paid wallet. This is a departure from the existing loan servicing model where borrowers repay by way of equated monthly instalments. Any break in the daily collection cycle will serve as an early warning signal and the bank can quickly intervene and resolve the matter, ensuring that the loan does not become non-performing. These loans will be covered under the Credit Guarantee Fund Trust for Micro and Small Enterprises. Under the cover, if a borrower fails to discharge his liabilities to the lender, the Trust makes good the loss incurred by the lender for up to 85% of the credit facility4) The Reserve Bank of India (RBI) on 18 February 2015 allowed banks to lend against gold and thus lifted the ban on the same. When was this ban imposed? – June 2013

Explanation: Apart from listing the ban on lending against gold, the RBI also allowed banks to import gold on a “consignment basis”, under which they act as intermediaries and don’t pay for the stock until a buyer has been found, which is usually quickly. On the other hand trading houses will be allowed to bring in gold with no conditions attached. Gold flows into the country have slowed despite the removal in November 2014 of the so-

called 80-20 rule that required importing agencies to re-export a fifth of total imports, as importers and customs officials waited for more clarity. Imports had dropped despite the reversal of the rule as the industry was taken aback by the sudden change in the central bank’s position and banks remained wary, fearing customs officials would hold up incoming shipments.

5) National Payments Corporation of India (NPCI), the umbrella organisation for retail payment system in India, on 18 February 2015 launched a unified platform for providing a single payment interface across all systems. What is the name of this interface that will enable all account holders to send and receive money from their smartphones with a single identifier? – Unified Payment Interface (UPI)

Explanation: The UPI will make possible paying and receiving payments as easy as swiping a phone book entry and making a call on mobile phone. Anyone who has an account should be able to send and receive money from their mobile phone with just an identifier without having any other bank/account details. It is designed to enable all account holders to send and receive money from their smartphones with a single identifier – Aadhaar number, mobile number, virtual payments address – without entering any bank account information. UPI will make payments possible only by providing an address with others without having ever provided account details or credentials on 3rd party applications or websites.

6) Which private bank on 16 February 2015 announced plans to launch India’s first Green Infrastructure Bond worth Rs. 500 crore, proceeds from which will be deployed to fund renewable energy and energy efficiency projects? – Yes Bank

Explanation: This proposed Green Infrastructure Bond is claimed to be the first such issue in the country and the money will be used to fund solar power, wind power, biomass, and small hydel projects. The bond will have a tenor of ten years. Yes Bank also claimed that globally, a sum of US$ 35 billion was raised by issuing such green bonds in 2014, while the market in the country is either non-existent or nascent. Yes Bank at present is the 4th largest private bank in the country.

7) The Reserve Bank of India (RBI) on 13 February announced it would soon put in circulation currency notes with the denomination of Re 1. When printing of Re. 1 notes was discontinued by the govt. due to higher printing costs? – November 1994

Explanation: RBI announced that Re.1 currency notes are legal tender as provided in The Coinage Act, 2011 and the existing currency notes in this denomination in circulation will also continue to be legal tender. The RBI has been gradually withdrawing lower denomination notes as the perceived benefit is lesser than the cost of printing such notes. However, the move to re-start printing of Re.1 note is being seen as a symbolic gesture as Re 1 coins are expected to be more in circulation. While the RBI has the authority to issue bank notes of denominational values of Rs. 2, Rs. 5, Rs. 10, Rs. 20, Rs. 50, Rs. 100, Rs. 500, Rs. 1,000, Rs. 5,000 and Rs. 10,000, the one rupee note is printed and issued by the central government.

8) The State Bank of India (SBI) made how much commitment for clean energy generation (renewable energy) as announced by it at Re-Invest India 2015 on 15 February 2015? – Rs. 75,000 crore

Explanation: SBI committed Rs. 75,000 crore for generation of 15,000 MW of renewable energy in the next 5 years. SBI has a loan exposure of Rs. 1.78 lakh crore in the power sector including conventional energy and discoms. Of this the bank’s outstanding loan towards clean energy is to the tune of Rs. 7,500 crore.

9) The Union Govt. on 20 February 2015 notified rules to implement the decision to increase foreign direct investment limit in the insurance sector to 49%. What is the name of the bill associated with this subject that will be presented in the Budget session of Parliament? – The Indian Insurance Companies (Foreign Investment) Rules 2015

Explanation: The Indian Insurance Companies (Foreign Investment) Rules Bill allows up to 26% foreign investment through the automatic route, while foreign partners can increase their stake beyond that limit up to 49% with the approval of the Foreign Investment Promotion Board (FIPB). The rules will also apply to insurance brokers, third party administrators, surveyors and loss assessors, and other insurance intermediaries appointed under the provisions of the IRDA Act, 1999. Any increase of foreign investment of an Indian insurance company will have to be in accordance with the pricing guidelines specified by the RBI under the FEMA rules. With this bill, Union Govt. seeks to replace The Insurance Laws (Amendment) Ordinance, 2014, that was promulgated by the President of India, in December 2014.

10) The Corporate Affairs Ministry during February 2015 removed curbs on acquisition of shares and other securities that was imposed on banking, insurance and housing finance companies. This exemption was earlier available to these entities. The said curb was imposed under which act? – The new company law (Companies Act, 2013)

Explanation: The new company law had placed restrictions on banking, insurance and housing finance companies as far as acquisition of securities and shares was concerned. Prior to this these entities were required to follow compliance requirements including shareholders’ approval in some cases whenever they acquired shares or any other securities. Now the Corporate Affairs Ministry has placed banking companies, private insurers and housing finance companies in the same footing as was the situation under the erstwhile Companies Act 1956. The latest corporate affairs ministry move is being counted as step towards ease of doing business in India. However, the latest relief will not cover most public sector banks as they are governed under a separate law and restrictions on investments under the company law did not apply to them. Currently, there are only two banks – IDBI Bank and Bharatiya Mahila Bank (BMB) – that are registered as companies under the new company law.

22 Feb, 2015

1) The Union Govt. on 20 February 2015 notified rules to implement the decision to increase foreign direct investment limit in the insurance sector to 49%. What is the name of the bill associated with this subject that will be presented in the Budget session of Parliament? – The Indian Insurance Companies (Foreign Investment) Rules 2015

Explanation: The Indian Insurance Companies (Foreign Investment) Rules Bill allows up to 26% foreign investment through the automatic route, while foreign partners can increase their stake beyond that limit up to 49% with the approval of the Foreign Investment Promotion Board (FIPB). The rules will also apply to insurance brokers, third party administrators, surveyors and loss assessors, and other insurance intermediaries appointed under the

provisions of the IRDA Act, 1999. Any increase of foreign investment of an Indian insurance company will have to be in accordance with the pricing guidelines specified by the RBI under the FEMA rules. With this bill, Union Govt. seeks to replace The Insurance Laws (Amendment) Ordinance, 2014, that was promulgated by the President of India, in December 2014.

2) The State Bank of India has recently launched a massive initiative to empower its customers through technology and awareness. Under this initiative special SBI centers across the length and breadth of the country have started holding interactive learning sessions and demos of the bank’s tech-channels. What is the name of these special centers? – Tech Learning Centres (TLCs)

Explanation: This initiative has been on since December 2014. Under this 385 State Bank TLCs across the length and breadth of the country have started holding interactive learning sessions and demos of the bank’s tech-channels for over ten thousand customers every month. A large number of customers are having an initial fear and hesitation to use technology for their banking needs. But through this initiative SBI seeks to remove such hesitation among them. After launching in December, 2014, more than 30,000 customers were trained in these TLCs. TLCs will spread awareness of the Bank’s various tech channels including Cash Deposit Machines, Mobile Banking apps, Net Banking and Green Remit Cards, in addition to providing guidance on how to use these channels safely and in a secure manner.

3) The “Halwa Ceremony”, which was held on 19 February 2015, is associated with which keenly awaited event of the Union Govt.? – “Union Budget”

Explanation: The process of printing documents for the Budget starts with the ritual called “Halwa Ceremony”. It has been a tradition which has continued for long. As part of the ritual, halwa is prepared in a big-kadhai (cauldron vessel) and served to the staff of the Ministry. The significance of the sweet dish (Halwa) is that after it is served, a large number of officials and support staff, who are directly associated with budget making and printing process, are required to stay in the Ministry and remain cut off from their families till the presentation of the budget by the Minister. They are not even allowed to contact their near and dear ones through phone or any other form of communication, like email. Only very senior officials in the Finance Ministry are permitted to go home. The “Halwa Ceremony” was held in North Block and was attended by Finance Minister Arun Jaitley.

4) National Payments Corporation of India (NPCI), the umbrella organisation for retail payment system in India, on 18 February 2015 launched a unified platform for providing a single payment interface across all systems. What is the name of this interface that will enable all account holders to send and receive money from their smartphones with a single identifier? – Unified Payment Interface (UPI)

Explanation: The UPI will make possible paying and receiving payments as easy as swiping a phone book entry and making a call on mobile phone. Anyone who has an account should be able to send and receive money from their mobile phone with just an identifier without having any other bank/account details. It is designed to enable all account holders to send and receive money from their smartphones with a single identifier – Aadhaar number, mobile number, virtual payments address – without entering any bank account information. UPI will make payments possible only by providing an address with others without having ever provided account details or credentials on 3rd party applications or websites.

5) Which private bank on 16 February 2015 announced plans to launch India’s first Green Infrastructure Bond worth Rs. 500 crore, proceeds from which will be deployed to fund renewable energy and energy efficiency projects? – Yes Bank

Explanation: This proposed Green Infrastructure Bond is claimed to be the first such issue in the country and the money will be used to fund solar power, wind power, biomass, and small hydel projects. The bond will have a tenor of ten years. Yes Bank also claimed that globally, a sum of US$ 35 billion was raised by issuing such green bonds in 2014, while the market in the country is either non-existent or nascent. Yes Bank at present is the 4th largest private bank in the country.

6) The State Bank of India (SBI) made how much commitment for clean energy generation (renewable energy) as announced by it at Re-Invest India 2015 on 15 February 2015? – Rs. 75,000 crore

Explanation: SBI committed Rs. 75,000 crore for generation of 15,000 MW of renewable energy in the next 5 years. SBI has a loan exposure of Rs. 1.78 lakh crore in the power sector including conventional energy and discoms. Of this the bank’s outstanding loan towards clean energy is to the tune of Rs. 7,500 crore.

7) The Reserve Bank of India (RBI) on 13 February announced it would soon put in circulation currency notes with the denomination of Re 1. When printing of Re. 1 notes was discontinued by the govt. due to higher printing costs? – November 1994

Explanation: RBI announced that Re.1 currency notes are legal tender as provided in The Coinage Act, 2011 and the existing currency notes in this denomination in circulation will also continue to be legal tender. The RBI has been gradually withdrawing lower denomination notes as the perceived benefit is lesser than the cost of printing such notes. However, the move to re-start printing of Re.1 note is being seen as a symbolic gesture as Re 1 coins are expected to be more in circulation. While the RBI has the authority to issue bank notes of denominational values of Rs. 2, Rs. 5, Rs. 10, Rs. 20, Rs. 50, Rs. 100, Rs. 500, Rs. 1,000, Rs. 5,000 and Rs. 10,000, the one rupee note is printed and issued by the central government.

8) The Corporate Affairs Ministry during February 2015 removed curbs on acquisition of shares and other securities that was imposed on banking, insurance and housing finance companies. This exemption was earlier available to these entities. The said curb was imposed under which act? – The new company law (Companies Act, 2013)

Explanation: The new company law had placed restrictions on banking, insurance and housing finance companies as far as acquisition of securities and shares was concerned. Prior to this these entities were required to follow compliance requirements including shareholders’ approval in some cases whenever they acquired shares or any other securities. Now the Corporate Affairs Ministry has placed banking companies, private insurers and housing finance companies in the same footing as was the situation under the erstwhile Companies Act 1956. The latest corporate affairs ministry move is being counted as step towards ease of doing business in India. However, the latest relief will not cover most public sector banks as they are governed under a separate law and restrictions on investments under the company law did not apply to them. Currently, there are only two banks – IDBI Bank and Bharatiya Mahila Bank (BMB) – that are registered as companies under the new company law.

9) The Reserve Bank of India (RBI) on 18 February 2015 allowed banks to lend against gold and thus lifted the ban on the same. When was this ban imposed? – June 2013

Explanation: Apart from listing the ban on lending against gold, the RBI also allowed banks to import gold on a “consignment basis”, under which they act as intermediaries and don’t pay for the stock until a buyer has been found, which is usually quickly. On the other hand trading houses will be allowed to bring in gold with no conditions attached. Gold flows into the country have slowed despite the removal in November 2014 of the so-called 80-20 rule that required importing agencies to re-export a fifth of total imports, as importers and customs officials waited for more clarity. Imports had dropped despite the reversal of the rule as the industry was taken aback by the sudden change in the central bank’s position and banks remained wary, fearing customs officials would hold up incoming shipments.

10) What is the period of loan extension that was given to Greek government by the finance ministers of euro zone on 20 February 2015 to avert a potential crash crunch in March 2015? – 4 months

Explanation: The agreement, clinched after the third ministerial meeting of euro zone finance ministers held at Brussels offers a breathing space for the new Greek government to try to negotiate longer-term debt relief with its official creditors. This loan extension ends weeks of uncertainty since the election of a leftist-led government in Greece which pledged to reverse austerity measures that were imposed on Greek as conditions of the bail-out package given to it in 2010.

16 FEB, 2015

1) The Finance Ministry on 7 February 2015 announced that it will soon provide capital infusion worth Rs. 6,990 crore to nine public sector banks. This infusion will be made from the Rs. 11,200-crore provided for in this year’s budget for capitalisation of banks. Which bank would get highest capital infusion? – State Bank of India (SBI)

Explanation: SBI would get capital infusion amounting to Rs. 2,970 crore, followed by Bank of Baroda (Rs. 1,260 crore) and Punjab National Bank (Rs. 870 crore). For this year’s allocation, a new criterion has been adopted by the Government. Only banks that are more efficient would be rewarded with extra capital for their equity so that they can further strengthen their position. The methodology for arriving at the amount to be infused into these banks has been based on efficiency parameters. First, the weighted average of return on assets (ROA) for all public sector banks, for the last three years put together, was arrived at and all those who were above the average were considered. The second parameter that has been used is return on equity (ROE) for these banks for the last financial year.

Break-up of Capital Infusion

Name of Bank Amount (in Rs. Crore)

SBI 2,970

Bank of Baroda 1,260

Punjab National Bank 870

Canara Bank 570

Syndicate Bank 460

Allahabad Bank 320

Indian Bank 280

Dena Bank 140

Andhra Bank 120

2) The Reserve Bank of India on 3 February 2015 constituted a committee to evaluate applications received for the proposed small finance banks. Who is heading this committee? – Usha Thorat, former Deputy Governor of RBI

Explanation: The purpose of the small banks will be to provide a whole suite of basic banking products such as deposits and supply of credit, but in a limited area of operation. The objective for these Small Banks is to increase financial inclusion by provision of savings vehicles to under-served and unserved sections of the population, supply of credit to small farmers, micro and small industries, and other unorganised sector entities through high technology-low cost operations. RBI had received 72 applications for small finance banks till 2 February 2015. However, the number could change as this excludes applications that might have been received at other venues. Those who applied to the Reserve Bank of India (RBI) for small bank licences included Nirmal Jain-led IIFL Holdings Ltd, UAE Exchange, Kerala-based ESAF Microfinance, Punjab-based Capital Area Local Bank and Andhra Pradesh-based Coastal local Area Bank.

3) The Reserve Bank of India on 3 February 2015 constituted a committee to evaluate applications received for payments banks. Who is heading this committee? – Dr. Nachiket Mor, Director, Central Board, RBI

Explanation: Objective of payments banks is to increase financial inclusion by providing small savings accounts, payment/remittance services to migrant labour, low income households, small businesses, other unorganised sector entities and other users by enabling high volume-low value transactions in deposits and payments/remittance services in a secured technology-driven environment. Those who can promote a payments bank can be a non-bank PPIs, NBFCs, corporate’s, mobile telephone companies, super market chains, real sector cooperatives companies and public sector entities. Even banks can take equity in Payments Banks. RBI received 41 applications for payments banks till 2 February 2015 which was the deadline for the same. Prominent applicants for payments bank include Reliance Industries Limited (RIL), Aditya Birla Nuvo Ltd., Future Group, UAE Exchange India, Bharti Airtel, Vodafone, IIFL, PayTM and Oxigen.

4) Finance Ministry released latest data for the Pradhan Mantri Jan Dhan Yojana (PMJDY) on 11 February 2015. According to it, a little more than 127 million new bank accounts have been opened since launch of the scheme on 28 August 2014. What is an important achievement associated with this figure? – The number of people added to the country’s banking system in the past five months is higher than that in the period from 2001 to 2011

Explanation: With opening of around 127 million bank accounts in last five months, the total number of bank accounts in the country stand at 210.5 million (21 crore). According to census data, only 36% of Indian households

had access to banking services in 2001. This increased to 59% in 2011. If the latest figures for the PMJDY are anything to go by, all but 23,000 Indian households have already been made part of the banking system. However, even as the government continues to add accounts, the speed of linking the accounts with Aadhar numbers has not been as fast. Until 4 February 2015, seeding of Aadhar numbers, to ease the process of direct transfer of cash subsidies in beneficiaries’ bank accounts, had been done for 35% of all new bank accounts.

5) The RBI on 2 February 2015 directed banks to prominently display the name of unclaimed bank account holders on the websites and provide them with a “Find” option to locate the information easily. What are the present provisions for such unclaimed and inoperative bank accounts? – Banks are required to pay back the amounts laying in inoperative accounts for ten years or more, along with interest

Explanation: The banks can later lodge a claim for refund from the Depositor Education and Awareness Fund for an equivalent amount paid to the customer/depositor. This was done in a bid to help people who have unclaimed deposits lying with banks. The banks were asked to complete the action by 31 March 2015. In its directions to the banks, the RBI cautioned against disclosing the account numbers of such holders. It said that they should give information about process of claiming the unclaimed deposits or activating the inoperative account. As per government estimates, banks had Rs 5,124 crore in unclaimed deposits lying with them as on 31 December 2013.

6) Which private bank on 10 February 2015 launched first-of-its-kind digital banking service called “Pockets”, which enables users to instantly send money to any e-mail id, mobile number, friends on Facebook and bank account? – ICICI Bank

Explanation: Under the “Pockets” service, anyone including those who are not customers of ICICI Bank, can easily download the e-wallet from Google Playstore, fund it from any bank account in the country and start transacting immediately. This wallet uses a virtual VISA card which enables the users to transact on any website or mobile application in India. The universal wallet and the savings account are the first two products to be launched as part of ICICI’s ‘Pockets’ digital bank initiative.

7) The largest share sale by a private sector entity and the second largest fund-raising by selling shares in the secondary market in India took place on 5 February 2015 when a leading private bank raised Rs. 9,880 crore. Which bank is this? – HDFC Bank

Explanation: HDFC Bank sold its shares worth Rs. 9,880 crore in the secondary market on 5 February through a mix of qualified institutional placement (QIPs) and American Depository Shares (ADRs) to domestic and overseas investors. This was the largest share sale by a private sector entity and the second largest fund-raising by selling shares in the secondary market in India after the bumper Rs. 22,500-crore issue of Coal India Limited (CIL) on 30 January 2015. HDFC Bank is the largest bank in India by market capitalization.

8) State Bank of India (SBI)’s net profit for the October to December quarter for 2014-15 stood at Rs. 2,910 crore as announced by the bank on 13 February 2015. These results were cheered by the stock and financial markets of the country. Why? – SBI’s bad loans rose only slightly and its asset quality made an improvement

Explanation: SBI’s net profit rose by around 30% as compared to corresponding quarter of 2013-14. However, the markets were happier because the bank was able to improve on its non-performing assets (NPAs) during the

quarter. Gross non-performing assets (NPA) as a percentage of total advances improved to 4.90% during the quarter from 5.73% in the year-ago period. Net NPA was 2.80% during the quarter, down from 3.24% in corresponding quarter of last fiscal. SBI is country’s largest bank and it controls nearly 25% of India’s banking business. Thus better results from SBI were cheered after poor results by many PSU banks earlier.

9) Union Govt. on 9 February 2015 came up with a new forecast of annual economic growth that makes India the fastest growing major economy in the world. This became possible as the system of measuring economic activities was changed recently. What is the new growth forecast for year ending 2014-15 according to this? – 7.4%

Explanation: The new estimate is sharply higher than the Reserve Bank of India’s (RBI) growth projection of around 5.5% under the old method as well as a revised 6.9% growth a year earlier. Under the new method, the economy grew 7.5% in the quarter ending in December 2014, outpacing China’s 7.3% growth in the latest quarter and making India the fastest growing major economy in the world. The apparent recovery is, however, in large measure due to changes both in the way authorities calculate gross domestic product (GDP) and the base year. India now measures GDP by market prices instead of factor cost, to take into account gross value addition in goods and services as well as indirect taxes. The base year has been shifted to 2011-12 from 2004-05. The reading, however, is at odds with other indicators such as industrial production and trade data, which suggest the economy is still suffering from slack.

10) Which country became the world’s top FDI destination during 2014 and thus replaced the United States from top place as disclosed by a latest report by United Nations Conference of Trade and Development (UNCTAD)? – China

Explanation: This UNCTAD report released on 29 January 2015 disclosed that during 2014 total foreign direct investments (FDI) or investment by foreign firms in China stood at $128 billion while the same for the U.S. stood at $86 billion. Hong Kong stood second in this list with FDI worth $111 billion. The U.S. was occupying the top position since 2003. Other countries among top 10 in this list include Singapore ($81 billion), Brazil ($62 billion), UK ($61 billion), Canada ($53 billion), Australia ($49 billion), the Netherlands ($42 billion) and Luxembourg ($36 billion).

08 FEB, 2015

1) The Reserve Bank of India (RBI) on 3 February 2014 released its 6th Bi-monthly Monetary Review. It decided to keep the most important Repo Rate unchanged at 7.75%. Which is the only prominent rate that was changed in this review? – Statutory Liquidity Ratio (SLR)

Explanation: The RBI reduced the statutory liquidity ratio (SLR) of scheduled commercial banks by 50 basis points from 22.0% to 21.5% of their net demand and time liabilities (NDTL) with effect from the fortnight beginning 7 February 2015. The reduction in SLR is expected to release more funds in the economy.

Following are the main highlights of RBI’s 6th Bi-Monthly Monetary Policy Review

- Repo rate unchanged at 7.75%

- Consequentially, Reverse Repo Rate remain unchanged at 6.75%

- Marginal standing facility (MSF) rate remain unchanged at 8.75%

- Cash Reserve Ratio (CRR) unchanged at 4%

- Statutory Liquidity Ratio (SLR) reduced from 22.0% to 21.5%

- Targetted inflation by January 2016 at 6%

- GDP growth estimated at 5.5% for 2014-15 and 6.5% for 2015-16 (under old base year)

- Foreign exchange remittance limit raised to $2,50,000 per person annually

2) The RBI on 3 February 2015 increased the amount Indians can remit in foreign exchange without end-use restrictions to $ 2,50,000 per year per person. What was this limit at present? – $ 1,25,000 per year per person

Explanation: The RBI had reduced the eligibility limit for foreign exchange remittances under the Liberalised Remittance Scheme (LRS) to USD 75,000 in 2013 as the rupee came under strong pressure. With stability in the foreign exchange market, this limit was enhanced to USD 125,000 in June 2014 without end-use restrictions, except for prohibited foreign exchange transactions such as margin trading, lotteries and the like.

3) The RBI deadline for applying for the payments banks ended on 2 February 2015. Which companies/groups are the prominent bidders for the payments banks which will offer services such as remittances and deposits? – Reliance Industries Limited (RIL), Aditya Birla Nuvo Ltd., Future Group, UAE Exchange India, Bharti Airtel, Vodafone, IIFL, PayTM and Oxigen

Explanation: Payments banks are proposed to put basic banking within the reach of hundreds of millions. In a country like India where nearly half the population does not have access to formal banking payments banks are expected to play the role of the ‘last-mile bank’. Payments banks will be allowed to not only accept cash, but also pay it out, boosting their appeal for low-income savers. They will, however, not be allowed to provide loans. Their precursors, Pre-paid Payment Instrument (PPI) providers, were not allowed to pay out cash. Payments banks could cut the use of cash in an economy where nine out of 10 transactions are still paid in notes and coins and kick-start the use of low-cost payment forms like mobile money that have been used by only one in every 300 Indians.

4) Reliance Industries Limited (RIL) has applied for a payments bank licence, the application deadline for which ended on 2 February 2015. It tied up with which bank for seeking this licence? – State Bank of India (SBI)

Explanation: RIL has entered into a partnership venture with SBI for seeking payments bank licence. Under this, RIL will be the promoter of the payments bank entity while SBI will be joint venture partner with equity investment of up to 30%. The partnership is in accordance with the guidelines for payments bank issued by RBI. The proposed payments bank by RIL-SBI combine will leverage SBI’s nationwide distribution network and risk management capabilities along with the substantial investments made by RIL in its retail and telecom businesses.

5) The Reserve Bank of India (RBI) on 30 January 2015 constituted a 7-member committee on urban cooperative banks (UCBs). The committee will primarily re-examine and recommend appropriate set of businesses, size, conversion and licensing terms for the UCBs. Who is heading this committee? – R. Gandhi (Deputy Governor, RBI)

Explanation: The committee will examine whether it is time to give permits to new UCBs as per the recommendations of the expert committee on licensing of new UCBs set up under the chairmanship of Y.H. Malegam. The committee will determine the modalities of implementing a suggestion made by the Malegam committee regarding 50% in value of deposits should be held by voting members to assure that confidence regarding proper management is generated among investors. Other important members of the committee are M.V. Tanksale from Indian Banks’ Association (IBA), Suma Varma, principal chief general manager, department of cooperative banking regulation, RBI and Joseph Raj, joint legal advisor from the legal department at RBI.

6) Union Govt. sold its 10% stake in Coal India Limited (CIL) on 30 January 2015. This stake sale was oversubscribed 1.05 times and fetched about Rs. 22,600 crore. This was the biggest ever share sale by any private or public sector company in India. It exceeded the previous record of over Rs. 15,000 crore by CIL itself. That record-making stake sale was done by CIL in which year? – 2010

Explanation: The government had offered to sell 31.58 crore shares, or 5% stake, in CIL through a public offer, with an option to sell another 5%. At the floor price of Rs. 358 apiece, the public offering is estimated to fetch Rs. 22,600 crore to the exchequer. This will make up for around half of the budgeted disinvestment target that was targetted by the Union Govt. for 2014-15. Prior to the Coal India share sale, the government had managed to raise just Rs 1,715 crore through selling stakes in steel maker SAIL. Till date, the highest-ever divestment collection in a year was Rs 23,956 crore in 2012-13 and that record has been broken now.

7) India on 30 January 2015 revised its economic growth (GDP) for fiscal year 2013-14 from the previously reported 4.7% to 6.9%. It also revised its GDP for 2012-13 from 4.5% to 5.1%. What is the reason for this upward revision? – A change in the formula to measure the economy by the govt. and change in base year

Explanation: The new measurement of gross domestic product (GDP) includes under-represented and informal economic sectors as well as new items such as smart phones and LED television sets. This move will make it easier for the government to meet fiscal deficit goals. A change in base year has been implemented and the new base year is 2011-12 instead of 2004-05. The base year is altered every five years and the change in measure of GDP data is to bring it in line with global standards.

8) India Ratings (Ind-Ra), a leading rating agency of the county, on 28 January 2015 stated that the revision in base year of India’s national accounts will increase the size of the economy to Rs. 111.7 trillion in the financial year 2014-15. With a view to present a more realistic picture of the economy, the government is coming out with a new series of Consumer Price Index (CPI) with a new base year. Which new base year is being used for the same? – 2011-12

Explanation: Year 2004-05 was the base year for computing the economic growth rate till now. The base year of the national accounts is changed periodically to take into account the structural changes which take place in the economy and to depict a true picture of the economy through macro aggregates. From January 2015 the Union Government will release the data pertaining to the Gross Domestic Product (GDP) with a new base year of 2011-

12. This data will be released in February 2015. This new base year has been chosen so as to present a more realistic picture of the economy as it would include more sectors. Ind-Ra expects the size of the Indian economy to increase 6% to Rs. 111.7 trillion ($1.8 trillion) in 2014-15 from the earlier estimate with the change of base to 2011-12.

9) MMP Mobi Wallet Payment Systems Limited (MMPL), a Tata Teleservices subsidiary, launched an open loop prepaid, Visa powered, PAY Smart card on 28 January 2015. The card will provide a platform for the users to move away from traditional cash based transactions into an easy, secure and private mode of payment. MMPL launched this card in partnership with which private bank? – RBL Bank (Ratnakar Bank Limited)

Explanation: By obtaining a PAY Smart card, mRUPEE customers will be able to withdraw money from Visa licensed ATMs and also pay for goods and services at all merchants that accept Visa debit/credit cards nationally. The minimum money value the PAY Smart card would hold is 200 rupees with the maximum value being 1 lakh rupees at any point in time. mRUPEE is a payment gateway service and Mobile Money Order & Semi Closed Wallet service of MMPL. RBL Bank is one of India’s fastest growing scheduled commercial banks with an expanding presence across the country. It has currently grown to a network of over 180 branches / 350 ATMs across 13 Indian States and Union Territories.

10) Private sector IndusInd Bank launched a co-branded credit card for football fans on 29 January 2015. It has tied up with which renowned English Premier League (EPL) club for this card? – Chelsea Football Club

Explanation: The card provides attractive offers on dining, entertainment, personal grooming, travel and rewards proposition depending on the spending pattern of the customers. With this card, the bank has tried to strengthen the Chelsea affinity through two specially designed card designs, while further driving the football fans’ connect with the club through offers, tie-ups and discounts on merchandise and collectibles on Chelsea’s official online megastore.

01 FEB, 2015

1) Which scheme of the Union Govt. was conferred with the Guinness record on 20 January 2015? – Pradhan Mantri Jan Dhan Yojana (PMJDY)

Explanation: The PMJDY scheme created a Guinness World Record for opening the maximum number of bank accounts in the shortest possible time. Altogether, 11.5 crore accounts have been opened under the scheme in less than five months. The scheme was launched on 28 August 2014 with a target of 7.5 crore till 26 January 2015. The Guinness authorities officially handed a certificate to Union finance minister Arun Jaitley in Delhi on 20 January 2015.

2) What was the notified interest rate (notified on 20 January 2015) for investments in Sukanya Samriddhi Account (SSA), the special deposit scheme for girl child that was launched on 22 January 2015? – 9.1% p.a.

Explanation: SSA will attract interest rate of 9.1% per annum for the current fiscal year (2014-15). SSA scheme prescribes opening of a deposit account with post offices in the name of a girl child by her biological parents or legal guardian. A girl is allowed only one account, while a parent can open such an account for a maximum of two

girl children. The account can be opened in the name of a girl child from birth till she attains the age of 10. A girl child who attains the age of 10 years a year prior to the commencement of new scheme will also be allowed to open an account. One can deposit maximum of Rs. 1.5 lakh in one financial year. This is the same amount on which tax benefit is available under Section 80C of Income Tax. The scheme was launched by Prime Minister Narendra Modi at Panipat (Haryana) on 22 January 2015.

3) The European Central Bank (ECB) on 22 January 2015 announced what major step to revive the sagging European economy? – It announced the plan to launch a €1 trillion govt. bond buying programme that will infuse huge amount of money into economy

Explanation: ECB would purchase sovereign debt starting from March 2015 until the end of September 2016 in an effort to release €60 billion euros ($68 billion) a month into the European economy. This announcement is the ultimate policy decision by the ECB for reviving economic growth and warding off deflation in the euro zone economy. However, it was felt that this measure could also have negative impact as it could allow spendthrift countries to slacken economic reforms. ECB is the central bank for the euro and administers monetary policy of the euro zone, which consists of 19 EU member states and is one of the largest currency areas in the world.

4) The Reserve Bank of India (RBI) on 22 January 2015 came out with which guideline on loan cost for country’s commercial banks? – It directed all banks to display all costs associated with loans on their website

Explanation: The RBI made it compulsory for banks to set out every possible cost in respect of the loan in a fact sheet at the processing stage. Banks will also have to publish the ‘annual percentage rate’ representing the total cost of credit to an individual borrower. Besides, they will have to display on their website the interest rate range for various contracted loans for the past quarter for different categories of advances. The significance of RBI direction is that it will make it possible for borrowers to compare loans from two lenders. Also, by making the charges a part of the contract, the RBI has reduced leeway for lenders to vary pre-payment charges subsequently.

5) Which bank was ranked at highest place among Indian banks in the list of the Top 50 Most Valued Global Banks (in terms of market capitalization) that was released by Bloomberg on 17 January 2015? – HDFC Bank

Explanation: HDFC Bank, which is India’s second-largest private bank (in terms of asset size), was ranked at 45th place in Bloomberg’s List of Top 50 Most Valued Global Banks of 2015. The bank was assigned 45th rank in the list with total market capitalization of $39 billion. State-run State Bank of India (SBI), with market capitalization of $38 billion, followed HDFC Bank with 46th place in this elite list. ICICI Bank, ranked 53rd, was the only other Indian entity to figure in the list of the 100 Most Valued Global Banks. Industrial and Commercial Bank of China (ICBC) topped the list with a market capitalization of $285 billion, over seven times that of HDFC Bank. Chinese banks dominate the list of the top 10 global banks, with Bank of China ($212 billion), China Construction Bank ($208.1 billion) and Agricultural Bank of China ($202 billion) also figuring in the list. Wells Fargo ($263 billion) and JP Morgan Chase ($205 billion) are other major global banks, ranked second and fifth, respectively. The market capitalization, or value, of an entity is calculated by multiplying the total number of its shares outstanding by its stock price.

6) According to announcement made by international financial transactions agency – Society for Worldwide Interbank Financial Telecommunication (SWIFT), which currency has recently become one of the top five most-used currencies in the world, overtaking the Canadian dollar and the Australian dollar? – Chinese Yuan

Explanation: SWIFT disclosed that Chinese Yuan accounted for a record 2.17% of global payments in December 2014, up from 1.59% in October 2014. It thus overtook Canadian dollar and the Australian dollar to become fifth largest used currency globally. It was preceded by the Japanese Yen with 2.69%, while the U.S. Dollar topped the chart with 44.6%, followed by the Euro and the British Pound with 28.3% and 7.92%, respectively. During December 2014, global payments in Yuan increased by 20.3% while growth for payments across all currencies was 14.9% during the same period. The Chinese government has been trying to boost the use of the Yuan globally by appointing more clearing banks overseas, and also allowing investors to devote offshore holdings of the currency in domestic capital markets.

7) The Reserve Bank of India (RBI) on 19 January 2015 came up with its additional guidelines on ‘Interest Rates on Advances’. What important guidelines on base rates were issues?

- Banks have been allowed to review their base rate methodology three years after it has been finalised, down from the current five years (This is to provide banks greater operational flexibility to them)

- From now, the spread (or the mark up over the base rate) charged to an existing borrower by banks could not be increased except on account of deterioration in the credit risk profile of the customer or change in the tenor premium (This means that if the credit rating of an existing borrowing unit deteriorates then at the time of the annual renewal of loan limit, the spread charged over the base rate will be increased. Otherwise the interest rate remains unchanged)

Explanation: Base rate is the minimum interest rate below which a bank will not lend. The Base Rate system was introduced with effect from 1 July 2010 to enhance transparency in lending rates of banks and enable better assessment of transmission of monetary policy.

8) What major restrictions on willful defaulters were imposed by Indian capital market regulator Securities and Exchange Board of India (SEBI) on 5 January 2015?

- Companies in which a promoter, director or subsidiary is declared a wilful defaulter will not be allowed to issue equity, debt securities, or non-convertible redeemable preference shares

- Wilful defaulters will not be allowed to make an offer to take over a listed company in India, but will be allowed to make a counter-offer in case they are the target of a hostile takeover

Explanation: Under law wilful defaulters are classified as companies or individuals who deliberately thwart repayment of dues to lenders. The SEBI proposals come as part of a concerted effort by Indian policymakers to tackle the bad loans that are hurting profitability at state-run banks, where stressed loans account for 12.9% of loans compared with 4.4% at private sector lenders, according to the data issued by the RBI. The RBI last year also passed tougher rules on wilful defaulters, including making companies that guarantee loan obligations of their units responsible if the subsidiary is declared a wilful defaulter.

9) Andhra Bank, which of-late was facing threat of merger in view of high non-performing assets (NPAs) from big corporate clients, especially from the infrastructure sector, almost got a new lease of life recently and there is no merger threat for the bank for now. Why this threat has evaporated? – Presently no bank is in a position to support another bank in view of the prevailing economic conditions

Explanation: The issue of mergers came up for discussion in the two-day bankers meet (“Gyan Sangam”) held in Pune between 2 and 3 January 2015. It emerged that going by the prevailing situations no bank is in a position to support other by acquiring stake or by some other similar manner. This, in effect, gives a new lease of life for Andhra Bank, the only public sector bank from Andhra Pradesh. The Government is set to grant a capital of about Rs. 200- 300 crore. Andhra Bank with a 5.99% non-performing assets (NPAs) in September 2014, will continue to focus on retail and small and medium enterprises. Once the loan-waiver completes in Andhra Pradesh, it hopes to have agriculture portfolio back in the prime.

10) Which company overtook Reliance Industries Ltd (RIL) to become the country’s most profitable private company for the quarter ended December 2014? – Tata Consultancy Services (TCS)

Explanation: The Tata Group owned TCS’ net profits for the quarter ending December 2014 stood at Rs. 5,327.60 crore, compared with RIL’s Rs. 5,256 crore. RIL’s consolidated net profit declined for the first time in more than two years as the company had to suffer huge inventory losses because of the crash in global crude oil prices. By overtaking RIL in net profits, TCS clinched a feat no other company has managed in the last 23 years. RIL has been topping the profitability charts since 1992-93, when it went past Tata Steel in the rankings. However, RIL remains India’s biggest company by sales though. Its consolidated sales in the December quarter stood at Rs. 93,500 crore, more than four times TCS’ quarterly sales of Rs 21,300 crore. RIL operates the world’s largest refinery in Gujarat. TCS is a global player and gets most of its business from the US and Europe.

25 Jan, 2015

1) In a surprising move the Reserve Bank of India (RBI) on 15 January 2015 cut its repo interest rate by 25 basis points making its first reduction in a year. What is the new repo rate after this cut? – 7.75%

Explanation: Repo rate is the level at which RBI lends to commercial banks. RBI cited lower-than-expected inflation, weak crude prices and weak demand as the reasons for its move, as well as the government’s commitment to sticking to a fiscal deficit target. The RBI had been under pressure from government and business leaders to reduce repo rate to increase lending and help kickstart the economy, but RBI governor Raghuram Rajan insisted that his priority was bringing inflation under control. India’s wholesale price index (WPI) for December 2014 rose just 0.11% year-on-year, after staying flat in November 2014.

2) In an important development for India’s insurance industry, the Reserve Bank of India (RBI) on 15 January 2015 gave what three major permissions to country’s bank with regard to their participation in insurance business?

- The banks have been allowed to act as brokers for insurers wherein they may undertake insurance agency or broking business departmentally and/or through subsidiary

- The banks have also been allowed to set up subsidiaries and joint venture companies for undertaking insurance business with risk participation

- The Banks have also been allowed to act as corporate agents without seeking prior approval from the RBI

Explanation: Under existing “Bancassurance” guidelines, a bank can act as a corporate agent and sell policy of only one life insurer and one non-life insurance company. The new guidelines allow banks to act as brokers permitting them to sell insurance policies of different insurance companies. However, banks would have to comply with IRDA guidelines wherever applicable. This RBI announcement is expected to increase insurance penetration in the country.

3) As per the latest Finance Ministry data released on 11 January 2015, private sector banks are way behind their PSU peers when it comes to opening financial inclusion accounts under the Pradhan Mantri Jan Dhan Yojana (PMJDY). What was the share of private banks in this flagship financial inclusion programme of the government? –Around 3%

Explanation: As per the latest Finance Ministry data, 13 private sector banks have opened 30.47 lakh Jan Dhan bank accounts as against 8.62 crore by state-owned banks as on 7 January 2015. Private banks have a market share of about 20% in Indian banking scenario, but their contribution in this flagship financial inclusion programme of the government is only about 3%. The number of such accounts opened by even regional rural banks (RRBs) stood at 1.92 crore. Prime Minister Narendra Modi launched the financial inclusion scheme on 28 August 2014. The initial target was to open 7.5 crore such accounts, but the later it was revised upwards to 10 crore to be completed by 26 January 2015. However, this target has already been achieved.

4) Which bank launched India’s first contactless debit and credit card on 7 January 2015 that enables one to make payments by just waving the card near merchant terminals instead of swiping the same? – ICICI Bank

Explanation: This type of card uses the near-field communication technology to provide customers improved convenience of speed and security over traditional cards as these cards can complete a transaction faster and be more secured as they remain with customer. ICICI Bank has introduced these two cards in Mumbai, Hyderabad and Gurgaon to begin with and it has installed over 1,200 PoS machines capable of accepting contactless payments in these cities. The bank launched two cards with the new technology – the Coral Contactless Credit Cards and the Expressions Wave Debit Cards – and both can also be used as regular cards at all merchant terminals (in other cities)

5) Union Government on 16 January 2015 launched a new Rs. 200 crore venture capital fund (VCF) for the Scheduled Caste (SC) community with the objective of promoting entrepreneurship in the community. Which financial entity will act as sponsor, settler and Asset Management Company (AMC) for this fund? – IFCI

Explanation: IFCI will act as sponsor, settler and asset management company to operate the scheme, and would contribute Rs. 50 crore that would comprise Rs. 5 crore as sponsor and Rs. 45 crore as investor. The main objective of the fund is to provide support and concessional finance to entrepreneurs belonging to the SC community. Under the scheme, financial assistance up to Rs. 15 crore for a period up to six years would be provided to SC entrepreneurs. SCs constitute around 16.6% of the country’s total population.

6) The insurance regulator Insurance Regulatory and Development Authority (IRDA) expressed concern over the skewed penetration of health insurance in India with four states accounting for 62% of premium. Which four states are these? – Maharashtra, Tamil Nadu, Karnataka and Union Territory of Delhi

Explanation: This concern was expressed in the Annual Report for 2014-14 that was published during January 2015. While these four states contributed 62% of total health insurance premium, the rest 32 States/UTs contributed only 38% of total premium. In fact, the health insurance premium from 8 sister States of North Eastern India was only118 crore (0.6%) for 2013-14. One of the reasons for the skew in premium is that 46% of health insurance premium comes from group policies sold to corporates. As a result the coverage is highest in states with high level of industrialization.

7) The Insurance Regulatory Authority of India (IRDA) has got an actuary after a gap of over three years. What is the name of the person assigned the post of member (actuary) in IRDA? – Pournima Gupte

Explanation: The post of member (actuary) had been lying vacant after R. Kannan retired from IRDA in 2011. The post was kept vacant for almost 3 years resulting in a major bottleneck for insurance companies in launching new schemes. Gupte, who was originally with Life Insurance Corporation (LIC), had worked as actuary at Reliance Life Insurance and IDBI Federal. This is also for the first time that a woman has been appointed on the board of IRDA. An actuary is a business professional who deals with the financial impact of risk and uncertainty. Actuaries provide assessments of financial security systems, with a focus on their complexity, their mathematics, and their mechanisms.

8) The Security and Exchange Board of India (SEBI) on 8 January 2015 proposed e-IPO norms where investors can bid for shares through Internet and eventually on mobiles. This was done so as to boost fund raising from markets. What is the proposed timeline for listing of shares under e-IPO? – 2 to 3 days

Explanation: Under the new norms, SEBI has proposed to drastically cut the timeline for listing of shares within 2-3 days of the IPO, as against 12 days currently. For already listed companies as well, SEBI has proposed a fast-track route for raising of funds through FPOs (Follow-on Public Offers) or Rights Offers (where funds can be raised from existing shareholders). The fast-track route of raising capital has been proposed for companies having public shareholding market valuation of as low as Rs. 250 crore, as against Rs. 3,000 crore currently. SEBI has invited public comments till January 30, after which it would put in place final norms for e-IPO as also for fast-track issuances.

9) London-based financial journal “Central Banking” named who as the winner of the “Governor of the Year” award on 13 January 2015? – Raghuram Rajan, RBI Governor

Explanation: This is the second major prize for RBI Governor since he held the helm of RBI a little over a year ago. He was named in recognition of the part the RBI and its staff have been playing in bringing macroeconomic stability to the Indian economy, in creating more competition and new growth opportunities in the banking and financial markets, as well as in expanding financial inclusion. He had earlier won the “Best Central Bank Governor”

award for 2014 by Euromoney magazine. Rajan has been credited with stabilising the rupee and controlling stubbornly-high inflation that rocked India’s economy for the last three years.

10) Which Middle-east based bank during January 2015 launched region’s first online-only consumer banking business will offer personal finance products and credit cards? –Gulf International Bank (GIB)

Explanation: Gulf International Bank (GIB) is a Bahrain-based entity but is 97%-owned by the Saudi government. The online-only retail banking business launched by it has been launched for Saudi Arabia and has been named as “Meem”. It aims to have around a 3% share of the Saudi consumer banking market by 2020. Saudi Arabia is Middle-East’s largest economy and around two-third of the country’s population is under 30. Until now, GIB was solely a wholesale bank and provided services to big companies and financial institutions. It needed a bailout from the Saudi government after suffering $757 million of losses in 2007 from investing in complex debt instruments linked to the U.S. subprime housing crisis.

18 JAN, 2015

1) In an important development the Finance Ministry during January 2015 gave what assurance to public sector banks (PSU banks) and financial institutions? – Full freedom in matters related to commercial decisions, transfers and postings

Explanation: The Finance Ministry wrote letter to all public sector banks and financial institutions on 5 January 2015 to take all commercial decisions in the best interest of the organisation without any fear or favour. This assurance followed a two-day brainstorming meeting on 3-4 January 2015 in Pune where Prime Minister Narendra Modi discussed ideas to improve the health of state lenders, who are facing mounting bad loans and corporate governance issues. It is worth mentioning that f or years, political interference and union opposition have thwarted major reforms at the lenders that account for more than 70% of total outstanding loans in the sector. PSU banks recorded the highest level of stressed loans at 12.9% of their total advances in September last year, while the same ratio for private sector banks was at 4.4%, according to the latest RBI data.

2) The shareholders of Kotak Mahindra Bank and ING Vysya Bank approved the proposal to merge ING Vysya Bank with Kotak Mahindra Bank. The management of the banks expects the new entity to be operational by 1 April 2015. In terms of total business, this new entity would be India’s …………….. largest private bank? – Fourth

Explanation: The deal will make Kotak Mahindra the fourth-largest private bank in India, in terms of total business after ICICI Bank, HDFC Bank and Axis Bank. The combined banking entity will have 1,214 branches in India. However, the merger needs regulatory approvals, including from the Reserve Bank of India (RBI) and the Competition Commission of India. ING Vysya Bank’s shareholders had approved the merger proposal on 7 January while shareholders of Kotak Mahindra gave their approval to the same on 8 January 2015. The top management of both banks had made the merger announcement on 20 November 2014.

3) ‘Gyan Sangam’ – the 2-day bankers retreat, which concluded on 3 January 2015, was held in which city? – Pune

Explanation: ‘Gyan Sangam’ was a 2-day “Retreat for Banks and Financial Institutions” and was held at National Institute of Banking Management (NIBM), Pune. Participants at “Gyan Sangam” included Dr. Hasmukh Adhia,

Secretary, Department of Financial Services (DFS), regulators, officers of the Ministry of Finance, top management of all Public Sector Banks (PSBs), insurance companies and financial institutions (FIs). The idea of organising such a retreat is to provide an informal academic environment, which can bring out the creative best of the minds of professionals and regulators. It was inaugurated by Jayant Sinha, Minister of State for Finance while Prime Minister Narendra Modi addressed the concluding session.

4) Indian banks have achieved the target set by the government to open 10 crore accounts under the Pradhan Mantri Jan Dhan Yojana (PMJDY) a month before the deadline of 26 January 2015. How many bank accounts have been opened till 26 December 2014 as disclosed by the govt.? – 10 crore 8 lakh

Explanation: Banks have issued 7.28 crore RuPay Cards as on 22 December 2014. In order to achieve universal access of banking, banks have deployed bank Mitras in 1.23 lakh Sub Service Areas (SSAs) leaving a gap of 6,031 uncovered SSAs. Banks were asked to complete deployment of bank Mitras latest by 15 January 2015 and display details of the same on their own website as well as on State Level Bankers’ Committee. This was to ensure that all Bank Mitra devices are online inter-operable through RuPay cards.

5) The finance ministry and the RBI are discussing a proposal to create a holding company to which the equity of state-owned banks can be transferred. This is being seen as first step to effect much-needed structural changes in the banking sector of the country. Which RBI-appointed committee had recommended this? – P.J. Nayak Committee

Explanation: The Committee, led by former Chairman and CEO P.J. Nayak, had submitted its report to the RBI in May 2014. A separate holding company will help separate ownership and control in public sector banks and distance the government, the dominant shareholder, from their management.

6) The Union Government on 4 January 2015 announced Rs. 1,900 crore for e-governance project “Panch Deep”. This project seeks to achieve what? – To automate all transactions between the organisations and employees with regard to ESIC

Explanation: Project “Panch Deep” is an e-governance project which will deploy a massive ERP (Enterprise wide Resource Planning) across the country connecting all the ESIC (Employees State Insurance Corporation) and other organisations in the ecosystem. For this the employees will get unique biometric cards. The project will also take care of payments of third party bills. The IT backbone under this project will also develop a huge repository of medical records, making it easier for doctors and patients.

7) Prime Minister Narendra Modi on 1 January 2015 announced the decision to replace the 65-year-old Planning Commission with a new organisation named NITI Aayog. The term NITI is named after which a newly formed body? – National Institution for Transforming India (NITI)

Explanation: National Institution for Transforming India (NITI) will act more like a think tank or forum in contrast with the Commission which imposed five-year-plans and allocated resources to hit set economic targets. NITI Aayog includes leaders of India’s 29 states and seven union territories. But its full-time staff – a deputy chairman, Chief Executive Officer and experts – will answer directly to the Prime Minister, who will be chairman. The present NDA government has accused the Planning Commission of stifling growth with Soviet-style bureaucracy. Despite being blamed by critics for the slow growth that long plagued India, the Commission survived the market reforms of the early 1990s.

8) On 5 January 2015 who was named as the first Vice-Chairman of the newly announced NITI Aayog (Policy Commission), which replaced Planning Commission? –Arvind Panagariya

Explanation: Arvind Panagariya is an eminent free market economist and has been an Economics professor at Columbia University in New York. He, as vice chairman, would have a pivotal role in coordinating economic strategy and hold cabinet rank. Economist Bibek Debroy along with former secretary of defence research and development V.K. Saraswat were named as the other full-time members of the commission. NITI Aayog (the new commission) was set up to modernise economic strategy after decades of Soviet-style central planning. Panagariya’s market-friendly, pro-growth economics has helped shape Modi’s outlook and is seen by many as an attack on overbearing labour regulations and state-run companies.

9) Market regulator Securities and Exchange Board of India (SEBI) on 31 December 2014 notified a new rule pertaining to mutual funds. Under this new rule what allowance has been given? – The new rule allows launch of two new schemes in a year by mutual fund houses with net worth below Rs. 50 crore

Explanation: However, such permission would be considered on a case-to-case basis, depending on such Asset Management Companies (AMCs) demonstrating that serious efforts are being made by them to meet the net worth requirements within the prescribed timelines. The move came in force with immediate effect. SEBI, in February 2014, had hiked the minimum net worth requirement for mutual funds to Rs. 50 crore from Rs. 10 crore in a move to weed out non-serious players and ensure stability of the financial system. At that time, 19 fund houses had net worth below this threshold, but a few of them have since complied with the requirement by increasing their net worth to the desired level.

10) The Union Government on 29 December 2014 approved raising its stake up to 51% in which financial institution so as to make it a government company? – IFCI

Explanation: Industrial Finance Corporation of India (IFCI), which is the oldest financial institution in the country, was established on 1 July 1948. The Union Cabinet chaired by Prime Minister Narendra Modi approved infusion of Rs. 60 crore in IFCI to make it a government company by way of acquisition of preference shares from existing shareholder(s). It was set up in 1948 as a statutory corporation under the Industrial Finance Corporation Act, 1948. The Act has since been repealed by the Industrial Finance Corporation (Transfer of Undertaking and Repeal) Act, 1993 and IFCI Ltd was registered under the Companies Act, 1956 on 31 March 1993. Till now, IFCI was not a Government Company under section 2(45) of the Companies Act 2013.

06 Jan, 2015

1) The Union Government on 31 December 2014 announced which major decision regarding reforms in the banking sector? – Splitting the post of Chairman and Managing Director (CMD) into two for the public sector banks

Explanation: In a significant departure from the past practice, the Government of India announced to separate the post of Chairman and MD & CEO. In Public Sector Banks (PSBs), so far the top executive was designated as CMD, with the exception of the largest lender State Bank of India (SBI), where the top position is commanded by the Chairman and there are four Managing Directors with clearly defined executive roles under them. The posts of Chairman and MD in the private sector are held separately.

2) The Union Government has notified ‘Printing of One Rupee Currency Notes Rules, 2015’, which will come into effect from 1 January 2015. This means that the 1 rupee paper note, which was discontinued due to high cost, would make its comeback. When the Re. 1 paper note discontinued? – November 1994

Explanation: Due to higher cost and for freeing capacity to print higher denomination notes, printing Re. 1 note was discontinued in November 1994, followed by Rs. 2 in February 1995, and Rs. 5 in November 1995. Since then, only coins have been issued for these denominations. However, old notes are still in circulation and remain legal tender. The new Re. 1 note will be different in terms of colour, too. It will be predominantly pink and green. Earlier, the Re. 1 currency note had a predominantly indigo colour. Also, the new note will have ‘Bharat Sarkar’ on its masthead, with ‘Government of India’ printed below that. As before, the new one rupee note will have the signature of the Finance Secretary. Apart from the one rupee note, all other paper currency (Rs. 2, Rs. 5, Rs. 10, Rs. 20, Rs. 50, Rs. 100, Rs. 500 and Rs. 1,000) will have the signature of the RBI Governor, as these are issued by the Reserve Bank of India, whereas Re. 1 is issued by the Government of India.

3) The Reserve Bank of India (RBI) on 23 December extended the deadline for exchanging pre-2005 currency notes of various denominations including Rs. 500 and Rs. 1,000. What is the new deadline? – 30 June 2015

Explanation: Earlier in March 2014 the RBI had set 1 January 2015 as the deadline to exchange pre-2005 currency notes. Thus it extended this deadline by 6 months. RBI also clarified that all such notes will continue to remain a legal tender. These notes can be exchanged for their full value. Currency notes issued before 2005 do not have the year of printing on the reverse side. In notes issued after 2005, the year of printing is visible at the bottom on the reverse. Post-2005 notes have added security features and help in curbing the menace of fake currency. Seeking

cooperation for withdrawing pre-2005 currency notes from circulation, the RBI has asked the public to deposit the old design notes in their bank accounts or exchange them at a bank branch convenient to them.

4) A latest report on the status of health insurance in India prepared by the Insurance Regulatory and Development Authority (IRDA) was tabled in Parliament by Union Finance Minister Arun Jaitley during December 2014. According to this report what percentage of Indian population has been covered under health insurance? – Around 17%

Explanation: This IRDA report stated that Only 21.62 crore people, or around 17% of the total population, were covered by health insurance at the end of March 2014. It is worth mentioning that the figure of health insurance quoted in this IRDA report is far fewer than the estimates given by a World Bank report of 2012. The World Bank report of 2012 titled “Government-Sponsored Health Insurance in India: Are You Covered?” estimated that over 30 crore people, or more than 25% of the population, gained access to some form of health insurance by 2010, up from 5.5 crore during 2003-04. More than 18 crore of them were people below the poverty line. World Bank report found that from 2007 to 2012, government-sponsored schemes contributed to a significant increase in the population covered by health insurance, at a pace possibly unseen elsewhere in the world.

5) The Mid-Year Economic Review for fiscal year 2014-15 was tabled in the Lok Sabha on 19 December 2014. According to this review the Indian economy is expected to record what growth rate during the year? – 5.5%

Explanation: The Mid-Year Economic Review (2014-15) was prepared by Arvind Subramanian, Chief Economic Advisor in the Finance Ministry. In the review it was stated that adhering to the fiscal deficit target of 4.1% of GDP is a major challenge for the government. The Finance Ministry is now betting big on a pick-up in economic activity in the second half of the year.

6) The RBI Deputy Governor H R Khan on 19 December 2014 stated that RBI will come out with norms on easing the two-factor authentication requirement for small value transactions in a couple of months. What is the limit for small value transactions as proposed by the RBI for same? – Rs. 3,000

Explanation: RBI is looking at removing the two-factor authentication requirement for small value transactions up to Rs. 3,000 to facilitate easy transactions especially in the wake of e-commerce transactions gaining traction.

7) The Reserve Bank of India (RBI) on 17 December 2014 imposed fines on state-run Bank of Baroda (BOB) and ICICI Bank – the largest private bank in India. What was the charge on these two banks? – Violation of KYC and anti-money laundering norms

Explanation: RBI imposed fines worth Rs.50 lakh and Rs.25 lakh on ICICI Bank and Bank of Baroda, respectively, for violations of its instructions on know-your-customer (KYC) and anti-money laundering norms. Three other banks

including State Bank of India, Axis Bank and State Bank of Patiala, were cautioned to put in place appropriate measures and review them from time to time to ensure strict compliance of KYC requirements in future. This RBI action came after it received a complaint in this regard. It cautioned these banks to put in place appropriate measures and review them from time to time to ensure strict compliance of KYC requirements in future. The fraudsters had managed to open fictitious accounts in the name of the statutory organisation in the above five banks and operated the accounts mainly for encashing cheques/demand drafts/postal orders of which they were not the rightful owners, for periods ranging from one month to two years, without being detected by the banks.

8) Anil Ambani-led Reliance Capital recently entered into a long-term strategic alliance with which Japanese banking group to make its foray into the banking sector? –Sumitomo Mitsui Trust Bank

Explanation: As part of the agreement, the Reliance Capital will allot a 2.77% stake valued at Rs. 371 crore through a preferential allotment with a one year lock-in period to Sumitomo. Sumitomo Mitsui Trust Group is the fourth-largest bank in Japan by market capitalisation and corporate loans, and Japan’s largest financial institution managing assets of $682 billion with assets under custody of $1.8 trillion as of September 2014.

9) In an important development a major deadlock between the Centre and the States was broken on the issue of Goods and Services Tax (GST) on 15 December 2014 paving the way for the GST Bill to be introduced in the current session of Parliament. To break the deadlock, the Centre agreed to which major demand of the States? – To keep petroleum out of the GST regime

Explanation: While on its part, the Centre agreed to the demand of the States to keep petroleum out of the GST regime, the States on their part agreed to entry tax being subsumed in the new tax regime which is proposed to be introduced from April 2016. Compromise was reached after an over hour-long meeting between Finance Minister Arun Jaitley and finance ministers of seven states – Punjab, Haryana, Gujarat, Tamil Nadu, Maharashtra, Karnataka, and Jammu and Kashmir. Concerns of other states have already been addressed. It was agreed that petroleum goods would be kept out of the Goods and Services Tax (GST) Bill for initial few years and a decision to include in the new tax regime would be taken later. States, which earn over 50% of their revenue from taxes on petrol and other petro products, wanted it to be out of GST so they could continue with levying different tax rates on these products.

10) The 14th Finance Commission submitted its report to the President on 15 December 2014. The commission headed by former RBI Governor Y.V.Reddy has been constituted for which period for which it submitted its report? – 1 April 2015 to 31 March 2020

Explanation: The 14th Finance Commission was constituted by the President on 2 January 2013 and was to give its report by October 31 this year. But its tenure was extended till 31 December. In this report the commission gave its views on the devolution of tax receipts from the Centre to the states between 1 April 2015 and 31 March 2020. The Commission had sought two more months to examine financial projections and carry out consultations with

the Andhra Pradesh and Telangana governments. It was also asked to look into the issue of Goods and Services Tax (GST). The commission’s terms of reference also included the pricing of public utilities such as electricity and water in an independent manner and the sale of non-priority public-sector units.

18 Dec, 2014

1) What important recommendation was given by a committee constituted in 2010 to design future currency notes as disclosed by Union Finance Minister Arun Jaitley on 5 December 2014? – No other national leader’s image should be put on banknotes except Mahatma Gandhi

Explanation: The committee in its report said that it would be improper to put image of other national leader on country’s currency notes as no other personality could better represent the ethos of India than Mahatma Gandhi. On the advice of the Government, the RBI had, in October 2010, constituted a Committee to design future currency notes.

…………………………………………………………………………….

2) The Reserve Bank of India (RBI) on 5 December 2014 gave what relaxations in norms for White Label ATM (WLA) operators? – They can now accept international cards and also source cash supply from other than banks

Explanation: The RBI provided a breather to WLA operators by allowing them to accept international credit/debit/prepaid cards. The cards issued under card payment network schemes (authorized under the PSS Act 2007) will be allowed for the purpose. The WLA operators have to ensure that they have established technical connectivity with the respective card network operators either directly or through their sponsor banks. In addition, RBI enabled delinking of cash supply from sponsor banks. WLA operators would now be able to tie up with other commercial banks for cash supply at WLAs. Earlier, the cash supply had to be managed only through a sponsor bank which limited the scope of cash management for the operators. During 2012 the RBI had allowed corporates to set up white label ATMs to increase the penetration of ATMs in several areas of the country. These ATMs are being operated by non-banking corporates and organisations and are providing ATM services to customers of all banks.

…………………………………………………………………………….

3) Which Indian bank has become the first in India to have developed its own economic index on lines of HSBC India Services Purchasing Managers’ Index (PMI) and HSBC India Manufacturing PMI? – State Bank of India (SBI)

Explanation: SBI’s economic index has been named ‘SBI Composite Index’ and will be released in January 2015. It will have both monthly and yearly indices. The short-term report, to be released in the first week of every month, will forecast the state of the economy two months down the line. The annual index will make year-on-year forward predictions. This index has gone through eight years of back-testing (2007-2014) and during this index accurately predicted economic direction 72% of the time. SBI Composite Index will take into account the credit demand and other indicators of economic activity like consumer spending, mining activity, interest rates, inflation, exchange rate and other thematic indices and service and manufacturing activities.

…………………………………………………………………………….

4) Wholesale price inflation (WPI) in India hit the zero level in November 2014 as stated in data released by the Union Govt. on 15 December 2014. This was mainly on account of a decline in prices of food, fuel and manufactured items. When WPI was lower than this level? – July 2009

Explanation: This is probably the first time when WPI inflation has hit the exact zero level. In July 2009, the WPI-based inflation was (-) 0.3% (negative 0.3%). The inflation rate thus recorded during November 2014 was the lowest in about five-and-a-half years. The WPI-based inflation was at 1.77% in October 2014 and 7.52% in November 2013.

…………………………………………………………………………….

5) The Supreme Court-backed Special Investigation Team (SIT) on black money lead by Justice M.B. Shah recently made what important recommendation pertaining to high value purchases? – Quoting of permanent account number (PAN) in addition to submitting an identity proof such as Aadhaar should me made compulsory for purchases over Rs. 1 lakh

Explanation: The SIT recommended that quoting of PAN and Aadhaar should be made mandatory for purchases over Rs. 1 lakh and should cover purchases made by cash as well as cheque. It further recommended that a central “Know Your Customer” (KYC) database be set up which captures details of PAN, passport number or driving licence number, which are often quoted for transactions. Other important SIT recommendation is that the amount of cash in possession should be capped at Rs 10 or 15 lakh and any amount beyond the threshold should be confiscated.

…………………………………………………………………………….

6) The Lok Sabha on 9 December 2014 passed the Payments and Settlement Systems (Amendment) Bill. What is the main objective of this bill? – To bring India’s banking payment system in sync with international practices

Explanation: The Bill seeks to improve the payment and settlement systems by increasing transparency and stability of Indian financial market. Amendment to the Payment and Settlement Systems Act, 2007 was proposed to update the regulations in line with globally accepted standards. The amendment seeks to protect funds collected from the customers by the payment system providers and to extend the Act to cover trade repository and legal entity identifier issuer. A Legal Entity Identifier is a unique ID associated with a single corporate entity. It was felt that numerous obsolete laws exist in the Indian financial system and they are needed to be rectified.

…………………………………………………………………………….

7) During December 2014 Union Govt. took an important decision to decrease subsidy load by scrapping the supply of subsidised kerosene through the Public Distribution System (PDS). Under this decision, from now on subsidised kerosene would be supplied to only one category of households. Which category is this? – Households without electricity connection

Explanation: According to information given by Union Finance Minister Arun Jaitley the Centre is in the process of writing to States asking them to provide subsidised kerosene only to un-electrified households. States which have achieved near 100% electrification will be incentivised to become kerosene-free. In the remaining States, un-

electrified households will be given the choice between cash subsidy in lieu of kerosene allocation and upfront subsidy for greener solar lighting systems. This decision comes close on the heels of cuts in the Centre’s social sector spending allocations aimed at aligning plan expenditure with subdued revenue collections. The allocation of kerosene subsidy will now be in accordance with Census 2011 data, which shows that it’s no longer a fuel of choice for cooking but is used for lighting purposes. The Census showed that kerosene has been almost completely replaced by LPG in urban and semi-urban areas and biomass is the cooking fuel of choice in the rural areas. Less than 2% of India’s rural households use kerosene as cooking fuel, according to the Census.

…………………………………………………………………………….

8) Government of India is kicking off its ambitious divestment programme for the current fiscal year from 5 December 2014 with the sale of a 5% stake in a PSU. Govt. is expected to raise $275 million through this stake sale. Which PSU was this? – Steel Authority of India Ltd (SAIL)

Explanation: SAIL thus became the first PSU to be divested for meeting the proposed budget deficit target. The government, which owns an 80% stake in SAIL, sold up to 206.5 million shares through an auction on the stock exchanges from 5 December. The floor price for the share auction of SAIL was set at 83 rupees apiece. Union Govt. had planned to raise $9.5 billion from divestments in the fiscal year ending in March 2015. However, it is likely to miss this target due to slow speed of the divestment programme.

…………………………………………………………………………….

9) Union Govt. on 3 December 2014 constituted a high level committee with the objective of bringing about clarity on tax laws. Who is heading this committee? – Ashok Lahiri (Former Chief Economic Advisor)

Explanation: This committee has been constituted in line with Finance Minister Arun Jaitley’s announcement during the 2014-15 Budget speech pertaining to bringing about clarity in tax laws in the country. This committee will interact with trade and industry to ascertain where clarity on tax laws is required. Other members of the committee include retired Settlement Commission Member Sidhartha Pradhan and Gautam Ray, retired Director General (Audit) of Customs and Central Board of Excise and Customs (CBEC).

…………………………………………………………………………….

10) During December 2014, what important decision was taken by the Union Govt. in the area of FDI in construction sector? – The lock-in period for foreign investments in the construction sector has been diluted

Explanation: A note released on 3 December 2014 by DIPP stated, while foreign investment cannot be repatriated before three years following completion of minimum capitalisation, an investor may be allowed to exit earlier by getting approval from the Foreign Investment Promotion Board (FIPB). This decision has been taken following Union Cabinet’s nod to allow FDI in construction development in October 2014.

Following are the important points associated with above decision:

– The minimum capital requirement for such projects (for joint ventures with Indian partners) has been halved from $10 million to $5 million. For wholly owned subsidiaries of foreign companies, the requirement is $10 million.

– At least 50% of each project must be developed within a period of five years from the date of obtaining all mandatory clearances. The investor would not be allowed to sell under developed plots.

– The minimum area to be developed is 10 hectares of land area for serviced housing plots and 50,000 sq meters of built-up area for construction development projects. For combined projects, any one of the two conditions is sufficient

08 Dec, 2014

1) The Reserve Bank of India (RBI) on 27 November 2014 issued final guidelines for payments and small banks that aim to take banking services to more people and small businesses. What is the prescribed minimum paid-up equity capital for both these categories of banks? – Rs. 100 crore

Explanation: The small bank will primarily undertake basic banking activities of acceptance of deposits and lending to un-served and under-served sections, including small business units, small and marginal farmers, micro and small industries and unorganised sector entities. On the other hand payments banks would help a common person to make payments through an easy mode, to a wide array of institutions/people in a cost effective manner. They are expected to emerge as specialized banks to provide services to small businesses and persons.

……………………………………………………………………………

2) The Reserve Bank of India (RBI) presented its 5th Bi-monthly Monetary Policy review for 2014-15 fiscal on 2 December 2014. Despite pressure to cut interest rates from industry as well as some quarters of the government, RBI kept the major rates unchanged as it kept its focus on tackling inflation. What are the major projections and rates coming out of this review?

- GDP growth rate projected at 5.5% for current fiscal

- Consumer Price Index (CPI)-based inflation projected to remain at 6% by March 2015

- Repo rate (short term lending rate) unchanged at 8%

- Cash Reserve Ratio (CRR) unchanged at 4%

- Statutory Liquidity Ratio (used for unlocking banking funds) retained at 22%

……………………………………………………………………………

3) The RBI in its 5th Bi-monthly Monetary Policy review for 2014-15 fiscal presented on 2 December 2014, kept the most important repo rate unchanged at 8%. The last time this rate was changed was – January 2014

Explanation: In January 2014 the RBI had increased the repo rate by 25 basis points to 8%. Since then this rate has been unchanged.

……………………………………………………………………………

4) Which private-sector bank on 25 November 2014 received approval from the Reserve Bank of India (RBI) to enter the general insurance business? – Kotak Mahindra Bank (KMB)

Explanation: Kotak Mahindra Bank was given the approval to form a 100% subsidiary to enter the general insurance industry. KMB has also floated the new venture with an initial capital of Rs. 100 crore and Executive Vice-President Mahesh Balasubramanium was named the Chief Executive Officer (CEO) of the new venture. Initially, the bank will focus on motor and health insurance and aims to grab about 0.5% of the market share in five years. The industry is expected o grow at a CAGR of 15% to grow to Rs.1.80 lakh crore by 2020 (from Rs. 77,000 crore).

……………………………………………………………………………

5) Share of which private sector bank will be split and reduced to face value of Rs. 2 from 4 December 2014, as notified in a notification issued by the NSE and the BSE? – ICICI Bank

Explanation: Face value of ICICI Bank’s equity share is Rs. 10 at present. ICICI Bank has fixed record date as 5 December 2014 for the purpose of ascertaining the eligible shareholders who would be entitled to receive five equity shares of face value of Rs. 2 each in lieu of one equity share of face value of Rs. 10 each of the bank. The stock split is expected to increase investor participation in the stock.

……………………………………………………………………………

6) The Reserve Bank of India (RBI) during November 2014 eased rules for low-cost housing loans. What is the new prescribed rule? – Banks can now extend loans to individuals against long-term bonds issued by banks for financing infrastructure and affordable housing

Explanation: This regulation has been imposed primarily to provide liquidity to retail investors investing in such long-term bonds. The RBI also proposed that the banks should lay down a policy in this regard prescribing suitable margins, purpose of the loan and other safeguards. Such loans should be subject to a ceiling, say, Rs. 10 lakh per borrower, and tenure of loan should be within the maturity period of the bonds. Banks would not be permitted to lend against such bonds issued by other banks.

……………………………………………………………………………

7) In a surprise move the Reserve Bank of India (RBI) on 28 November 2014 scrapped the gold import curb scheme, popularly known as the 80:20 Scheme. This scheme required trading companies to export 20% of gold imported. When the scheme was imposed by RBI? – August 2013

Explanation: The 80:20 Scheme was put in place in August 2013 to curb gold imports, considered a major cause for the widening current account deficit. The move to curb this scheme came as a surprise because after gold imports surged 280.4% year-on-year in October 2014, the RBI had been in talks with the government for a decision on increasing curbs on gold imports. India’s trade deficit in October narrowed to $13.36 billion, after hitting an 18-month high of $14.2 billion in September 2014. The 80:20 Scheme ensured that at least one-fifth of every lot of imported gold is exclusively made available for the purpose of exports.

……………………………………………………………………………

8) The market capitalization of all listed companies on the Bombay Stock Exchange (BSE) hit which landmark figure on 28 November 2014? – Rs. 100 trillion

Explanation: BSE is the oldest stock exchange in Asia. The combined market capitaliastion of all listed companies on the exchange hit a record Rs. 100 trillion (1 lakh crore) mark in morning trade on 28 November 2014. Nearly 5,500 companies are listed on the BSE, but the top 100 companies make up for over 70% in market capitalization. Market capitalisation is used to compare companies in terms of their market value. So, to gauge BSE’s standing, its market cap should be seen in the global context. In dollar terms, BSE’s market cap is now nearly $1.7 trillion (at Rs. 60 per dollar). That is roughly one tenth the size of the New York Stock Exchange (NYSE), which has a market cap of nearly $18.8 trillion.

……………………………………………………………………………

9) On 27 November 2014 the World Trade Organization (WTO) clinched the first global trade deal after years of stalemate between its members. This historic deal is associated with which subject? – New standards for customs checks and border procedures

Explanation: The deal was adopted by 160 member countries barely a fortnight after India and the United States resolved a major dispute over food subsidies. It paved the way to remove a major irritant in adopting the trade facilitation agreement (TFA) to make global trade easier, faster and cheaper by making systems transparent and reducing red tape. The agreement means the WTO will introduce new standards for customs checks and border procedures. Proponents say this will streamline the flow of trade around the world, adding as much as $1 trillion and 21 million jobs to the world economy.

……………………………………………………………………………

10) In a major clampdown for suppression of material facts in IPO documents, SEBI on 29 November 2014 penalised merchant banking arms of SBI, ICICI, Kotak Mahindra, IDBI, DSP Merrill Lynch and Edelweiss groups in a public offer of 2012. This public offer was of which reputed rating agency? – CARE

Explanation: The IPO of CARE came in December 2012, prior to which these six bankers had filed a Red Herring Prospectus for the public issue involving sale of nearly 72 lakh shares. SEBI had discovered that merchant banking arms of SBI, ICICI, Kotak Mahindra, IDBI, DSP Merrill Lynch and Edelweiss had picked and chosen some material facts that they preferred to disclose and suppressed some material facts about the IPO. The six merchant banks have been asked to pay a fine of Rs.1 crore – the maximum penalty applicable for violation of disclosure related norms in IPO documents within 45 days.

23 Nov, 2014

1) According to an announcement made by the Union Finance Ministry on 14 November 2014, which two States and three Union Territories have achieved 100% banking inclusion under the Pradhan Mantri Jan Dhan Yojana (PMJDY) as on 5 November 2014? – Goa and Kerala (states) and Chandigarh, Puducherry and Lakshadweep (Union Territories)

Explanation: 100% banking inclusion means having at least one bank account for every household. According to official data available till 5 November 2014, 11.26 lakh bank accounts were opened in Kerala, followed by 77,485 accounts in Goa, 1.36 lakh accounts in Chandigarh, 69,819 accounts in Puducherry and 3,588 accounts in Lakshadweep under the Pradhan Mantri Jan-Dhan Yojana (PMJDY). States of Kerala and Goa, union territories of Chandigarh, Puducherry and Lakshadweep and three districts of Gujarat — Porbandar, Mehasana, Gandhinagar have been declared as 100% saturated in terms of coverage of all households with at least one bank account.

………………………………………………………………………………………

2) Kisan Vikas Patra (KVP), one of the most popular small savings scheme in India, was re-launched on 18 November 2014. It was discontinued from November 2011 on the recommendation of the Shyamala Gopinath Committee. When KVP was initially launched? – 1 April 1988

Explanation: The Kisan Vikas Patra was launched initially in 1988 and became one of the most popular small savings instruments ever. However, the Shyamala Gopinath Committee (2011) recommended that it should be discontinued as it was prone to misuse, being a bearer-line instrument. KVP was later discontinued from November 2011. But now Union govt. has relaunched the scheme with an objective of giving a boost to country’s small savings sector.

………………………………………………………………………………………

3) The Reserve Bank of India (RBI) on 11 November 2014 raised the minimum capital requirement for so-called shadow banks to Rs. 1 crore by March 2016 and Rs. 2 crore by end of March 2017. This was done to avoid any potential risk to the economy from these rapidly growing finance firms by regulating them like traditional banks. What was the minimum capital requirement for these entities till now? – Rs. 25 lakh

Explanation: The RBI also announced that certain investment-grade non-banking firms would be allowed to take deposits and the companies will have until March 2016 to acquire a credit rating. It also capped deposit-taking at 1.5 times the size of a firm’s minimum capital, down from four times previously. Shadow banks, or non-banking financial companies (NBFCs), have in recent years played a bigger role in financing small businesses and individuals in India, taking over from the banks that reined in credit as economic growth slowed. These companies were now so entrenched in the financial system that they needed better regulation.

………………………………………………………………………………………

4) Which bank would be merged with Kotak Mahindra Bank (KMB) as approved by the Board of Directors of KMB on 20 November 2014? – ING Vysya Bank

Explanation: As per as a notice to the BSE by KMB, the KMB Board approved a share swap ratio of 725 equity shares of Rs. 5 each of KMB for every 1000 equity shares of Rs. 10 each held in IVB. This merger would be first merger since 2010 in private sector banking space when Bank of Rajasthan was acquired by ICICI Bank. ING Vysya Bank was the first bank to come into existence through a merger between an Indian bank and a foreign bank when Dutch banking group ING and Vysya Bank merged in 2002 to form this bank.

………………………………………………………………………………………

5) The Reserve Bank of India (RBI) on 20 November 2014 asked banks to inform their customers about fall in minimum balance well in advance and said that penal charges should be levied only to the extent of shortfall in such balances. The guidelines pertaining to levying of penal charges for non-maintenance of minimum balance are coming into effect from which date? – 1 April 2015

Explanation: The notification issued by the RBI stated that the penal charges should be directly proportionate to the extent of shortfall observed. Charges should be a fixed percentage levied on the amount of difference between the actual balance maintained and the minimum balance as agreed upon at the time of opening of account. A suitable slab structure for recovery of charges may be finalized for the same.

………………………………………………………………………………………

6) The Securities and Exchange Board of India (SEBI) on 19 November 2014 approved new rules on insider trading that will replace a two-decade old law. Under the newly approved rule, which new segment of people will be considered insiders, i.e., persons capable of influencing prices of shares through the sensitive information they possess about particular scrip/scrips? – Immediate relatives of senior management, other stakeholders such as founders, and third-party clients handling market sensitive information

Explanation: The rules, which are based on recommendations first revealed late during 2013, broaden the scope of who can be held liable for insider trading violations and require company officials to be more transparent about their trading activities. SEBI has widened the definition of who exactly is an insider by including persons in possession of or with access to unpublished price sensitive information. The definition now states that all persons and their immediate relatives with a contractual, fiduciary or employment relationship with the company will be considered “connected persons”. New insider rules are part of efforts being done by SEBI to boost investor confidence in stock markets.

………………………………………………………………………………………

7) What is the name of the internet banking facility of Bharatiya Mahila Bank Ltd (BMB) that was launched on 19 November 2014? – ‘BMBSmartBanking’

Explanation: BMB, India’s first women’s bank completed one year of operations on 19 November 2014. On this occasion a newly designed website of the bank was also launched. The ‘BMBSmartBanking’ was launched by Ananthasubramanian, Chairman and Managing Director, BMB. BMB currently has network of 33 branches and all of them have core banking solutions (CBS) with onsite ATMs.

………………………………………………………………………………………

8) Indian Railways had identified how many areas in its operations to allow 100% foreign/private investment as stated in the new guidelines under the Railway FDI policy that was approved by the Union Govt.? – 17 sectors

Explanation: Broadly, the Railway Ministry is putting up for private participation projects that are expected to be financially remunerative and on which construction work has not started. The Railways has sanctioned projects running into lakhs of crores on which work has not started because of dearth of funds.

………………………………………………………………………………………

9) The Union Govt. on 10 November 2014 unveiled the draft Civil Aviation Policy. Which two PSU stakeholders in aviation sector are proposed to be corporatised and listed on stock exchanges as listed in this draft? – Airports Authority of India (AAI) and Pawan Hans Helicopters Limited (PHHL)

Explanation: The draft Civil Aviation Policy was unveiled by Union Civil Aviation Minister Ashok Gajapathi Raju. The draft would now be open for wider consultation with all stakeholders and is expected to be implemented by January 2015. It proposes to corporatise AAI and PHHL so as to improve transparency and efficiency of these two PSU entities. An in-house expert committee for suggesting road map of Air India’s revival has also been proposed. The draft also proposes to enhance regional air connectivity, develop six major metro airports as international hubs, create more airports through PPP mode, rationalise jet fuel cost, promote air cargo, MRO and helicopter operations and improve passenger facilitation.

………………………………………………………………………………………

10) The Union Govt. launched a modified Direct Benefit Transfer of LPG (DBTL) scheme in how many districts on 15 November 2014? – 54

Explanation: Under this modified DBTL scheme, LPG consumers who have not yet availed the benefit will be able to get cash subsidy amount transferred into their accounts to buy Liquefied Petroleum Gas (LPG) cylinders at market price. Every time a domestic LPG consumer books a cylinder the government will transfer Rs. 568 to the customers’ bank account so that the money would be there in the account before gas reaches their homes. Each household is entitled to get 12 subsidized cylinders a year. So those who have already exhausted the quota will not get any subsidy this year. This scheme will be implemented in the rest of India on 1 January 2015. Post implementation of this scheme India’s LPG subsidy burden of Rs 48,000 crore is expected to come down by 15%. The Aadhaar linked DBTL scheme was launched on 1 June 2013 and finally covered 291 districts. The government has comprehensively reviewed the scheme and after examining the difficulties faced by the consumer substantively modified the scheme prior to the launch.

21 Nov, 2014

1) The Reserve Bank of India (RBI) during November 2014 asked banks to put in place preventive measures in view of the rise in the number of cheque related fraud cases. What were the important measures recommended by the RBI in this issue?

- Provision of an SMS alert to payer/drawer when cheques are received in clearing

- Provision of alerting customers by a phone call and get the confirmation from the payer/drawer in case of large value cheques

- Ensuring 100% implementation of CTS (cheque truncation system) in clearance

- Ensuring complete KYC-compliance in clearance of cheques

In its notification, the RBI said that the rise in the number of cheque related fraud cases is a matter of serious concern. It is evident that many of such frauds could have been avoided had due diligence been observed at the time of handling and/or processing the cheques and monitoring newly opened accounts.

…………………………………………………………

2) New restricted free monthly ATM usage regime came into effect in 6 metro cities of the country from 1 November 2014. Under this regime the number of mandated free transactions for savings bank account holders at other bank ATMs located in six metros has been reduced from five to ……..per month – Three

Explanation: This restricted free monthly ATM usage regime came into effect in country’s 6 metro cities Mumbai, New Delhi, Chennai, Kolkata, Bengaluru and Hyderabad. The choice of 6 metros for introducing this regime was made primarily due to well-served payment infrastructure available here. This reduction in the number of mandated free transactions will, however, not apply to customers having no-frills/small/Basic Savings Bank Deposit Account (BSBDA) type of accounts as well as for transactions done by savings bank account holders at ATMs situated outside these six metro centres. Banks are also free to offer free transactions above this mandated limit.

…………………………………………………………

3) During October 2014 which bank became the second after United Bank of India to tag Vijay Mallya-owned Kingfisher Airlines (KFA) as a wilful defaulter? – UCO Bank

Explanation: UCO Bank is amongst the consortium of 17 banks that have a total exposure of Rs. 6,500 crore in KFA. While the consortium is led by SBI, UCO on its part is said to have lent Rs. 300 crore. The grounded airline was earlier declared a wilful defaulter by United Bank of India. According to Reserve Bank of India’s (RBI) guidelines a wilful defaulter is one who has the capacity to repay but chooses not to do so. The money borrowed is being used for purposes other than for which it was taken.

…………………………………………………………

4) What will the base year for computation of India’s GDP data from January 2015 as announced by the National Statistical Commission recently? – 2011-12

Explanation: The base year for computation of country’s GDP was 2004-05 till now. This change in base year is being implemented so as to take into account the structural changes which have taken place in the economy and also to include more sectors in GDP computation which were not included till now. This would be sixth time that the base year will be changed since 1948-49 was chosen as the first base year for computing country’s GDP estimates.

…………………………………………………………

5) Which country’s central bank surprised global financial markets on 31 October 2014 by expanding its massive stimulus spending, which resulted in rally in global stock markets and India’s Sensex hitting an all-time high on the day? – Japan

Explanation: Bank of Japan (BOJ), the central bank of Japan announced its decision to buy more assets as a preemptive strike to keep policy on track. The bank would accelerate purchase of Japanese government bonds to increase its holding annually by ¥30 trillion ($725 billion) and triple its purchases of exchange-traded funds and real-estate investment trusts. But this move of BOJ was criticized by numerous economists who wondered if pushing even more money into the financial system would be effective as long as consumer confidence continues to worsen and demand remains weak. The BOJ’s move stands in marked contrast with the Federal Reserve, the central bank of United States, announced closing its monthly bond purchase programme on 29 October 2014.

…………………………………………………………

6) Which private-sector bank was the only banking entity from entity to be recognised by the World Economic Forum (WEF) as a “Global Growth Company” (GGC) for 2014? –RBL Bank (Formerly known as Ratnakar Bank Limited)

Explanation: 17 companies from India were recognised as Global Growth Company by WEF as notified by it on 5 November 2014. RBL Bank, headquartered at Kolhapur (Maharashtra), is the only banking entity out of these 17 companies from India, which have been described as region’s most dynamic and high-growth companies by the WEF. Bandhan Financial Services, the micro-finance entity which has won the banking license to operate banking services in the country, was also among these 17 entities. Other prominent entities in this list are Sobha Developers, MakeMyTrip, JustDial, Finolex, FlipKart, InterGlobe Enterprises, Radikal Foods, 4G Identity Solutions and Transasia Bio-Medicals.

…………………………………………………………

7) Who took over as the Secretary Economic Affairs on 31 October 2014 to complete the official-level makeover of Finance Ministry? – Rajiv Mehrishi

Explanation: Rajiv Mehrishi succeeded Arvind Mayaram who was shifted to Ministry of Minority Affairs on 30 October 2014. Earlier on 16 October 2014 Arvind Subramaniam joined as the new Chief Economic Advisor.

…………………………………………………………

8) Who has been appointed as the new Financial Services Secretary by the Union Govt. on 3 November 2014? – Hasmukh Adhia

Explanation: Hasmukh Adhia replaces G S Sandhu, who was transferred as the new Chairman of National Authority for Chemical Weapon Convention (NACWC). Sandhu is the second Secretary among five Secretaries in the Finance Ministry who has been shifted after Arvind Mayaram in last few days. Adhia is a 1981-batch Indian Administrative Service (IAS) officer of Gujarat cadre and is presently posted in Gujarat. After this reshuffle, the General Budget for 2015-16 will be presented by new team of Secretaries with Rajiv Mehrishi as Economic Affairs Secretary (who is also likely to be nominated as new Finance Secretary because of his seniority), Expenditure Secretary Ratan Watal, Revenue Secretary Shaktikantha Das, Financial Services Secretary Adhia and Disinvestment Secretary Aradhana Jauhri with Chief Economic Advisor Arvind Subramanian.

…………………………………………………………

9) Who was appointed as the new Chairperson of the National Institute of Public Finance and Policy (NIPFP) recently? – Vijay Kelkar

Explanation: Vijay Kelkar was the former Chairman of the 13th Finance Commission and he succeeded former PMEAC chairman C. Rangarajan. National Institute of Public Finance and Policy (NIPFP) is a think tank for doing applied research in the field of public finance and is based in New Delhi.

…………………………………………………………

10) Who was named as the most-powerful woman in business in India by ‘Fortune Magazine in a list released on 8 November 2014? – Arundhati Bhattacharya, Chairperson of SBI

Explanation: Arundhati Bhattacharya is heading India’s largest banking group – the State Bank of India (SBI). Bhattacharya made to number one spot due to her relentless fight against bad loans. Since she took over a year or so ago, she has improved assets quality, cut costs and recapitalised SBI. ICICI Bank’s Chanda Kochhar and Shikha Sharma of Axis Bank follow Bhattacharya at the second and the third place respectively. The other women who figure in the top 10 are Zia Mody Co-founder AZB Partners; Mallika Srinivasan CEO of TAFE and Aruna Jayanthi CEO of Capgemini India; Preetha Reddy, MD, Apollo Hospital Enterprise; Kiran Mazumdar Shaw chairperson and MD at Biocon and Shobhana Bhartia, chairperson, HT Media.

02 Nov, 2014

1) The Reserve Bank of India (RBI) on 21 October 2014 asked the banks to take a step against bank accounts of customers who have not complied with KYC requirements despite repeated reminders. What step these banks have been asked to take? – Partially freeze such accounts in a partial manner

Explanation: The RBI, while imposing this partial freezing, advised the banks to ensure that the option is exercised after giving due notice of three months initially to the customers and followed by a reminder for further period of three months. If the accounts are still KYC non-compliant after six months of imposing initial ‘partial freezing’, banks may disallow all debits and credits from/to the accounts, rendering them inoperative. Further, it would always be open to the bank to close the account of such customers. Meanwhile, the account holders can revive accounts by submitting the KYC documents as per instructions in force.

………………………………………………………………………….

2) What is the name of the China-backed Asian infrastructure bank that was launched on 24 October 2014 and is seen as a challenge to the World Bank (WB) and Asian Development Bank (ADB)? – Asian Infrastructure Investment Bank (AIIB)

Explanation: The AIIB was launched in Beijing at a ceremony attended by Chinese Finance Minister Lou Jiwei and delegates from 21 countries including India, Thailand and Malaysia. The MOU for the proposed bank was signed on this occasion. China is set to be its largest shareholder with a stake of up to 50%. However, three major countries, Australia, Indonesia and South Korea, were absent from this launch ceremony. AIIB, which is expected to start its operation from 2015, is being seen as the new rival to Western-dominated multilateral lenders. The main objective of AIIB will be to give project loans to developing nations.

………………………………………………………………………….

3) The Union Government sacked the heads of six Public Sector Unit (PSU) banks on 27 October 2014. This action was taken after submission of a report by a high-level committee in this issue that stated about irregularities being found in the selection process of the Chairman and Managing Directors (CMDs) of these banks. The CMDs who were sacked were associated with which six PSU banks? – Bank of Baroda, Canara Bank, Indian Overseas Bank, Oriental Bank of Commerce, United Bank and Vijaya Bank

Explanation: The probe into appointment of CMDs in PSU banks was ordered following the arrest and termination of Syndicate Bank CMD SK Jain for alleged graft during September 2014. Following this the Finance Ministry had set up a committee comprising Expenditure Secretary, RBI Governor and Secretary School Education to examine the selections to six PSU banks. The government has now scrapped the selection process adopted during the UPA Govt. and decided to fill vacancies of 8 posts of CMDs and 14 posts of Executive Directors through a fresh process involving RBI Governor or his nominee.

………………………………………………………………………….

4) Which country was rated as the most bullish consumer market in the world in the Nielsen Global Consumer Confidence Index for third quarter of 2014 that was released on 29 October 2014? – India

Explanation: India was given 126 points, a drop of 2 points from previous quarter, in this index that was conducted between 13 August and 5 September 2014 and covered more than 30,000 consumers across 60 markets. The overall Global Consumer Confidence Index rose 1 point in the third quarter to 98. Australia saw the biggest increase in confidence index from the previous quarter, by 12 points, followed by Slovenia with a 9 point increase and Thailand with 8 points. In overall picture India was followed closely by Indonesia (125 points), the Philippines (115 points), Thailand (113 points), UAE (112) and China (111).

………………………………………………………………………….

5) The European Central Bank (ECB) recently conducted a landmark health check of the banks of the Euro zone to ascertain real condition of the banking industry. Which country performed worst in this test with nine of its banks falling short and two still needing to raise funds? – Italy

Explanation: Italian bank Monte dei Paschi had the largest capital hole to fill at €2.1 billion as revealed in this test. The ECB found the biggest problems in Italy, Cyprus and Greece but concluded that banks’ capital holes had since chiefly been plugged, leaving only a modest €10 billion to be raised. The test was designed to mark a clean start before the ECB takes on supervision of the banks from November 2014. The exercise provided the clearest picture yet of the health of the Euro Zone’s banks more than 7 years after the eruption of a financial crisis that almost bankrupted a handful of countries and threatened to fracture the Euro Zone.

………………………………………………………………………….

6) The Union Finance Ministry on 30 October 2014 issued new austerity measures in view of lower revenue realization. These measures included cut in non-plan expenditure and ban on creation of new posts. How much reduction in non-plan expenditure had been proposed? – 10%

Explanation: An office memorandum issued by the Expenditure Department of the Finance Ministry stated that for the year 2014-15, every Ministry/Department shall affect a mandatory 10% cut in non-plan expenditure which will exclude interest payment, repayment of debt, defence capital, salaries, pension and Finance Commission grants to the States. The Ministry also made it clear that Government officials will not travel in first class. These measures have been announced after indirect tax collection grew mere 5.8% during first six months of the current fiscal against the budgeted target of 25.8%.

………………………………………………………………………….

7) Which bank won the IDRBT Banking Technology Excellence award for 2013-14 in four out of total five categories in the mid-sized lenders segment? – Federal Bank

Explanation: Kerala-based Federal Bank was adjudged as the ‘best bank’ for use of Technology for Financial Inclusion, Social Media and Mobile Banking, Business Intelligence Initiatives and for Best IT Team, becoming the bank to have won the maximum number of awards for 2013-14. Karur Vysya Bank bagged the Best Bank Award for Business Intelligence Initiatives among small banks. The awards were presented to the winners at a function held in Hyderabad on 1 October 2014 by RBI Governor Raghuram Rajan in Hyderabad. Instituted in 2001, the IDRBT Banking Technology Excellence Awards recognise and honour the best innovative use of information technology to enhance levels of customer service.

………………………………………………………………………….

8) Aditya Birla Financial Services Group recently signed a memorandum of understanding (MOU) with which overseas entity to enter the health insurance market of India? – MMI Holdings Ltd of South Africa

Explanation: The Aditya Birla Group currently operates in the life insurance segment through Birla Sun Life Insurance (BSLI). BSLI is a joint venture with the Canada-based Sun Life Financial Inc. Aditya Birla Financial Services Group and MMI Holdings will enter into a formal joint venture in which the foreign partner will hold 26% stake, which is the maximum holding allowed as per the existing foreign direct investment norms in the sector.

………………………………………………………………………….

9) Chinese e-commerce giant Alibaba Group Holding Ltd changed the name of its Alipay financial services unit as announced on 16 October 2014. What is the new name of this financial services unit? – Ant Financial Services Group

Explanation : Alibaba, the world’s largest e-commerce company, presently processes roughly half of China’s e-commerce transactions through this financial unit. The company has been aggressively offering new financial services around Alipay, including a money market fund for consumers, a mobile payment app and even a new private bank that was recently approved by the Chinese government.

………………………………………………………………………….

10) Who was selected as the new Chairman of the Central Board of Excise and Custom (CBEC)? – Kaushal Srivastava

Explanation: Kaushal Srivastava a 1978 batch Indian Revenue Service (IRS) officer and senior-most in the board after the present chairperson, is at present Member (budget) with additional charge of computerisation and vigilance. He will replace JM Shanti Sundharam, who is retiring on 31 October 2014. CBEC is the apex policy making body of indirect taxes in India.

19 Oct, 2014

1) The Reserve Bank of India (RBI) on 13 October 2014 came out with an additional criterion for classifying an urban co-operative bank (UCB) as financially sound and well managed (FSWM). What is this additional criterion? – Implementation of Core Banking Solution (CBS)

Explanation: Till now the UCBs were classified as FSWM banks if they fulfilled criteria such as capital to risk weighted assets ratio of not less than 10%, gross non-performing assets (NPAs) of less than 7% and net NPAs of not more than 3%. The new criterion of CBS implementation would henceforth be considered for processing applications received from UCBs for opening of on-site/off-site / mobile ATMs, applications under Annual Business Plans, extension of area of operation, shifting of premises and all other permissions from RBI. The other criteria prescribed by the RBI for classifying a UCB as financially sound and well managed are: net profit for at least three out of the preceding four years, subject to it not having incurred a net loss in the immediate preceding year; no default in the maintenance of cash reserve ratio / Statutory Liquidity Ratio during the preceding financial year; sound internal control system with at least two professional directors on the Board; and regulatory comfort.

………………………………………………………………………………..

2) Who won the Nobel Prize for Economics for 2014 as announced by the Royal Swedish Academy of Sciences on 13 October 2014? – French economist Jean Tirole

Explanation: Tirole was chosen for his analysis of market power and regulation. The Academy commended him for the way he presented his theory clarifying how to understand and regulate industries with a few powerful firms. The Nobel Prize for Economics is officially called the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel and was not part of the original group of awards set out in his will of 1895.

………………………………………………………………………………..

3) According to reports appearing in media during October 2014, the Union Govt. is on its way for a major overhaul of the current monetary policy framework. Under this the govt. will specify specific inflation related targets for the Reserve Bank of India (RBI) instead of the RBI setting a target for itself. This decision is a big departure from the recommendations of a recent expert committee of the RBI, which had recommended that the monetary policy decision-making should be vested with a monetary policy committee, chaired by the RBI Governor. Who headed this RBI committee? – Urjit R. Patel, Deputy Governor of the RBI

Explanation: Union Government had decided to set targets for the RBI as it feels that it is best that inflation targets are set by the governments elected by the people instead of the bureaucrats. It is worth mentioning that the Urjit Patel Committee (The Committee on Strengthening Monetary Policy Framework) in its recommendations had also stated that the RBI should adopt the new Consumer Price Index (CPI) as the measure of the nominal anchor for

monetary policy and set the target CPI inflation level at 4 per cent (+/- 2%) to be achieved through its monetary policy tools.

………………………………………………………………………………..

4) Who was conferred with the Best Central Bank Governor award for 2014 by Euromoney magazine on 10 October 2014? – Raghuram Rajan, Governor of Reserve Bank of India

Explanation: This prestigious award was given to him for the tough monetary measures adopted by him to battle the storm ravaging the deficit-ridden Indian economy in the recent market crisis. In January 2003, the American Finance Association had awarded Raghuram Rajan the inaugural Fischer Black Prize for the best finance researcher under the age of 40.

………………………………………………………………………………..

5) Who was appointed as the next Chief Economic Adviser on 16 October 2014? –Arvind Subramanian

Explanation: Arvind Subramanian was earlier a senior fellow at the Washington-based Peterson Institute for International economics. He is pronouncedly pro-market and has in the past argued for quicker subsidy reforms, fast introduction of GST, and faster deficit reduction than the temporal target set by the government. The post of Chief Economic Adviser has been lying vacant since Raghuram Rajan left the Finance Ministry to join the Reserve Bank of India as the Governor more than a year ago.

………………………………………………………………………………..

6) Which prominent real estate company was barred by Indian capital market regulator SEBI from accessing capital markets for three years on 13 October 2014? – DLF Limited

Explanation: DLF Limited along with its founder-chairman K.P. Singh and 5 top executives were barred from accessing India’s capital markets for three years. This penalty was imposed due to some non-disclosure violations related to DLF’s initial public offering (IPO) of 2007. SEBI had investigated whether the company had disclosed in its IPO documents the names of all of its subsidiaries and the legal cases pending against those companies.

………………………………………………………………………………..

7) What is the name of the new global service launched by the World Bank on 9 October 2014 which aims at mobilising the private sector to help tackle the massive infrastructure deficit facing developing countries? – Global Infrastructure Facility (GIF)

Explanation: GIF was launched by World Bank President Jim Yong Kim at Washington D.C. This facility basically aims to ensure that billions of dollars are channelised to develop world-class infrastructure in emerging markets like India and developing economies. Through GIF, the World Bank plans to work with regional banks and financial entities like Asian Development Bank (ADB), the New Development Bank (NDB) of BRICS countries and the proposed Asian Infrastructure Investment Bank (AIIB).

………………………………………………………………………………..

8) According to media reports, the Reserve Bank of India (RBI) has ordered its supervision team to monitor trading in debt markets by companies. This is the strongest expression of concern shown by the RBI on this issue. What is the primary reason for this move of the RBI? – Reports that many companies are building large trading positions in debt and currency markets

Explanation: Trading in debt markets by companies could pose risks to financial market stability as it exposes the companies to greater price volatility. However, some companies indulge in this trading as this can be a lucrative extra source of profits for them. Companies are legally allowed to invest in markets in India, but it has seldom raised RBI’s concerns until recently, when they have become much more active players.

………………………………………………………………………………..

9) India’s wholesale price inflation for September 2014 eased to 2.38% as announced by the Union Govt. on 14 October 2014. This was the lowest WPI-based inflation since when? – Since October 2009

Explanation: The wholesale price index (WPI)-based inflation for September 2014 was down to 2.38% mainly due to lowered prices of food and fuel. In August 2014, wholesale prices rose by 3.74%. The inflation based on consumer price index (CPI) for September 2014 was 6.46%, which was the lowest since the latest data series started in January 2012.

………………………………………………………………………………..

10) Prime Minister Narendra Modi on 16 October 2014 kicked-off an overhaul of archaic labour rules in the country by launching a series of ambitious steps. What was the name of this programme which integrates numerous labour related reforms? –“Pandit Deendayal Upadhyay Shramev Jayate Karyakram”

Explanation: Pandit Deendayal Upadhyay Shramev Jayate Karyakram was launched to implement a series of labour reforms. This includes measures to end the so-called ‘Inspector-Raj’ with a system that is expected to sharply curb the element of discretion with labour inspectors and a single window compliance process.

Important initiatives under “Pandit Deendayal Upadhyay Shramev Jayate Karyakram” are –

- Shram Suvidha Portal for single-window clearance of business proposals. Shram Suvidha Portal simplifies compliance of 16 labour laws, through a single online form.

- Web-based labour inspection system for random selection of units for inspection

- Apprentice Protsahan Yojana and the Effective Implementation of revamped Rashtriya Swasthya Bima Yojana (RSBY) for labour in the unorganized sector

………………………………………………………………………………..

– Universal account number for Provident Fund with easy portability of PF accounts

– Appointment of National Brand Ambassadors of Vocational Training to instill pride and confidence in ITI students

12 Oct, 2014

1) What is the share split that was agreed by the central board of the State Bank of India (SBI) on 24 September 2014? – 1:10

Explanation: A share split of 1:10 means one equity share of SBI will now be split into 10 shares. This stands for reducing the face value of equity shares of the bank from Rs. 10 per share to Rs. 1 per share and to increase the number of issued shares in proportion thereof. The stock split is expected to increase investor participation in the stock. Earlier during September 2014, Punjab National Bank and ICICI Bank had also announced share split. Both the banks have approved sub-division of one equity share into five.

……………………………………………………………….

2) Which two Union Territories of the Indian Union achieved a unique milestone of 100% banking coverage as revealed in a meeting of Finance Ministry on 1 October 2014? – Puducherry and Chandigarh

Explanation: Puducherry and Chandigarh achieved this milestone by providing all the households with at-least one account. This was revealed in the meeting that the Finance Ministry held with representatives of public and private sector banks to review the progress made in the implementation of Pradhan Mantri Jan Dhan Yojana (PMJDY), the flagship financial inclusion programme launched on 28 August 2014.

……………………………………………………………….

3) During September 2014 international ratings agency Standard & Poor’s (S&P’s) revised the rating outlooks on 11 Indian banks and financial institutions to stable from negative. However, the outlook was still kept negative for two banks. Which two banks are these? – Indian Overseas Bank (IOB) and Syndicate Bank

Explanation: The negative outlook for Indian Overseas Bank (IOB) and Syndicate Bank means a possible weakening in these banks’ asset quality and capitalisation. The 11 banks whose rating outlooks were revised from negative to stable are – ICICI Bank, HDFC Bank, Axis Bank, Kotak Mahindra Bank, State Bank of India, Bank of India, IDBI Bank Ltd, Indian Bank, Union Bank of India, IDFC and Kotak Mahindra Prime.

……………………………………………………………….

4) What is the new name of MCX Stock Exchange (MCX-SX) that was approved by capital market regulator Securities and Exchange Board of India (SEBI) during September 2014? – Metropolitan Stock Exchange of India (mSXI)

Explanation: The board of MCX-SX approved the proposal for rechristening the exchange few months ago and subsequently an application was submitted to the SEBI. The name change is a part of the turnaround strategy to give the exchange a new identity and disassociate itself from the scam-tainted promoter Financial Technologies.

……………………………………………………………….

5) According to a report released by international ratings firm Moody’s during September 2014, how much fund would be needed by the major public sector banks of India for the full implementation of Basel III norms by year 2019? – Between Rs 1,50,000 crore to Rs 2,20,000 crore ($26-$37 billion)

Explanation: The rating agency estimated that public sector Indian banks that it rates could need that external capital, assuming a moderate recovery in India’s GDP growth, and a gradual decline in non-performing loans from current levels. This report by Moody’s rated 11 PSU banks which represent around 62% of net loans in the Indian banking system. Basel III raises the minimum required capital levels for both total Tier 1 to 7.0% and Common Equity Tier 1 (CET1) capital to 5.5%, and banks will also need to meet a Capital Conservation Buffer to pay dividends. That will pressure the Indian public sector banks, as low capital levels remain a key credit weakness.

……………………………………………………………….

6) The Reserve Bank of India (RBI) presented its 4th Bi-monthly Monetary Policy review on 30 September 2014. As was widely expected, RBI kept the major rates unchanged as the central bank kept its focus on tackling inflation. What are the major rates and projections coming out of this review?

- GDP growth rate projected at 5.5% for current fiscal

- The high growth rate during Q1 (Apr-June 2014) may not be sustained in Q2 and Q3

- Consumer Price Index (CPI)-based inflation projected to remain at 8% by Jan 2015 and 6% by Jan 2016

- Repo rate (short term lending rate) unchanged at 8%

- Cash Reserve Ratio (CRR) unchanged at 4%

- Statutory Liquidity Ratio (used for unlocking banking funds) retained at 22%

- The liquidity rate under Export Credit Refinance (ECR) reduced from 32% to 15% (w.e.f. 10 October 2014)

……………………………………………………………….

7) The new Monetary Policy Framework Agreement, which aims to change the monetary policy formulation and will also focus on inflation targeting, is proposed to be signed by which date as announced by the Finance Ministry recently? – 1 February 2015

Explanation: The proposed framework is based on a combination of recommendations by FSLRC (Financial Sector Legislative Reforms Commission) and the Urjit Patel Committee, along with inputs from the Rajan Panel on Financial Sector Reforms. The Finance Ministry is presently seeking the comments of the RBI on this framework. The proposal will then be placed in the public domain before finalising the agreement. The endeavour is to sign the agreement by 1 February 2015, to show that one of the key Budget announcements has been implemented. The establishment of a modern monetary policy framework was announced in the Union Budget 2014-15 presented by Union Finance Minister Arun Jaitley on 10 July 2014.

……………………………………………………………….

8) In a strongly-worded order, Indian capital market regulator SEBI during September 2014 barred as many as 13 entities from the securities market for varying periods ranging from three to five years. What was the charge on these 13 entities? –Manipulation of global depository receipts (GDRs) by these entities

Explanation: A detailed probe by SEBI found that these entities actively traded in the shares of GDR-issuer companies and thereby facilitated the sub accounts of Foreign Institutional Investors (FIIs) in selling those shares in Indian markets. The 13 entities are – Basmati Securities, Oudh Finance and Investment, Alka India, SV Enterprise/Sarfaraz Khan Pathan, Ashok Panchariya, Madanlal Girdharilal Bugualiya, Indra Varun Trade Impex, Delight Financial Advisors, Vinod Amrutlaal Naai, Newgen International, Excel Paints, Cherry Cosmetics and Edelweiss Estate.

……………………………………………………………….

9) The Union Govt. during September 2014 constituted a committee to recommend strategies on restructuring the Railway Board. Who is heading this committee? – Bibek Debroy

Explanation: Bibek Debroy is the leading economist and has been associated with the Centre for Policy Research (CPR). The committee basically has to suggest ways to restructure the board to ensure faster decision-making. It also has to suggest ways to ensure objectivity in decision-making. Additionally, it has to recommend ways to raise finances. Other members on the panel are Gurcharan Das, Ravi Narain (former CEO of National Stock Exchange), KM Chandrashekhar (former Cabinet Secretary), Partha Mukhopadhyay (Centre for Policy Research) and Rajendra Kashyap, former Finance Commissioner of Railways.

……………………………………………………………….

10) Which act associated with setting up of a tribunal was struck down by the Supreme Court through its order delivered on 25 September 2014? – National Tax Tribunal Act

Explanation: In its order delivered on 25 September 2014, a Constitutional Bench of the Supreme Court said that Parliament could not take away the powers of the judiciary and rest them in a tribunal which is not a court in its characteristic. A tribunal was set up in 2005 under the National Tax Tribunal Act. This tribunal was set up to decide tax-related cases by taking away jurisdiction of high courts in such matters. However, the 2005 law was stuck in litigation in high courts. All cases were transferred to the Supreme Court for a final decision. The Act allowed the executive extensive control with regard to appointments of members and procedure of the tribunal. The tribunal was envisaged to function like National Green Tribunal (NGT) in the taxation field.

10 Oct, 2014

Pradhan Mantri Jan Dhan Yojana (PMJDY) launched

The ambitious Pradhan Mantri Jan Dhan Yojana (PMJDY) was launched formally on 28 September 2014 by the Prime Minister Narendra Modi at function held at Vigyan Bhawan in New Delhi. The scheme promoted mainly to end financial untouchability in India saw the opening of an estimated 1.5 crore bank accounts across the country on this single day.

Following are the main benefits for account holders of PMJDY

a) A RuPay debit card for every account holder

b) Rs. 1 lakh accident insurance cover

c) Rs. 5,000 overdraft facility

…………………………………………………………………………………

KPMG hired for validation of PMJDY

International professional services firm KPMG was hired by the Union Finance Ministry to undertake a validation exercise of the number of basic bank accounts opened by the banks under the Pradhan Mantri Jan Dhan Yojana (PMJDY). KPMG would provide some comfort to the Finance Ministry that the numbers submitted by the banks pertaining to PMJDY were accurate and reflected the true picture.

…………………………………………………………………………………

SBI launches its 1st first multi-currency international debit card

State Bank of India (SBI) on 8 September 2014 launched its first multi-currency international debit card to allow consumers to use a single card to pay in multiple currencies. This card launched in a tie-up with MasterCard would, at present, enable customers to load four international currencies in this card. These 4 currencies include US dollar, euro, Great Britain pound and Singapore dollar. More currencies will be added going forward as the card has the facility to be loaded up to 12 currencies.

…………………………………………………………………………………

S.S. Mundra becomes fourth Deputy Governor of RBI

Subhash Sheoratan Mundra (S.S. Mundra) took over as the fourth Deputy Governor of the Reserve Bank of India (RBI) during July 2014. He took the charge as the Deputy Governor of the RBI on 31 July 2014. Three other deputy governors of the RBI are Urjit Patel, HR Khan, and R. Gandhi. Before taking this responsibility at RBI, Mundra was the Chairman and Managing Director (CMD) of the public-sector bank – Bank of Baroda (BOB). Mundra filled the vacancy created by the retirement of K.C. Chakrabarty in April 2014, two months before his five-year tenure was come to an end.

…………………………………………………………………………………

ICICI Bank launches ‘Cardless Cash Withdrawal’

Private-sector bank ICICI Bank announced its unique ‘Cardless Cash Withdrawal’ service on 10 September 2014, which allows its customers to transfer money from their account to anyone in India with a mobile number. Under the ‘Cardless Cash Withdrawal’ service, the recipient can withdraw money round the clock without using a debit card from over 10,000 ATMs of ICICI Bank across the country. One can do this even without having a bank account of any bank. However, the sender needs to be an ICICI Bank savings account holder. The facility can be initiated by any ICICI Bank savings account customer (sender) by logging into internet banking of ICICI Bank website.

…………………………………………………………………………………

SBI tops in India’s mobile banking

State Bank of India (SBI) claimed first spot in the mobile banking segment in the country, as reported in the latest data released by the RBI on 15 September 2014. SBI’s total number of mobile banking users stood at 1.15 crore. ICICI Bank stood second with 19.5 lakh users and was followed by Axis Bank (13.6 lakh), Yes Bank (4.3 lakh) and HDFC Bank (3.5 lakh). The number of SBI’s mobile banking users is larger than the mobile banking customer base of large banks in the West. Only a couple of Chinese banks have more mobile banking customers. SBI’s emergence as country’s largest mobile banking operator came as a surprise as traditionally new generation private banks and foreign banks have been the early adopters of alternative platforms like mobile banking.

…………………………………………………………………………………

Securities Law (Amendment) Bill passed

Indian Parliament on 12 August 2014 passed the Securities Law (Amendment) Bill, 2014, which will empower SEBI to act against ponzi operators and market manipulators more effectively. The bill was passed by the Lok Sabha on 6 August 2014 and the Rajya Sabha passed it on 12 August 2014. It empowers SEBI to act against ponzi operators and market manipulators more effectively through search and seizure, attachment orders and recovery proceedings and with access to call data records. This marks a dilution from the direct powers granted to SEBI Chairman through as many as three ordinances in the past one year to authorise search and seizure operations. Under the act constituted (with the passing of this bill), a special SEBI court would be set up in Mumbai to fast track prosecution proceedings launched by SEBI, as also to clear search and seizure operations proposed by SEBI.

…………………………………………………………………………………

RBI reduces number of mandated free transactions in 6 metro cities

The Reserve Bank of India (RBI) on 14 August 2014 announced its decision to reduce the number of mandated free transactions for savings bank account holders at other bank ATMs located in six metro cities from five to three per month. This reduction would come into effect from 1 November 2014. The six metro cities (Mumbai, New Delhi, Chennai, Kolkata, Bengaluru and Hyderabad) were chosen first for reducing the number of mandated free transactions as they are well-served in terms of payment infrastructure. This reduction in the number of mandated free transactions will, however, not apply to customers having no-frills/small/Basic Savings Bank Deposit Account (BSBDA) type of accounts as well as for transactions done by savings bank account holders at ATMs situated outside these six metro cities. Banks are also free to offer free transactions above this mandated limit.

…………………………………………………………………………………

Forensic Audit of Dena Bank and Oriental Bank of Commerce

On 20 August 2014 the Finance Ministry ordered a forensic audit to be done at the branches of two banks – Dena Bank and Oriental Bank of Commerce (OBC) in view of the reports of misappropriation of funds worth Rs. 436 crore. According to media reports, a Mumbai-based branch manager of Dena Bank mobilised fixed deposits (FDs), using middlemen, to the tune of Rs 256.5 crore from seven corporates, while in the case of OBC, misappropriation of funds to the tune of Rs. 180 crore was reported. In the wake of rising scams in public sector banks, the Finance Ministry is looking at various steps, including strengthening of risk.

…………………………………………………………………………………

RBI releases Charter of Customer Rights

The Reserve Bank of India (RBI) on 22 August 2014 released the charter of customer rights, which seeks to provide the right to be treated with courtesy to both the customer and the financial services provider. Following are the important clauses of this charter-

- The customer should not be unfairly discriminated against on grounds such as gender, age, religion, caste and physical ability when offering and delivering financial products by the financial services provider

- The key risks associated with the financial product as well as any features that may especially disadvantage the customer should be made known to him/her by the financial services provider

- The financial services provider should provide customers with product terms and conditions that are in simple language, easily understandable, and with sufficient information that the customer could be reasonably expected to make an appropriate choice of product

- The financial services provider may, however, have certain special products which are specifically designed for members of a target market group or may use defensible, commercially acceptable economic rationale for discriminating between customers

…………………………………………………………………………………

Vijaya Bhaskar Committee on Shadow Banking

The Reserve Bank of India (RBI) on 18 August 2014 constituted a 15-member inter-regulatory committee to monitor the growing phenomenon of shadow banking. P. Vijaya Bhaskar, Executive Director of RBI, has been appointed as the Chairman of this committee. Shadow banking refers to banking-like activity by non-banking finance companies (NBFCs) that remain outside the regulatory net. They generally operate as intermediaries between investors and borrowers. The role of this newly constituted committee will be to find out the volume of money in shadow banks, who the investors are and direction of the money flow, etc. Also real estate dealings will be looked into very meticulously by the committee. The 15-member committee comprises of officials of the RBI, Securities and Exchange Board of India (SEBI), Central Economic Intelligence Bureau and the National Housing Bank (NHB).

…………………………………………………………………………………

Syndicate Bank CMD S.K. Jain arrested

S.K. Jain, the Chairman and Managing Director (CMD) of public-sector Syndicate Bank was arrested by the CBI on 2 August 2014 on charges of allegedly accepting a bribe of Rs 50 lakh to enhance the credit limit of some companies. Jain was appointed CMD of state-owned Syndicate Bank in July last year for a period of five years. He was one of the youngest CMDs of a public sector bank and was due to retire in 2020.

09 Oct, 2014

SBI launches sbiINTOUCH branches

State Bank of India (SBI) on 1 July 2014 launched six digital branches across the nation to serve tech-savvy customers. These branches are named sbiINTOUCH. One of such branches in Delhi was inaugurated on this day by Finance Minister Arun Jaitley. These sbiINTOUCH branches will include instant account opening with personalised debit cards, instant loan approvals for education, car and home and remote expert advisors available via video links. The new branches will be located in malls and will be primarily aimed at youth, who look for digital banking.

……………………………………………………………………………………

The Banking and Economics Conclave 2014

The State Bank of India (SBI) organised ‘The Banking and Economics Conclave 2014′, a national level banking conclave, at Mumbai from 17 June 2014. The conclave was organised for the first time and was on the lines of ‘Bancon’, an event organised by Indian Bank’s Association (IBA) each year. It was also the first time that a commercial bank has organised an event of this magnitude.

……………………………………………………………………………………

RBI for sector-wise bank disclosures for advances

The Reserve Bank of India (RBI) on 17 June 2014 asked banks to make sector-wise disclosure of their advances from 2014-15 onwards with a view to encourage them to actively manage exposure to various segments. This direction was based on the recommendations made by the Dr. Nachiket Mor Committee on Comprehensive Financial Services for Small Businesses and Low Income Households. This committee in its report had recommended that banks actively manage their exposures to various sectors, including priority sectors.

……………………………………………………………………………………

IDBI celebrates Golden Jubilee

Public sector financial entity IDBI (formerly called Industrial Development Bank of India) celebrated its 50th anniversary (Golden Jubilee) during July 2014. IDBI was established in 1964 under an Act of Parliament as a wholly owned subsidiary of the Reserve Bank of India (RBI). In 1976, the ownership of IDBI was transferred to the Government of India and it was made the principal financial institution for coordinating the activities of institutions engaged in financing, promoting and developing industry in India. IDBI provided financial assistance, both in rupee and foreign currencies, for green-field projects as also for expansion, modernisation and diversification purposes. During September 2004 the RBI incorporated IDBI as a ‘scheduled bank’ under the RBI Act, 1934. Consequently, IDBI, formally entered the portals of banking business as IDBI Ltd. from 1 October 2004. The commercial banking arm, IDBI BANK, was merged into IDBI in 2005.

……………………………………………………………………………………

BCSBI proposes to put performance ratings of banks in public domain

The performance ratings of banks operating in India would be put on the public domain from next year. Banking Codes Standards Board of India (BCSBI) would share this information in public domain. BCSBI was set up as an independent and autonomous body in 2007 by the Reserve Bank of India (RBI) to ensure that the common consumer of financial services from the banking industry gets what he/she has been promised. BCSBI is rating banks on customer services on five parameters – information dissemination, transparency, customer-centricity, grievance redressal system and customer feedback. Of the 48 banks rated for customer service, only five received high ratings; 25 were rated above average; 17 average; and one below average. The ratings have been shared with the banks. The ratings were given based on a survey conducted by BCSBI across 69 cities, involving 3,000 branches and 6,000 customers.

……………………………………………………………………………………

Revival of Kisan Vikas Patra

The revival of the Kisan Vikas Patra (KVP) was announced in the Union Budget 2014-15 on 10 July 2014. The KVP was discontinued from November 2011 on the recommendation of the Shyamala Gopinath Committee.

……………………………………………………………………………………

TCS becomes first Indian company to cross Rs. 5 lakh crore market capitalization

Tata Consultancy Services (TCS) on 23 July 2014 became the first Indian company to cross market capitalization value of Rs. 5 lakh crore. TCS’s market capitalization crossed 5 lakh crore mark on account of appreciation in the price of TCS scrip following good financial results and record dividend declaration by the company. State-held ONGC’s market cap of around Rs. 3.5 lakh crore is way behind that of TCS. It is worth mentioning that TCS’ market cap is more than the combined market cap of its nearest three rivals – Infosys (Rs 1.90 lakh crore), Wipro (Rs 1.39 lakh crore) and HCL Tech (Rs 1.07 lakh crore).

……………………………………………………………………………………

Kotak Mahindra Bank purchases 5% stake in MCX

Private sector bank Kotak Mahindra Bank agreed to buy a 15% stake in beleaguered Multi Commodity Exchange of India Ltd (MCX), announcement of which pushed the stock value of MCX by more than 10% on 21 July 2014. The commodity market regulator, Forward Market Commission (FMC), had ordered MCX to reduce its promoter- Financial Technologies’ (FT’s) stake from 26 to 2% in December last year after FT was found not fit and proper to own stake in any exchange, following the NSEL crisis. However, since the promoter repeatedly missed the deadline for reducing its stake, the regulator said it would not allow the exchange to issue any new contracts beyond August, unless they did so.

……………………………………………………………………………………

TARC recommends abolishing the post of Revenue Secretary

The Tax Administration Reform Commission (TARC) headed by Parthasarathi Shome in its first report presented during June 2014 recommended abolishing the post of Finance Secretary in the Ministry of Finance. It thus

endorsed the recommendations given by the Raja J Chelliah Committee of 1992 for abolishing this post. Raja J Chelliah was instrumental in bringing about the early reforms to the direct taxation structure.

……………………………………………………………………………………

SEBI brings consultation paper in Crowd Funding

The Securities and Exchange Board of India (SEBI) on 17 June 2014 came out with a consultation paper on crowd funding, an alternative funding source to help start-ups struggling to raise funds. Under this, funding (in small amounts) is sought from multiple investors through a web-based platform or a social networking site for a specific project, business venture or social cause. According to SEBI’s consultation paper SEBI wants the issue fund-raising capped at Rs. 10 crore a year for each start-up. Only national stock exchanges and SEBI-registered depositories are eligible to set up a crowd-funding platform.

……………………………………………………………………………………

IEO recommends scrapping Planning Commission

Independent Evaluation Office (IEO) in its report presented during June 2014, recommended that the Planning Commission should be replaced by a reforms and solution body as it has exceeded the scope of its authority by acting as a control commission. IEO in its report stated that since the Planning Commission has defied attempts to reform it to bring it in line with the needs of a modern economy and the trend of empowering the States, it is proposed that the Planning Commission be replaced.

……………………………………………………………………………………

Rangarajan Panel on studying the methodology of Tendulkar Committee

Rangarajan headed the committee on Tendulkar Committee methodology for estimating poverty, the report of which was submitted to Planning Commission on 1 July 2014. C. Rangarajan, the former chief of Prime Minister’s Economic Advisory Council (PMEAC), submitted the report to planning minister Rao Inderjit Singh. The Planning Commission in May 2012 had constituted the expert group under the then PMEAC chairman C Rangarajan to review the Tendulkar Committee methodology for estimating poverty, following an uproar over the number of poor in the country. The Planning Commission’s estimates had drawn flak in September, 2011 when in an affidavit to the Supreme Court it was stated that households with per capita consumption of more than Rs. 32 in urban areas and Rs. 26 in rural will not be treated as poor.

……………………………………………………………………………………

HR Khan re-appointed as RBI Deputy Governor

Harun Rashid Khan was re-appointed as the Deputy Governor of the Reserve Bank of India (RBI) on 3 July 2014 by the Union Govt. The appointment was made for two years with effect from 4 July 2014 or until further orders, whichever is earlier. Khan was appointed deputy governor in July 2011 for a three-year term, which was set to expire on 3 July.

……………………………………………………………………………………

CONCOR becomes 17th Navratna status company

PSU-company Container Corporation of India Limited (CONCOR) on 23 July 2014 became the 17th Navratna status company. CONCOR is a PSU engaged in providing comprehensive logistics solutions. It has the largest network of 62 inland container depots (ICDs)/container freight stations in India. In addition to providing inland transport by rail for containers, it has also expanded to cover management of ports, air cargo complexes and establishing cold-chain. The Government of India (GoI) holds 61.80% stake in CONCOR (as per the shareholding pattern as on 30 June 2014).

08 Oct, 2014

IDFC Limited and Bandhan Financial Services get banking licences

The Reserve Bank of India (RBI) on 2 April 2014 granted in-principle approval of bank licences to two entities – IDFC Limited and Bandhan Financial Services Private Limited. These two firms pipped to post 23 other applicants, which included some well-known financial and industrial houses like Muthoot Finance, Reliance Capital, Tata Sons, IFCI, Aditya Birla Nuvo, Bajaj Finserv, LIC Housing Finance, L&T Finance Holdings and Shriram Capital. IDFC was established in 1997 and acts as a specialized financial intermediary for infrastructure projects. Bandhan Financial is India’s largest micro finance institution with over 4.5 lakh borrowers and was set up in 2002.

……………………………………………………………………………….

RBI issues its first-ever bi-monthly monetary policy statement

The Reserve Bank of India (RBI) issued its first-ever bi-monthly monetary policy statement on 1 April 2014. Before this the RBI was issuing quarterly monetary policy reviews. Bi-monthly reviews were started so as to have greater control over monetary aspects of country’s economy.

……………………………………………………………………………….

Gandhi appointed new RBI Deputy Governor

Gandhi was appointed as the new Deputy Governor of the Reserve Bank of India (RBI) on 3 April 2014. He was appointed by the Union Govt. for a period of three years. The appointment followed Anand Sinha relinquishing his charge as Deputy Governor in mid-January 2014.

……………………………………………………………………………….

Arvind Mayaram appointed Finance Secretary

The Union Govt. appointed Arvind Mayaram as the new Finance Secretary on 15 April 2014. Before this he was the Economic Affairs Secretary. He replaced Sumit Bose who retired on 31 March 2014.

……………………………………………………………………………….

New Companies Act comes in force from 1 April 2014

The Companies Act, 2013 came into effect from 1 April 2014. It replaced the Companies Act of 1956 which was being followed in the country for decades. Companies Act, 2013 is an Act of the Parliament of India which regulates incorporation of a company, responsibilities of a company, directors and dissolution of a company. The 2013 Act is divided into 29 chapters containing 470 clauses as against 658 Sections in the Companies Act, 1956 and has 7 schedules. The President of India gave his assent to this act during August 2013.

……………………………………………………………………………….

IFC completes its first global rupee bond programme

The International Finance Corporation (IFC) on 11 April 2014 completed its first global rupee bond programme worth $ 1 billion. Washington D.C. headquartered-IFC completed this huge issue in three rounds and the third and final round of bond issue totalling Rs 12 billion (about $ 194 million) was completed on 11 April. Under its global rupee bond programme, IFC has also issued three-year bonds totalling Rs 30 billion and five-year bonds totalling Rs 20 billion. This issue was launched to strengthen India’s capital markets and attract greater foreign investment.

……………………………………………………………………………….

RBI announces relief for loan takers

The Reserve Bank of India (RBI) on 7 May 2014 announced major relief for loan takers of housing, auto and personal loans by directing all the commercial banks not to levy any penalty on pre-payment of loans under floating rate scheme that cover housing, auto as well as personal loans. The RBI advised that banks will not be permitted to charge foreclosure charges/ pre-payment penalties on all floating rate term loans sanctioned to individual borrowers, with immediate effect. Floating loan products include housing, corporate, vehicle and personal loans. During 2012, RBI had barred banks from levying foreclosure charges or pre-payment penalties on home loans on floating interest rate basis.

……………………………………………………………………………….

RBI issues guidelines for minor bank operators

The Reserve Bank of India (RBI) on 6 May 2014 issued the guidelines allowing minors to operate bank accounts independently with a view to promote financial inclusion and bring uniformity in opening of such accounts in banks. In these guidelines it prescribed 10 years as the age for minors to operate bank accounts. According to the guidelines issued by the RBI, minors above 10 years of age can open and operate independently savings bank account and use other facilities like ATM and cheque books.

……………………………………………………………………………….

First co-branded cricket credit card launched

IPL franchisee Delhi Daredevils during May 2014 launched a co-branded cricket credit card in partnership with Ratnakar Bank Ltd, a private sector bank. This was the first time that a commercial bank and a leading cricket

franchise came together to launch a co-branded cricket credit card. The card brings to its cardholders exclusive privileges like meeting and greeting the Delhi Daredevils team, personal and original memorabilia, coaching camps, free match tickets, talk shows, etc.

08 Oct, 2014

RBI extends deadline for exchanging currency notes

The Reserve Bank of India (RBI) on 3 March 2014 extended the deadline for the public to exchange currency notes printed before 2005 up to 1 January 2015. The public would be able to exchange currency notes printed before 2005 by 1 January 2015. The RBI on 22 January 2014 had announced that it would withdraw from circulation all pre-2005 currency notes from 1 April 2014. Post-2005 notes have added security features and help in curbing the menace of fake currency.

RBI extends Basel-III deadline

The Reserve Bank of India (RBI) on 27 March 2014 extended the deadline for implementation of Basel III norms by the Indian banks to 31 March 2019 from the earlier deadline of 31 March 2018. Under this norm Indian banks need to have a core capital ratio of 8% and a total capital adequacy ratio of 11.5% against the present 9%. The norm has been devised to strengthen the regulation, supervision and risk management of the banking sector.

RBI’s Inflation Expectations Survey

The Reserve Bank of India (RBI) during March 2014 launched the 35th round of Inflation Expectations Survey. Under this survey the subjective assessments pertaining to inflation were collected from about 5,000 households across 16 cities. The survey sought qualitative responses from households on price changes (they foresee in general prices as well as prices of specific product groups) in the next three months as well as in the next one year and quantitative responses on current, three-month ahead and one-year ahead inflation rates.

Central Bank of India sells entire stake in CIBIL

Central Bank of India sold its entire stake in credit information provider Credit Information Bureau of India Limited (CIBIL) to Transunion International Inc (TII) during March 2014. Central Bank had 5% stake in CIBIL while TII is the majority shareholder in CIBIL at 27.5%. State Bank of India and ICICI Bank carry 10% each, while rest of 2.5% is with Sundaram Finance Ltd. Among others, Bank of Baroda, Bank of India, Punjab National Bank, Union Bank, Citicorp Finance (India), HSBC, Standard Chartered Bank, Indian Overseas Bank and HDFC Ltd each hold 5% stake in CIBIL.

Union Govt. launch CPSE-ETF

Union Govt. on 18 March 2014 launched the exchange traded fund of Central public sector enterprises (CPSE-ETF) hoping to raise Rs 3,000 crore. The long awaited CPSE-ETF is an open-ended scheme comprising of shares of 10 Central public sector enterprises and it includes ONGC, Coal India Limited, GAIL, Indian Oil Corporation (IOC), Rural Electrification Corporation (REC), Oil India Limited (OIL), Container Corporation of India Limited (CCIL), Power Finance Corporation (PFC), Engineers India Limited (EIL) and Bharat Electronics Limited (BEL). Goldman Sachs India

MF is managing this ETF, which tracks an index fund but trades like a stock on the exchange and is yet another avenue for the Union Govt. for selling its stake in CPSEs.

Union Govt. sells stake in Axis Bank

Union Government on 21 March 2014 sold its 9% stake in private sector Axis Bank. The stake was divested through the Specified Undertaking of UTI (SUUTI), which was formed in 2003 is an offshoot of erstwhile UTI and held 20.72% in Axis Bank. The other promoters of the bank are Life Insurance Corporation, General Insurance Corporation, New India Assurance and National Insurance Company.

Aditya Puri Committee Credit Information Reports

HDFC Bank Chairman Aditya Puri headed the committee on Credit Information Reports (CIRs), which submitted its report to the Reserve Bank of India (RBI) during March 2014. This committee recommended that customers should be given a free copy of their credit profile as it would help in promoting financial discipline among loan seekers. The committee also recommended use of common data formats and a common data quality index that could assist credit institutions in determining the gaps in data.

SREI Infrastructure receives RBI approval for White label ATMs

Infrastructure finance company SREI Infrastructure Finance Ltd during March 2014 received RBI approval to set up a minimum of 9,000 white label ATMs (WLAs) in the next three years in rural India. The company received a certificate of authorisation from the RBI to set up, own and operate a payment system for WLAs effective 25 March 2014. Through these WLAs, the infrastructure financial institution will be able to take financial products and services of the sponsor bank to the doorstep of the rural population.

Immediate Payment Service (IMPS) launched

An all-India inter-bank money transfer service through the m-Pesa platform was launched during March 2014. This service was launched by the means of an association of the Immediate Payment Service (IMPS) of the National Payments Corporation of India (NPCI) with the Mobile Commerce Solutions Ltd (MCSL). MCSL is a leading pre-paid/remittance provider associated with the m-Pesa platform. Under this service an MCSL (m-Pesa) user can send money to customers of any IMPS-enabled bank using NPCI’s remittance platform. The National Payments Corporation of India (NPCI) is the umbrella organisation of all retail payment systems in India, set up with the support of the Reserve Bank of India and Indian Banks’ Association (IBA). Immediate Payment Service (IMPS) is a remittance processing platform offered by NPCI that offers instant, 24X7, electronic funds transfer through mobile, Internet or ATM between banks and pre-paid providers.

Axis Bank launches its own Kisan Credit Card

Private sector bank Axis Bank on 27 March 2014 launched its own Kisan Credit Card (KCC), which is aimed at helping farmers access liquidity round-the-clock. The bank claimed that it is first new generation private sector bank to launch an electronic Kisan Credit Card on the RuPay platform. The KCC scheme was introduced in August 1998 and since then, a host of banks, a majority of them in the state-run space, have launched such cards.

03 Oct, 2014

India Post announces plan to install 3,000 ATMs and 1.35 lakh micro-ATMs

India Post (Indian postal department) during February 2014 rolled-out its ambitious plan to install as many as 3,000 ATMs and 1.35 lakh micro-ATMs at its post offices across the country for savings account holders by installing three ATMs in Chennai, New Delhi and Bangalore. India’s first Post Office Savings Bank ATM was inaugurated on 27 February 2014 by the then Finance Minister P. Chidambaram at Chennai’s Thiyagaraya Nagar Head Post Office. This initiative of opening Post Office Savings Bank ATM is part of the government’s Rs. 4,909 crore IT modernisation scheme for the Department of Posts specified in the interim budget for 2014-15The organisation plans to ramp up this plan gradually and announced September 2015 as the deadline for installing these ATMs and micro-ATMs. Under this plan, 1,000 ATMs with the India Post branding will be put in within the first year, which will be ramped up massively to 3,000 in the next 18 months. To start with, the ATMs can be used only by 26 crore savings account-holders who save with the postal department but India Post hopes that within six months of the launch, it will get the interoperability permission from the Reserve Bank of India (RBI). Postal savings are worth around Rs 6.05 trillion.

……………………………………………………………………………………………………

7th Central Pay Commission constituted

During February 2014 the 7th Central Pay Commission was constituted by the Union Govt. under chairmanship of Justice Ashok Kumar Mathur, former Judge of the Supreme Court. The commission will put forward its recommendations for will revising salaries of over 50 lakh central government employees and remuneration of 30 lakh pensioners. The Commission has been mandated to submit its report in two years time and its recommendations would be implemented from 1 January 2016. Earlier in September 2013, the then Prime Minister Manmohan Singh had approved setting up of the 7th Central Pay Commission. The other members of the Commission, include, Oil Secretary Vivek Rae (full time Member), NIPFP Director Rathin Roy (part-time Member) and OSD in Expenditure Department Meena Agarwal (Secretary).

……………………………………………………………………………………………………

IBA advisory on use of Windows XP in PSU banks

The Indian Banks’ Association (IBA) during February 2014 issued an advisory to banks to ensure business continuity after Microsoft ends support for its popular Windows XP operating system on 8 April 2014. In its advisory it drew the attention of banks to a study by Microsoft in which it claimed that very large number of Indian public bank branches would become vulnerable following the U.S.-based firm’s decision to stop support to Windows XP. The IBA claimed that around 34,000 public sector bank branches were claimed to be affected by ending of support for Windows XP. Windows XP – launched in October, 2000 was three generations behind the latest operating system Windows 8, which was launched in October, 2012.

……………………………………………………………………………………………………

Vodafone becomes India’s first telecom player to be fully owned by a foreign company

Vodafone became India’s first telecom player to be fully owned by a foreign company following approval of company’s FDI proposal by the Cabinet Committee on Economic Affairs (CCEA) on 6 February 2014. The CCEA on 6 February approved the telecom major Vodafone’s Rs 10,141 crore (or $1.6 billion) proposal to buy out minority shareholders in its Indian unit. This was the single largest foreign investment in the telecom sector.

……………………………………………………………………………………………………

Union Govt.’s announcement about plastic notes in India

Union Govt. during February 2014 announced that plastic notes in the denomination of Rs. 10 will be introduced on a trial basis in 5 cities of the country during the second half of 2014. These 5 cities are – Kochi, Mysore, Jaipur, Shimla and Bhubaneswar.

……………………………………………………………………………………………………

RBI agrees to set up Payments banks in India

In an important development the Reserve Bank of India (RBI) during February 2014 announced that in coming days Indian citizens without a bank account would be able to withdraw cash from an ATM (automated teller machine) with the help of mobile technology. For this a special category of banks – the Payments Banks would be established. The Nachiket More Committee on Financial Inclusion had recommended the set up of these banks. These banks will play important role in facilitating this system under which a payment system will facilitate funds transfers from bank account holders to those without accounts through ATMs. Under this initiative the sender can go to an ATM with a participating bank and ask the money to be withdrawn from his account. The intermediary then processes the payment and sends a code via mobile to the recipient. The recipient takes that code to the nearest ATM of that participating bank, punches in the code and withdraws the money.

……………………………………………………………………………………………………

India Post launches its e-IPO facility

India Post (Dept. of Posts) on 13 February 2014 launched electronic Indian Postal Order (e-IPO) for Indian Citizens living in India. e-IPO was especially developed to facilitate paying online fee for seeking information under the RTI. e-IPO is a facility to purchase an Indian Postal Order electronically for paying RTI fee online through e-Post Office Portal (https://www.epostoffice.gov.in) or India Post web-site (www.indiapost.gov.in). After paying the fee online one just need to annex the print-out of the receipt to the RTI application. Earlier last year the Department had launched the e-IPO on 22 March 2013 for Indian Citizens living abroad across the globe.

……………………………………………………………………………………………………

Archana Bhargava quits her CMD post at United Bank of India

Archana Bhargava, the chairperson and managing director (CMD) of Kolkata-headquartered United Bank of India (UBI) took voluntary retirement on 20 February 2014. The UBI was undergoing huge trouble at the time of her quitting, with the bank’s gross non-performing assets jumped 194% to Rs. 8,545.50 crore as at December-end 2013 against Rs. 2,902 crore as at December-end 2012.

……………………………………………………………………………………………………

G Gopalakrishna Committee on examining the recommendations of FSLRC

The Reserve Bank of India (RBI) during February 2014 constituted a committee under G Gopalakrishna to examine the recommendations of the Financial Sector Legislative Reforms Commission (FSLRC) relating to capacity building in the banking sector. G Gopalakrishna is an Executive Director in the RBI. The committee will examine the skills required at various levels/operations to deliver on the required role and also identify qualifications relevant to specific areas of operation in banks and non-banks. Further, it will evolve methodologies for prescribing certification for required qualifications. The committee was also tasked with the responsibility of identifying capacity building requirements keeping in view the role of financial sector and what it should deliver.

……………………………………………………………………………………………………

Constitution of Public Debt Management Agency proposed

Public Debt Management Agency (PDMA) is the name of the proposed agency for better management of the government’s borrowings which was announced by the Union Finance Minister P. Chidambaram in his vote-on-account on 17 February 2014. Chidambaram announced that the Centre is ready with the Public Debt Management Agency Bill and that the proposed agency will be established as a non-statutory body and is expected to begin work in the next fiscal. Former finance minister Pranab Mukherjee had first announced setting up of PDMA in his budget speech of 2011-12. The PDMA is expected to consist of RBI officials, civil servants and people from the private sector.

02 Oct, 2014

RBI issues clarifications about its “Clean Note Policy”

The Reserve Bank of India (RBI) dismissed rumours that it has stopped banks from accepting scribbled currency notes from 1 January 2014 and announced that banks will continue to accept currency notes with scribbling. However, it reiterated that writing or scribbling on banknotes works against the Clean Note Policy (2013) to keep currency notes clean and sought co-operation from public, institutions and others in keeping the banknotes clean by not writing anything on them. It is worth mentioning that the Clean Note Policy, 2013 has guidelines about doing-away with practices like stapling of currency notes, writing (scribbling) on currency notes and re-issuing dirty notes to public by banks.

…………………………………………………………………………………

Universal Electronic Bank Account (UEBA) proposed by Nachiket More Committee

The Nachiket Mor Committee made the important recommendation to provide a Universal Electronic Bank Account (UEBA) each Indian citizen above the age of eighteen years by 1 January 2016. The report of the committee was submitted during January 2014. The committee in its report stated that the country should have enough number and distribution of electronic payment access points so that “every single resident would be within a 15 minute walking distance from such a point anywhere in the country” by January 2016. On UEBAs, the

panel said every resident should be issued a UEBA automatically at the time of receiving their Aadhaar number by a “high quality, national, full-service bank”. The complete formal name of Nachiket Mor Committee is Committee on Comprehensive Financial Services for Small Businesses and Low-Income Households. Nachiket Mor is the Member on the Central Board of Directors of the RBI.

…………………………………………………………………………………

Axis Bank becomes first Indian domestic private sector bank to have branch in China

Axis Bank during January 2014 became the first Indian domestic private sector bank to have a branch presence in China. This first branch of Axis Bank was opened in Shanghai. The bank received permission from the China Banking Regulatory Commission (CBRC) for opening this branch.

…………………………………………………………………………………

Mayaram Panel on removing ambiguity between FDI and FII

The Arvind Mayaram led 4-member committee on defining FDI and FII and removing the ambiguity between them presented its report during January 2014. The committee recommended splitting overseas investment inflows into two categories – Foreign Portfolio Investment (FPI) and Foreign Direct Investment (FDI) – with a minimum composite cap of 49%. The committee also recommended an aggregate automatic limit of 24% of FPI, which may be raised up to the extent of FDI permitted under the automatic route.

…………………………………………………………………………………

Union Govt. revised plans to open 10,000 new bank branches

The then Union Finance Minister P. Chidambaram during January 2014 announced revising govt.’s target of opening new bank branches from 7,000 to 10,000 (per year). He stated that the in effort to take banking services to rural areas, the govt. has planned to open 10,000 new bank branches annually. This move is expected to create at-least 55,000 new bank jobs.

…………………………………………………………………………………

Tamilnad Mercantile Bank announces 9000% interim dividend

During January 2014, Tamilnad Mercantile Bank (TMB) came to limelight for declaring an interim dividend of 9000%, which was said to be the highest in India’s banking industry. Tuticorin-based TMB took a decision to this effect at a meeting held during January 2014. This dividend stood at Rs. 900 per share of Rs 10 each, for the fiscal ending March 2014.

…………………………………………………………………………………

P.J. Naik Committee for reviewing the governance of bank boards in India constituted

The Reserve Bank of India (RBI) during January 2014 constituted an 8-member expert committee led by former Axis bank Chairman and CEO PJ Naik to review the governance of bank boards in India, which included examining the ownership and salary structure of banks.

…………………………………………………………………………………

CGTMSE provides risk coverage to BMB’s collateral-free loan scheme

The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) during January 2014 agreed to provide risk cover to the Bharatiya Mahila Bank (BMB) for its ambitious scheme collateral-free loan scheme. Under this scheme BMB is providing collateral-free loans for amounts up to Rs. 1 crore to women entrepreneurs. CGTMSE is a credit guarantee scheme, where a premium is paid either by the lender or the applicant, and it is providing a guarantee cover for up to 80% of loans availed by women owned or operated micro- and small enterprises.

…………………………………………………………………………………

Vakrangee Ltd. receives authorization for operating White Label ATM

Vakrangee Ltd., which is engaged in providing e-governance solutions, during January 2014 received final authorization for operating White Label ATM (WLA) license from Reserve Bank of India (RBI). Under, the RBI license, the company is entitled to set up and run minimum 15,000 ATMs across the country in next three years. White label ATMs are those which are not run by the Banks but by a non- banking entity in its own brand name (like Vakrangee ATM) after passing through all the stringent qualification and due-diligence process undertaken by RBI.

…………………………………………………………………………………

Deutsche Asset Management becomes first private sector fund house to launch IIF

Deutsche Asset Management India (DAMI) during January 2014 became the first private sector fund house to launch an inflation indexed fund that aims to provide inflation-adjusted returns to investors. DWS Inflation-Indexed Bond Fund is an open-ended debt fund that opened for subscription on 16 January and closed on 27 January2014. Inflation indexed bonds (IIBs) are instruments where interest payment and principal are linked to whole sale price index (WPI) inflation and these bonds are currently available at an attractive yield of 3.6% above WPI. Government has been issuing IIBs on a monthly basis since June 2013.

…………………………………………………………………………………

State Bank of India came out with plans to outsource some of its ATM operations

India’s largest commercial bank SBI came out with plans to outsource the management of some of its ATMs by taking calls from vendors. During January 2014 SBI called for a Request for Proposal (RFP) from vendors to manage about 7,843 cash dispensers (ATMs).

29 Sep, 2014

1) Which bank claimed first spot in the mobile banking segment in the country, as reported in the latest data released by the RBI on 15 September 2014? – State Bank of India (SBI)

Explanation: SBI’s total number of mobile banking users stood at 1.15 crore. ICICI Bank stood second with 19.5 lakh users and was followed by Axis Bank (13.6 lakh), Yes Bank (4.3 lakh) and HDFC Bank (3.5 lakh). The number of SBI’s mobile banking users is larger than the mobile banking customer base of large banks in the West. Only a couple of Chinese banks have more mobile banking customers. SBI’s emergence as country’s largest mobile banking operator came as a surprise as traditionally new generation private banks and foreign banks have been the early adopters of alternative platforms like mobile banking.

…………………………………………………………………..

2) Despite numerous signs of recovery being seen in Indian economy, banking credit growth plunged to its lowest level in last 5 years. What was the banking credit growth rate as on 31 August 2014, which was the lowest in last 5 years? – 10.9%

Explanation: The last time credit growth had dipped to similar levels was during November-December 2009, after the 2008 financial crisis. Over the last two years, the credit growth of banks has slipped substantially. In 2012-13 and 2013-14, the credit growth slowed down to 13-14%, after growing at 22% annually since 2004-05. Banking credit growth rate is one of the most powerful indicators of the country’s economic activity. It is a function of growth in the gross domestic product (GDP). Over the last ten years, credit growth has been 2.5 to 3 times the real GDP growth in the economy. Thus, with the economic growth hitting a low of 4.7% in 2013-14, the loan growth also slowed down to 14%.

…………………………………………………………………..

3) Pension regulator PFRDA during September 2014 constituted an expert committee to review the investment guidelines for National Pension System (NPS) schemes in private sector. Who was appointed as the Chairman of this committee? – G N Bajpai, Former Chairman of SEBI and former Chairman of LIC

Explanation: This committee will look at the investment guidelines in a “wholesale” manner so as to enable flow of pension monies in new instruments such as long term infrastructure bonds to be floated by banks, infrastructure debt funds and Basel 3 compliant bonds. The committee will among other things also consider moving to dynamic market-based allocation of funds/choice of fund managers. The review of investment guidelines will also help revamp the role of pension fund managers (PFMs) and could allow them to proactively promote pension products. The members of the expert committee include Deepak Satwalekar, former CEO and Managing Director at HDFC Standard Life Insurance Company, S B Mathur, former LIC Chairman, C R Murlidharan, former IRDA Member and Madhavi Das, Executive Director, PFRDA.

…………………………………………………………………..

4) Which private-sector bank announced its unique ‘Cardless Cash Withdrawal’ service on 10 September 2014, which allows its customers to transfer money from their account to anyone in India with a mobile number? – ICICI

Explanation: Under the ‘Cardless Cash Withdrawal’ service, the recipient can withdraw money round the clock without using a debit card from over 10,000 ATMs of ICICI Bank across the country. One can do this even without having a bank account of any bank. However, the sender needs to be an ICICI Bank savings account holder. The facility can be initiated by any ICICI Bank savings account customer (sender) by logging into internet banking of ICICI Bank website.

…………………………………………………………………..

5) Which public-sector bank during September 2014 sought permission of the RBI to launch contact-less debit cards which would enable customers to carry out some transactions without entering the pin number? – SBI

Explanation: Right now, for any card which has to be used, a customer has to put in the pin number. Many banks feel that some exception has to be made as for lower amount deals like buying a Metro or bus ticket, where the customer can simply show the card and get in. Hence the SBI has requested the RBI to come up with a limit below which the pin will be waived. It has requested a limit of Rs. 2,000 for the same. The bank is currently doing a test-run of such contact- less cards at the Chennai and Mumbai metro stations.

…………………………………………………………………..

6) State Bank of India (SBI) on 8 September 2014 launched its first multi-currency international debit card to allow consumers to use a single card to pay in multiple currencies. This card launched in a tie-up with MasterCard would, at present, enable customers to load how many international currencies in this card? – Four

Explanation: These 4 currencies include US dollar, euro, Great Britain pound and Singapore dollar. More currencies will be added going forward as the card has the facility to be loaded up to 12 currencies.

…………………………………………………………………..

7) State Bank of India (SBI) has recently planned an incentive plan for its employees, which, if implemented, would be the first of its kind in the public sector banking space. What plan is this? – To roll out an employee stock option scheme (ESOS) for employees

Explanation: The move to offer ESOS is aimed at motivating employees to perform better as also to attract and retain talent. Competition to attract experienced bankers has intensified with the Reserve Bank of India (RBI) granting “in-principle” approval in April to IDFC and Bandhan Financial Services to set up banks in the private sector. Therefore, SBI is now considering an ESOS, which will give an employee the right to purchase or subscribe to the securities offered by the bank at a future date, and at a predetermined price.

…………………………………………………………………..

8) The Reserve Bank of India (RBI) on 9 September 2014 fixed the maximum age for Managing Directors and Chief Executive Officers in private sector banks at 70. This age fixation has been done primarily with regard to which act to be complied by the companies? – The Companies Act, 2013

Explanation: The Companies Act, 2013 prescribes that “no company shall appoint or continue the employment of any person as Managing Director, Whole Time Director (WTD) or Manager who is below the age of 21 years or has

attained the age of 70 years”. Within the overall limit of 70 years, individual bank’s boards are free to prescribe a lower retirement age for WTDs, including MD & CEO, as an internal policy.

…………………………………………………………………..

9) The Reserve Bank of India (RBI) during September 2014 closed down six Urban Cooperative Banks (UCBs), the conduct of whom was found suspicious. What was the main charge against these UCBs? – Being indulged in money laundering activities

Explanation: The report had emerged that such entities were being used as conduits for money laundering. The matter of misuse of UCBs, over which there is dual control by central and state governments, was discussed during a recent meeting of the Economic Intelligence Council (EIC) headed by Finance Minister. UCBs are inspected annually or once in two years depending on their ratings or classification. About 70% of these urban cooperative banks are subjected to inspection every year. RBI has aggressively pursued the issue.

…………………………………………………………………..

10) The investments in the Indian capital market through foreign institutional investors (FIIs) broke all records during 2014. What is the aggregate investment through the FII route till 15 September, the data pertaining to which was released by the SEBI on 16 September 2014? – Rs. 1,97,715.9 crore

Explanation: Out of this Rs. 85,247 crore was invested through the equity route while Rs. 1,12,469 was invested through the debt route. It is worth mentioning that this figure is far above the next best year of FII investment – 2010, in which total aggregate investment stood at Rs. 1,79,674.6 crore for the full year.

17 Sep, 2014

1) Which public-sector bank declared Kingfisher Airlines, its promoter Vijay Mallya and three directors as “wilful defaulters” on 1 September 2014, with which it became the first bank to make such a declaration against Mallya? – United Bank of India (UBI)

Explanation : Kolkata-based United Bank of India (UBI) is a part of the State Bank of India-led consortium to have financed Kingfisher and has an exposure of around Rs. 400 crore to it. A “wilful defaulter” tag means Mallya cannot be on the board of any company nor can he raise money from the public. He can also be subjected to criminal proceedings under Sections 403 and 425 of the IPC, dealing with misappropriation and fraud.

………………………………………………………………………………………..

2) The Law Ministry of India has opined that the Government of India has all the powers to print currency notes of Re. 1 denomination. Why the opinion of Law Ministry on this issue was taken? – The RBI was of the view that with the repeal of Section 2 of the Currency Ordinance, the Government of India is not empowered to issue note of denominational value of one rupee

Explanation: Section 4 of the Coinage Act of 2011 provides that the central government may authorise minting of coin of denomination not higher than Rs. 1,000. The definition of coin in the Act makes it clear that Government of India one rupee note is included in the definition of coin. The Law Ministry in its opinion stated that the Act, which

consolidates the laws relating to coinage and the mints, does not bar the Government of India from printing one rupee notes. The printing of notes in the denominations of Re. 1 and Rs. 2 has been discontinued as these denominations have been coinised. However, such notes issued earlier are still in circulation.

………………………………………………………………………………………..

3) NIFTY, the 50-scrip benchmark index of the National Stock Exchange (NSE) crossed which milestone mark for the first time on 1 September 2014? – 8,000 mark

Explanation : Nifty hit 8,000 level for the first time while Sensex hit a new high of 26,900 on 1 September mainly due to positive GDP growth figures released recently. The CSO had estimated 5.7% GDP growth rate during the first quarter of 2014-15, which is the best quarter performance since March 2012.

………………………………………………………………………………………..

4) The Reserve Bank of India (RBI) cancelled licences of five non-banking financial companies (NBFCs) on 2 September 2014. These NBFCs include Unichem Finance & Enterprises Pvt., Shimansu Vyaparik Kendra Ltd., Shree Bhagwati Marketing Private Ltd. and Sureka Teknik Private Limited. All these NBFCs are based in same city. Which city is this? – Kolkata

………………………………………………………………………………………..

5) The Competition Commission of India (CCI) during September 2014 initiated an investigation against public sector general insurers and their association. The PSU insurance companies against whom this investigation has been initiated include New India Insurance, Oriental Insurance, United India Insurance and National Insurance, as well as their combine, the General Insurers’ (Public Sector) Association of India (GIPSA). What is the reason for this investigation? – Alleged anti-competitive practices relating to third-party administrators (TPAs) in health insurance committed by these companies

Explanation : The charges against these public general insurers are that they are not allowing TPAs to function independently and have created in-house TPAs to settle any claims. It is also alleged that GIPSA, an ad hoc and unregistered body, was providing a platform to the companies to share sensitive information with each other. This affects competition in the market and also provides space to them for exchanging information regarding claims ratios, marketing efforts and terms and condition of TPAs, among others.

………………………………………………………………………………………..

6) The Union Government during September 2014 asked Expenditure Management Commission (EMC) to suggest an effective strategy for meeting reasonable proportion of expenditure on services through user charges. The newly set up EMC will have to review the major areas of Central Government expenditure and suggest ways for creating fiscal space required to meet developmental expenditure needs. Who is heading EMC? – Bimal Jalan (former RBI Governor)

Explanation: Bimal Jalan, who has been conferred with the status of a Union Cabinet Minister, has been asked to design a framework to improve the operational efficiency of expenditures through focus on utilisation, targets and

outcomes. Union govt. has asked the EMC to review the fiscal responsibility and budget management (FRBM) rules to suggest improvements for enforcing better fiscal discipline. The EMC, which will be headquartered in New Delhi, will have to submit an interim report before Budget 2015-16.

………………………………………………………………………………………..

7) India has been ranked third in a list of countries most affected by online banking malware during the April-June quarter of 2014 as announced by security solutions provider Trend Micro on 6 September 2014. Which country has been ranked first in this list? – Japan

Explanation: Japan topped the list with the highest number of online banking malware infections during the April-June quarter of 2014. In May alone, it saw 13,000 malware infections. Japan was followed by U.S. in this list which saw about 5,000 malware infections during the month, followed by India with 3,000 attacks. Growing Internet penetration and rising popularity of online banking have made India a favourite among cybercriminals, who target online financial transactions using malware. These and many such incidents show that cybercriminals will always adapt to new trends and situations whether in the use of new malware or targeted attacks techniques to continue their attacks.

………………………………………………………………………………………..

8) After being in business for seven years, Future Generali Life Insurance has reported its maiden quarterly profit during the quarter ended 30 June 2014. Future Generali Life Insurance is the part of which group? – Future Group

Explanation: Future Generali Life Insurance is life insurance venture between Kishore Biyani’s Future Group and Italian insurance company Generali.

………………………………………………………………………………………..

9) Barring a few, most of the life insurance companies have disclosed lower ‘persistency ratios’ for the first quarter of the current fiscal ended 30 June 2014 as also for the full financial year ended 31 March 2014. What is the reason for lower ‘persistency ratio’? – A new standardised disclosure regime put in place for insurance sector

Explanation: The persistency ratio broadly measures the quantum of the customer retention by the life insurance companies, while determining the percentage of policyholders paying renewal premiums at the end of one year, or more years depending on the tenure of the policy. However, persistency ratio has been one of the most abused financial metric by many insurers, who tend to disclose their best possible persistency ratios without following any standard formula or any specific time period. The insurance sector regulator IRDA earlier this year made changes in norms for such disclosures and put in place a standard formula to be followed by all companies in reporting their 13thmonth persistency ratios. An analysis of the disclosures made by various life insurers so far this year shows that there has been a marked decline in the high level of persistency reported earlier by many companies.

………………………………………………………………………………………..

10) What is the name of a deadly ‘Trojan’ virus which hacks and steals personal credit and debit card data and is prowling in the Indian cyberspace as announced on 3 September 2014 by Indian cyber security watchdog CERT-In? – “Backoff”

………………………………………………………………………………………..

Explanation : “Backoff” is being seen spreading through computer networks which use Windows as their operating systems. It targets Point of Sale (POS) systems and propagates by scanning for systems with remote desktop applications enabled. The virus is capable of stealing customer payment cards data like card holders name, account number, expiration data, CVV code among others from POS systems. The virus is so notorious that it is able to capture keystrokes and communicate with the command and control server for further hacking. CERT-In (Computer Emergency Response Team India) is the nodal agency to combat hacking, phishing and to fortify security-related defences of the Indian Internet domain.

07 Sep, 2014

1) The ambitious Pradhan Mantri Jan Dhan Yojana (PMJDY) was launched formally on 28 August 2014 by the Prime Minister Narendra Modi at function held at Vigyan Bhawan in New Delhi. The scheme promoted mainly to end financial untouchability in India saw the opening of an estimated 1.5 crore bank accounts across the country on this single day. What are the main benefits for families opening accounts under PMJDY?

Explanation :

Following are the main benefits for account holders of PMJDY

A RuPay debit card for every account holder

Rs. 1 lakh accident insurance cover

Rs. 5,000 overdraft facility

An additional Rs. 30,000/- life insurance cover for those opening bank accounts before 26 January 2015

……………………………………………………………………………………….

2) Which professional services firm was hired by the Union Finance Ministry to undertake a validation exercise of the number of basic bank accounts opened by the banks under the Pradhan Mantri Jan Dhan Yojana (PMJDY)? – KPMG

Explanation :

KPMG would provide some comfort to the Finance Ministry that the numbers submitted by the banks pertaining to PMJDY were accurate and reflected the true picture. KPMG’s confirmation of the number of accounts opened will help the Centre pitch for an entry into the Guinness Book of World Records for the maximum number of bank accounts opened in a day. On 28 August 2014, the launch date of the PMJDY, the banking system had opened around 1.5 crore bank accounts. KPMG has already commenced work for this purpose and have approached banks

to share information on the number of accounts opened under the PMJDY. Under the PMJDY, the Government is looking to open at least 7.5 crore basic bank accounts for 7.5 crore unbanked families in the country.

……………………………………………………………………………………….

3) What is the slogan (punchline) of Pradhan Mantri Jan Dhan Yojana (PMJDY) which was launched on 28 August 2014? – “Mera khaata Bhagya vidhataa” (which means “My Bank Account – The Good Fortune Creator”)

……………………………………………………………………………………….

4) Which public sector bank on 5 September 2014 Pehla Kadam and Pehli Udaan – two new Savings Bank products for children? – State Bank of India (SBI)

Explanation :

Pehla Kadam is a Savings Bank account for minor of any age operated jointly with his/her parent/guardian, while Pehli Udaan is a singly operated Savings Bank Account for a minor aged 10 years and above and who can sign uniformly. Specially branded passbook and cheque book have been designed for these products. All the account holders will be given an exclusively designed personalised photo ATM-cum-Debit Card. Other features bundled along with the two products include Internet banking with limited transaction facilities like bill payment, opening of fixed deposits, recurring deposits, etc. with per day transaction limit of Rs. 5,000, and mobile banking with limited transaction facilities like bill payment, and top-ups with per day transaction limit of Rs. 2,000.

……………………………………………………………………………………….

5) The Reserve Bank of India (RBI) during August 2014 notified that the two-step authentication for credit card transactions including ‘card not present transactions’ is a must as mandated under the rules. This announcement was made by the RBI primarily to set right which anomaly? – To bring under check the so-called customer-friendly payment model followed by certain service providers

Explanation :

The toughening RBI stance on two-step authentication process is primarily aimed to set right an unintended wrong arising out of the so-called customer-friendly payment model followed by certain service providers. By doing so, they have managed to give the two-step authentication requirement a slip. According to the RBI, however, this is resulting in foreign exchange outflow. The non-adherence to the two-step authentication process has also made the field uneven for players especially in fields such as taxi operation. Frequent taxi users among credit card holders will prefer a cab provider who accepts a hassle-free payment process.

……………………………………………………………………………………….

6) The much-awaited minimum monthly pension of Rs. 1,000 and a higher wage ceiling of Rs. 15,000 for social security scheme run by retirement fund manager Employees’ Provident Fund Organisation (EPFO) came into effect from 1 September 2014. This Rs. 1,000 pension scheme is being made available under which scheme of EPFO? –Employees’ Pension Scheme 1995 (EPS-95)

Explanation :

The government has notified enhancement of wage ceiling to Rs. 15,000 per month, fixed minimum monthly pension at Rs. 1,000 under EPS-95 and enhanced the maximum sum assured under the Employees’ Deposit Linked Insurance (EDLI) Scheme to Rs. three lakh. The government’s decision to fix pension entitlement of Rs. 1,000 under the Employees’ Pension Scheme 1995 (EPFS-95) will immediately benefit 28 lakh pensioners who get less than this amount at present. The move to enhance the minimum wage ceiling for becoming a subscriber of Employees’ Provident Fund Organisation to Rs. 15,000 per month is expected to bring 50 lakh additional formal sector workers under the ambit of the body.

……………………………………………………………………………………….

7) To strengthen warehousing facilities in the commodity futures market, regulator Forward Markets Commission (FMC) has come out with which important proposal during August 2014? – Uniform norms should be established for the accreditation of warehousing service providers

Explanation :

The draft rules, on which public comments have been sought by 15 September 2014, come in the wake of Rs 5,600 crore payment scam at the National Spot Exchange Ltd (NSEL) that surfaced in July last year, exposing loopholes in the system. The proposed changes are being made because at present no uniform norms are being followed by national level commodity exchanges for accreditation of warehousing service providers (WSPs).

……………………………………………………………………………………….

8) What is the most important recommendation of the Kelkar Committee on gas pricing, as disclosed in the second report of the committee presented during August 2014? –Domestic gas prices should be linked to the market

Explanation :

The committee to recommend a new gas-pricing formula was constituted in 2013 under former Finance Secretary Vijay Kelkar. The suggestion of market-linked pricing for domestic natural gas came after a series of consultations by the committee. The committee in its recommendations said that natural resources should be priced at the highest price possible in the market, based on market-determined pricing. This will ensure energy security for the country by encouraging domestic exploration and production, efficient use of the resource and reduction in the import burden. The first report of this committee was brought out in January 2014.

……………………………………………………………………………………….

9) The Central Board of Direct Taxes (CBDT) on 28 August 2014 constituted a high-level committee to scrutinise all income tax cases arising out of the retrospective tax amendment. Which govt. official heads this committee? – The Joint Secretary of the Foreign Tax and Tax Research Unit -1 of CBDT

Explanation :

The announcement about this mechanism was announced by Finance Minister Arun Jaitley in his Budget 2014-15 speech on 10 July 2014. According to the terms of reference for the new committee, it would decide on such retrospective cases within of 60 days of receiving them from the Assessing Officer. Retrospective tax is the tax rate levied by income tax department which is perceived higher by the company being assessed, charged higher due to some unknown reasons.

……………………………………………………………………………………….

10) Ratan Tata, Tata Sons Chairman Emeritus, recently made personal investments in which online marketplace company? – Snapdeal.com

Explanation :

Snapdeal is the second largest online marketplace in India after Flipkart.com. The company has raised about $400 million since its inception and has invested about $100 million in logistics and operations to expand its presence in the $3 billion Indian e-Commerce market. Snapdeal currently houses over 5 million products across 500 diverse categories from over 50,000 sellers. Snapdeal claims that it had seen 600% growth year-on-year for the last two years.

29 Aug, 2014

1) The Reserve Bank of India (RBI) on 18 August 2014 constituted a 15-member inter-regulatory committee to monitor the growing phenomenon of shadow banking. Who has been appointed as the Chairman of this committee? – P. Vijaya Bhaskar (Executive Director, RBI)

Explanation : Shadow banking refers to banking-like activity by non-banking finance companies (NBFCs) that remain outside the regulatory net. They generally operate as intermediaries between investors and borrowers. The role of this newly constituted committee will be to find out the volume of money in shadow banks, who the investors are and direction of the money flow, etc. Also real estate dealings will be looked into very meticulously by the committee. The 15-member committee comprises of officials of the RBI, Securities and Exchange Board of India (SEBI), Central Economic Intelligence Bureau and the National Housing Bank (NHB).

……………………………………………………………………………

2) What is the name of the new scheme announced by the Prime Minister Narendra Modi on 15 August 2014 to help the poor in opening bank accounts, which will come with the facility of a debit card and an accidental insurance cover of Rs. 1 lakh? –‘Pradhan Mantri Jan Dhan Yojana’

Explanation : The Union Cabinet has already cleared the two-phase financial inclusion scheme under which bank accounts will be opened for 15 crore poor persons with an overdraft facility of Rs 5,000 and accidental insurance cover of Rs. 1 lakh. The scheme, to be pushed by the government in a mission mode, seeks to provide two accounts to 7.5 crore identified households by August 2018. The Prime Minister in his Independence Day address observed that people have mobile phones but not bank accounts and he hoped that the scheme will help in bringing the benefits of formal banking system to them.

……………………………………………………………………………

3) The Reserve Bank of India (RBI) on 22 August 2014 released the charter of customer rights, which seeks to provide the right to be treated with courtesy to both the customer and the financial services provider. What are the important clauses of this charter?

- The customer should not be unfairly discriminated against on grounds such as gender, age, religion, caste and physical ability when offering and delivering financial products by the financial services provider

- The key risks associated with the financial product as well as any features that may especially disadvantage the customer should be made known to him/her by the financial services provider

- The financial services provider should provide customers with product terms and conditions that are in simple language, easily understandable, and with sufficient information that the customer could be reasonably expected to make an appropriate choice of product

- The financial services provider may, however, have certain special products which are specifically designed for members of a target market group or may use defensible, commercially acceptable economic rationale for discriminating between customers

……………………………………………………………………………

4) The Reserve Bank of India (RBI) announced on 14 August 2014 that its board has given approval to create an additional post in the rank of Deputy Governor. For this RBI has approached the government for required legislative changes. Which post is this? –Chief Operating Officer (COO)

Explanation : The RBI, the central bank of India, is presently headed by a Governor and assisted by four deputy governors looking after different functions of the bank. It now wants to create a post of COO and re-allocate work among the five. The RBI has been deliberating on a broad HR restructuring exercise to align organisational resources and structures with the needs of the domestic economy and changes in the external environment.

……………………………………………………………………………

5) Who took over as the fourth Deputy Governor of the Reserve Bank of India (RBI) during July 2014? – Subhash Sheoratan Mundra or S.S. Mundra

Explanation : S.S. Mundra took the charge as the Deputy Governor of the RBI on 31 July 2014. Three other deputy governors of the RBI are Urjit Patel, HR Khan, and R. Gandhi. Before taking this responsibility at RBI, Mundra was the Chairman and Managing Director (CMD) of the public-sector bank – Bank of Baroda (BOB). Mundra filled the vacancy created by the retirement of K.C. Chakrabarty in April 2014, two months before his five-year tenure was come to an end.

……………………………………………………………………………

6) On 20 August 2014 the Finance Ministry ordered a forensic audit to be done at the branches of two banks in view of the reports of misappropriation of funds worth Rs. 436 crore. Which two banks are involved in this matter? – Dena Bank and Oriental Bank of Commerce (OBC)

Explanation : According to media reports, a Mumbai-based branch manager of Dena Bank mobilised fixed deposits (FDs), using middlemen, to the tune of Rs 256.5 crore from seven corporates, while in the case of OBC, misappropriation of funds to the tune of Rs. 180 crore was reported. In the wake of rising scams in public sector banks, the Finance Ministry is looking at various steps, including strengthening of risk management, appointment of bank chiefs for longer tenures, separation of posts and better quality of nominee and independent directors.

……………………………………………………………………………

7) Which international finance entity launched a $2.5-billion onshore Indian rupee bond programme on 20 August 2014 so as to strengthen the capital market and support infrastructure development in India? – International Finance Corporation (IFC)

Explanation : IFC is a member of the World Bank Group. It finances and provides advice for private sector ventures and projects in developing countries in partnership with domestic financial institutions and banks. Under the rupee bond programme, IFC will use a combination of rupee-denominated bonds and swaps to raise local currency financing of up to $2.5 billion or Rs. 15,000 crore over the next five years. Proceeds from the programme will be used for infrastructure investments in India.

……………………………………………………………………………

8) What is the name of the ambitious e-governance project of the Union Govt., which was approved by the Union Cabinet on 20 August 2014 and which aims to ensure that government services are available to citizens electronically? – ‘Digital India’ Project

Explanation : The project, which has a total overlay of Rs 1 lakh crore, aims to ensure that government services are available to citizens electronically and help people gain benefits from the latest information and communication technology. ‘Digital India’ project envisages bringing all the existing initiatives such as the Ebiz project, E-kranti, virtual classroom, e-visas and the National Optical Fibre Network project under a single umbrella. Other programmes include implementation of e-office to make Government departments paperless, encouraging domestic manufacturing of electronic products and kick starting Research & Development and entrepreneurship development fund. The project was unveiled in the Budget 2014-15 and is being directly monitored by Prime Minister Narendra Modi.

……………………………………………………………………………

9) What is the name of the controversial survey conducted by the Telangana Government throughout the state on 19 August 2014 and due to which various sections of the state were scared and apprehensive? – “Samagra Kutumbh Survey” or “Intensive Household Survey”

Explanation : The “Intensive Household Survey”, completed in one day across Telangana, was to identify genuine beneficiaries of government welfare measures. The surveyors sought to see bank account details and the Aadhar

card. The government had declared holidays under the Shops and Establishment Act. Residents of Telangana, especially capital Hyderabad, who originally came from Andhra areas were scared with this survey as they felt that the information collected from them would be used against them at a later stage. As various sections of the state populace were apprehensive about this survey, the matter was taken to the Hyderabad High Court about validity of the survey. The High Court on 14 August 2014 permitted the Telangana government to go ahead with the survey on the assurance of the state’s Advocate General that the exercise was not mandatory and denizens could choose not to answer the queries of enumerators. The survey was conducted across the ten districts in the state with the help of four lakh government employees and a huge team of outsourced enumerators in the state.

……………………………………………………………………………

10) India’s capital market regulator SEBI on 22 August 2014 ordered which NBFC entity to refund the money raised from some 58.5 million customers through collective investment schemes (CIS)? – Pearls Agrotech Corp. Ltd

Explanation : Delhi-based Pearls Agrotech operates from 15 regional offices and had 3.35 million field associates in 2011-12. SEBI found Pearls Agrotech violating CIS regulations by mobilizing the money without being registered with the regulator. The company offered two kinds of plans- a cash-down payment plan and an instalment payment plan. Under the former, it offered to allot land to customers within 270 days of payment and under the latter within 90 days.

19 Aug, 2014

1) The Reserve Bank of India on 14 August 2014 announced its decision to reduce the number of mandated free transactions for savings bank account holders at other bank ATMs located in six metro cities from five to three per month. This reduction would come into effect from which date? – 1 November 2014

Explanation : The six metro cities (Mumbai, New Delhi, Chennai, Kolkata, Bengaluru and Hyderabad) were chosen first for reducing the number of mandated free transactions as they are well-served in terms of payment infrastructure. This reduction in the number of mandated free transactions will, however, not apply to customers having no-frills/small/Basic Savings Bank Deposit Account (BSBDA) type of accounts as well as for transactions done by savings bank account holders at ATMs situated outside these six metro cities. Banks are also free to offer free transactions above this mandated limit.

………………………………………………………………………

2) The Reserve Bank of India (RBI) on 6 August 2014 issued guidelines for asset reconstruction companies (ARCs) to increase their investments in security receipts (SRs) with the objective of strengthening the asset recovery sector. What is the minimum prescribed percentage of funds that ARCs would now have to invest in SRs as directed in this RBI guideline? – 15%

Explanation : This minimum investment requirement for ARCs was 5% at present. Public sector banks sell their bad loans or NPAs (non-performing assets) to these ARCs. Sale of bad loans to ARCs gained momentum in 2013-14 mainly because banks were able to obtain better prices for these sales. But this RBI directive is likely to dissuade ARCs from offering a better price, since they will now have to make a higher upfront payment.

………………………………………………………………………

3) The Reserve Bank of India (RBI) presented its bi-monthly policy review on 5 August 2014. It kept the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 8.0%. It also left the cash reserve ratio (CRR) of scheduled banks unchanged at 4.0% of net demand and time liabilities (NDTL). However, which was the only major rate to be changed in this policy review? – The Statutory Liquidity Ratio (SLR)

Explanation : The SLR of scheduled commercial banks was reduced by 50 basis points from 22.5% to 22.0% of their NDTL with effect from the fortnight beginning 9 August 2014.

The major rates after this policy review are as follows:

* Short-term lending (repo) rate unchanged at 8%

* Cash reserve ratio (CRR) unchanged at 4%

* SLR cut by 0.50% to 22% to unlock banking funds

* Lowers banks’ SLR holdings in held-to-maturity category by 0.5% to 24%

………………………………………………………………………

4) Indian Parliament on 12 August 2014 passed the bill to empower SEBI to act against ponzi operators and market manipulators more effectively. What is the name of this bill? – The Securities Law (Amendment) Bill, 2014

Explanation : The bill was passed by the Lok Sabha on 6 August 2014 and the Rajya Sabha passed it on 12 August 2014. It empowers SEBI to act against ponzi operators and market manipulators more effectively through search and seizure, attachment orders and recovery proceedings and with access to call data records. This marks a dilution from the direct powers granted to SEBI Chairman through as many as three ordinances in the past one year to authorise search and seizure operations. Under the act constituted (with the passing of this bill), a special SEBI court would be set up in Mumbai to fast track prosecution proceedings launched by SEBI, as also to clear search and seizure operations proposed by SEBI.

………………………………………………………………………

5) India’s capital market regulator SEBI cleared final guidelines for creation and listing of business trusts for key sectors of real estate and infrastructure on 10 August 2014. These guidelines have been cleared to help attract greater foreign and domestic investments into these sectors. What are the names of business trusts associated with real estate and infrastructure which would be created and listed with these SEBI guidelines? – Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs)

Explanation : Finance Minister Arun Jaitley had outlined the proposal for establishment of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) in the Union Budget 2014-15 presented on 10 July 2014. The new norms would enable listing and trading of REITs and InvITs as any other security on the stock exchange platforms and would also help create new platforms for raising of funds by real estate and infrastructure

companies. Along with foreign investors, domestic institutions like insurers, pension funds and provident funds would also be allowed to invest in these trusts.

………………………………………………………………………

6) In order to solve the ongoing tussle between India and the WTO (World Trade Organisation), India during August 2014 suggested fixing of the base year for food subsidies on the basis of average of last three years. What is the year proposed by the WTO to be taken as the base year? – 1986-87

Explanation : India is of the view that taking 1986-87 as a base year in 2014-15 is completely illogical and it has hence suggested a more scientific calculation for base year calculation. Indian Government had vetoed the adoption of a WTO treaty to simplify, standardise and streamline the rules for shipping goods across borders, having previously agreed to its terms at a ministerial conference in Bali (Indonesia) during December 2013. India wanted more attention paid to its concerns over WTO limits on stockpiling of food which will ultimately hit its subsidised food distribution programme, the world’s largest, targeted at nearly 850 million people.

………………………………………………………………………

7) SEBI gave its approval to single registration for stock brokers during August 2014. What would be the main benefit for brokers with this approval? – Now the brokers would not need to obtain multiple certificates from SEBI for operating in the different segments of equity, equity derivatives, currency derivative and debt

Explanation : Under the proposed regime, initial certificate of registration as stock broker/clearing member will be granted by SEBI and subsequent permissions to act as stock brokers/clearing member of other stock exchanges/clearing corporations will be granted by respective stock exchange/clearing corporation after following the prescribed procedure. The latest SEBI move will also obviate the need for separate certificate for each category of operations – trading member, trading-cum-self clearing member and professional clearing member.

………………………………………………………………………

8) Petroleum Ministry during August 2014 accorded its in-principle approval for stake-sale in ONGC which may fetch the government about Rs. 18,000 crore to meet disinvestment target for the current fiscal. For this how much stake-sale in the company is proposed? – 5%

Explanation : As per the Budget 2014-15, the disinvestment target is Rs. 58,425 crore including receipts from disinvestment of government stake in the non-government companies. The Department of Disinvestment (DoD) has kickstarted the process of stake sale in ONGC and has invited bids for appointing merchant bankers to manage the share sale.

………………………………………………………………………

9) Indian Railways during August 2014 launched a contact-less smart card enabling passengers to pay for reserved as well as unreserved travelling train tickets as part of a pilot project. What is the name of this smart card with lifetime validity? – ‘Go-India’

Explanation : The ‘Go-India’ Card has been launched to be used at nominated UTS counters and Automatic Ticket Vending Machines (ATVMs) and nominated PRS counters for reserved tickets. The card will enable passengers to pay for tickets for long distance reserved, unreserved and suburban journeys. It is part of a pilot project to be implemented on two sectors – New Delhi – Howrah and New Delhi – Mumbai. On New Delhi – Howrah sector this card could be used at 6 railway stations – New Delhi, Kanpur, Allahabad, Dhanbad, Asansol and Howrah whereas on New Delhi – Mumbai sector the card could be used at New Delhi, Kota, Vadodara, Ratlam, Surat and Mumbai Central. The card would be of pre-paid nature and can be bought for Rs. 70 where passenger can get a value of Rs. 20 balance. After that the card can be recharged for Rs. 20 or in multiples of Rs. 50 up to Rs. 5,000. Maximum recharge value for ‘Go-India’ Card would be Rs. 10,000.

………………………………………………………………………

10) What is the name of the proposed airline of Tata-SIA Airlines Limited (TSAL), a joint-venture between Tata Group and Singapore International Airlines (SIA)? – ‘Vistara’

Explanation : The much-anticipated name was announced on 11 August 2014 by TSAL amid the release of the aubergine and gold logo of ‘Vistara’. ‘Vistara’ is derived from the Sanskrit word, which means limitless expanse and draws inspiration from the brand’s domain – the limitless sky. It would be a full service airline service and may take to the skies in October 2014.

13 Aug, 2014

1) The Union Govt. on 26 July 2014 launched a web portal for enabling government-citizen discussions on several issues. What is the name of this portal which was inaugurated by Prime Minister Narendra Modi? – MyGov

Explanation : The main objective of MyGov is to engage the youth of the country in the nation’s development. It presents an opportunity to citizens to both discuss and do constructive work. There are multiple theme-based discussions on MyGov where a range of people would share their thoughts and ideas. The portal is implemented and managed by National Informatics Centre (NIC) and the Department of Electronics and Information Technology (DeitY).

………………………………………………………………………….

2) Public sector based Central Bank during July 2014 announced its plans to sell 4% of its stake to LIC for Rs. 581 crore. This stake sale is planned to meet bank’s capital requirement of Rs. 2,000 crore this fiscal. With this proposed sale Union Govt.’s holding in Central Bank would come down to – 84%

Explanation : Presently the Union Govt. holds 88% stake in Central Bank. Once the bank gets funds from LIC, it will then approach the government for around Rs. 1,500 crore of additional capital. The government has earmarked only Rs.11,200 crore for fund infusion into public sector banks this current fiscal, down from Rs.14,000 crore in the last fiscal.

………………………………………………………………………….

3) How many banks were fined by the Reserve Bank of India (RBI) on 25 July 2014 for violating central bank rules in the case of Deccan Chronicle Holdings? – Twelve

Explanation : These 12 banks are – Andhra Bank (Rs 10 lakh), Axis Bank (Rs 15 lakh), Canara Bank (Rs 10 lakh), Corporation Bank (Rs 10 lakh), HDFC Bank (Rs 5 lakh), ICICI Bank (Rs 40 lakh), IDBI Bank (Rs 15 lakh), IndusInd Bank (Rs 10 lakh), Kotak Mahindra Bank (Rs 10 lakh), Ratnakar Bank (Rs 5 lakh), State Bank of Hyderabad (Rs 10 lakh) and Yes Bank (Rs 10 lakh). The RBI had carried out a scrutiny of the loan and current accounts of Deccan Chronicle Holdings Ltd., in certain branches of these banks in late 2013. After this scrutiny it came to the conclusion that some of the violations were substantiated and warranted imposition of monetary penalty.

………………………………………………………………………….

4) The government of Portugal on 4 August 2014 announced how much relief package for country’s largest listed bank – Banco Espirito Santo (BES) to bill out the beleaguered bank? – 4.9 billion euros ($6.58 billion)

Explanation : This relief package was announced just months after Portugal exited an international bailout and is therefore expected to test the Euro Zone’s resilience to another banking crisis. The rescue of Banco Espirito Santo would include split of the bank into a “good bank”, renamed Novo Banco, and a “bad bank”, which will house BES’ exposures to the troubled Espirito Santo business empire as well as its subsidiary.

………………………………………………………………………….

5) Which telecom company during July 2014 became the first in India to have a combined subscriber base of over 300 million? – Bharti Airtel

Explanation : Bharti Airtel’s subscriber base across mobile, fixed line and DTH services crossed 300 million recently. Company’s latest 100 million subscribers were added in less than 2 years. Bharti Airtel has been ranked as the fourth-largest mobile service provider globally and second-largest globally outside of China. It started its operations in 1995 and had touched 100-million customer mark in 2009 and the 200 million mark in 2012.

………………………………………………………………………….

6) S.K. Jain, who was arrested by the CBI on charges of allegedly accepting a bribe of Rs 50 lakh to enhance the credit limit of some companies, was the Chairman and Managing Director (CMD) of which public-sector bank? – Syndicate Bank

Explanation : He was arrested on 2 August 2014 by the CBI and was suspended by the Union Govt. on 4 August 2014. Jain was appointed CMD of state-owned Syndicate Bank in July last year for a period of five years. He was one of the youngest CMDs of a public sector bank and was due to retire in 2020.

………………………………………………………………………….

7) What is the name of the mission announced by the Union Govt. on 28 July 2014 envisioned to protect the indigenous breeds of cows in the country? – Rashtriya Gokul Mission

Explanation : Rashtriya Gokul Mission (RGM) was announced as part of BJP’s poll promise to protect the cow and its progeny. To protect indigenous breeds, such as Punganur, Vechur and Krishna Valley, the Government plans to set up ‘Gokul Grams’ (cow sanctuaries), for which public-private partnerships as well as NGOs will be involved. The Government has kept aside Rs. 500 crore for the mission out of the Rs. 1,200 crore allocated for cattle and dairy development during the 12th Plan. Of this Rs. 150 crore will be spent this fiscal.

………………………………………………………………………….

8) Which Indian online retailer, during July 2014 raised $1-billion (Rs 6,013 crore) of fresh funds in one of the largest funding for any e-commerce company globally? –Flipkart

Explanation : Flipkart is the largest online retailer of India with around 22 million registered users and five million shipments in a month. This massive funding was co-led by existing investors Tiger Global Management and Naspers. Singapore’s sovereign wealth fund GIC, along with existing investors Accel Partners, DST Global, ICONIQ Capital, Morgan Stanley Investment Management and Sofina, also participated in the fund-raising. The company will utilise the proceeds to make long-term strategic investments in India. It is estimated that the firm has, so far, raised over $1.7 billion from investors, including the current transaction.

………………………………………………………………………….

9) Palghar became the 36th and the newest district of Maharashtra on 1 August 2014. It was carved out from which district, which was India’s most populous district? – Thane

Explanation : The proposal for a new, smaller and manageable Palghar district was hanging fire for over two decades. The proposal was finally cleared by the Maharashtra Cabinet on 13 June 2014. With a population of over 12 million, till 31 July 2014, Thane held the distinction of being the most populated district in the country, spread across 9,600 sq.kms of hills, forests and coastal areas.

………………………………………………………………………….

10) Which city would host the 21st Commonwealth Games of 2018? – Gold Coast City (Australia)

Explanation : Gold Coast City is situated in the Queensland province of Australia. The city would host the 21st Commonwealth Games from 4 to 15 April 2018. The hosting rights to Gold Coast City were awarded in November 2011. It thus would be the fifth hosting of these games in Australia, with the earlier stagings in 1938 (Sydney), 1962 (Perth), 1982 (Brisbane), and 2006 (Melbourne).

02 Aug, 2014

1) What is the minimum paid-up capital limit recommended by the Reserve Bank of India (RBI) for those entities who wish to set up payments and small banks, as announced in the draft rules released by it on 17 July 2014? – Rs. 100 crore

Explanation : According to the draft guidelines, existing authorised non-bank pre-paid instrument issuers (PPIs), non-banking finance companies (NBFCs), corporate BCs (business correspondents), mobile telephone companies, super market chains, companies, real sector co-operatives and public sector entities are eligible for setting up a

payments bank. The guidelines allow even banks to take equity position in a payments bank as permitted under the Banking Regulation Act, 1949. The promoters will have to have an initial minimum capital of at least 40%. It has prescribed a lock-in period of five years for promoters’ holding. The central bank has sought suggestions and comments on the draft guidelines by 28 August 2014.

………………………………………………………………………..

2) Which public-sector undertaking (PSU) on 23 July 2014 became the 17th Navratna status company? – Container Corporation of India Limited (CONCOR)

Explanation : The Ministry of Heavy Industries and Public Enterprises, Department of Public Enterprises, Government of India granted Navratna status to CONCOR on 23 July 2014. CONCOR is a PSU engaged in providing comprehensive logistics solutions. It has the largest network of 62 inland container depots (ICDs)/container freight stations in India. In addition to providing inland transport by rail for containers, it has also expanded to cover management of ports, air cargo complexes and establishing cold-chain. The Government of India (GoI) holds 61.80% stake in CONCOR (as per the shareholding pattern as on 30 June 2014).

………………………………………………………………………..

3) Which private sector bank has agreed to buy a 15% stake in beleaguered Multi Commodity Exchange of India Ltd (MCX), announcement of which pushed the stock value of MCX by more than 10% on 21 July 2014? – Kotak Mahindra Bank

Explanation : The commodity market regulator, Forward Market Commission (FMC), had ordered MCX to reduce its promoter- Financial Technologies’ (FT’s) stake from 26 to 2% in December last year after FT was found not fit and proper to own stake in any exchange, following the NSEL crisis. However, since the promoter repeatedly missed the deadline for reducing its stake, the regulator said it would not allow the exchange to issue any new contracts beyond August, unless they did so. The news of Kotak Mahindra Bank’s buyout has thus come at the right time. Prominent investor Rakesh Jhunjhunwala had also acquired nearly 2% stake in MCX for about Rs. 66 crore during July 2014.

………………………………………………………………………..

4) The Bank Employees Federation of India (BEFI) on 19 July 2014 released a list of 1,129 ‘wilful’ corporate loan defaulters on the occasion of the Bank Nationalisation Day. All the companies mentioned in the list had defaulted loans over Rs. 10 crore. What is the approximate aggregate value of these defaulters? – Rs. 54,000 crore

Explanation : The purpose of releasing the list by BEFI on the Bank Nationalisation Day was to put pressure on the defaulters and bank managements. BEFI claimed that a similar list released by unions about five years ago helped some recovery. This list claimed that during the year ended 2013-14, provisioning for Non Performing Assets (NPAs) accounted for Rs. 63,591 crore out of a total operating profit of Rs. 1,27,965 crore. Lanco Mandakini Hydro Energy, Sujana Group, Kingfisher, Progressive Construction, Viceroy Hotels, Regency Ceramics, Nav Bharat International, S Kumars Nationwide Ltd and Deccan Chronicle have been named in the list, among others.

………………………………………………………………………..

5) Who was during July 2014 chosen as the head of the committee formed to review the previous UPA government’s decision to raise the price of natural gas that would have led to a cascading effect on power tariff, urea costs and retail price of piped cooking gas? – Suresh Prabhu

Explanation : Suresh Prabhu is a former Union power minister. An indicative terms of reference for the committee includes revisiting the Natural Gas Pricing Guidelines of 2014 (NGPG 2014) and the C. Rangarajan formula and the possibility of applying the same in its present form or with modifications.

………………………………………………………………………..

6) Which company on 23 July 2014 became the first Indian company to cross market capitalization value of Rs. 5 lakh crore? – Tata Consultancy Services (TCS)

Explanation : Market capitalization is the value of a company’s outstanding shares and is used to determine a company’s size. TCS’s market capitalization crossed 5 lakh crore mark on account of appreciation in the price of TCS scrip following good financial results and record dividend declaration by the company. State-held ONGC’s market cap of around Rs. 3.5 lakh crore is way behind that of TCS. It is worth mentioning that TCS’ market cap is more than the combined market cap of its nearest three rivals – Infosys (Rs 1.90 lakh crore), Wipro (Rs 1.39 lakh crore) and HCL Tech (Rs 1.07 lakh crore).

………………………………………………………………………..

7) The Union Govt. on 19 July 2014 set up an expert committee to look into concerns raised by cost accountants over some provisions in the new Cost Records and Audit Rules. Who is heading this committee? – R. S. Sharma, ONGC’s former Chairman and Managing Director

Explanation : Following notification of the Companies (Cost Records and Audit) Rules 2014, the Council of the Institute of Cost Accountants of India (ICoAI) had expressed concerns over certain provisions of the rules, particularly coverage of sectors of economy under the rules. The other members of the committee will be R K Jain, Additional Secretary in Ministry of Health and Family Welfare, former ICWAI (Institute of Cost and Works Accountants of India) President Chandra Wadhwa, and Aruna Sethi, Adviser (Cost), Ministry of Corporate Affairs.

………………………………………………………………………..

8) Which country on 17 July 2014 became world’s first developed nation to repeal carbon laws that put a price on greenhouse-gas emissions? – Australia

Explanation : Australian upper Senate on 17 July voted 39-32 to scrap the carbon tax that was introduced by centre-left Labour government Prime Minister Julia Gillard in July 2012 and was introduced in November 2013. This tax imposed A $25 (US$23.45) tax per metric tonne of carbon dioxide on country’s worst greenhouse gas polluters. The tax was devised to penalize hundreds the country’s biggest polluters. Australia is one of the largest per capita greenhouse gas emitters due to its reliance on coal-burning power stations to power homes and industry. The carbon tax and plans for an eventual emissions market dominated Australian politics for years, gaining momentum in 2007, when former Labour Prime Minister Kevin Rudd called climate change “the greatest

moral challenge of our time” and made signature of the Kyoto climate protocol one of his first political acts after taking office.

………………………………………………………………………..

9) Which country became the first in the world to legalise child labour during July 2014? – Bolivia

Explanation : While most of the world is trying to diminish child labour, Bolivia has become the first nation to legalise it from age 10. The Congress of this Latin American country had (during early July 2014) approved a legislation legalise child labour from the age of ten. Vice-President Alvaro Garcia signed it into law on 17 July 2014 in the absence of President Evo Morales, who was travelling. Under the legislation, 10-year-olds will be able to work as long as they are under parental supervision and also attend school. It sets 12 as the minimum age for a child to work under contract. They also would have to attend school. The bill’s sponsors say lowering the minimum work age from 14 simply acknowledges a reality: Many poor families in Bolivia have no other choice than for their kids to work. The bill offers working children safeguards.

………………………………………………………………………..

10) Which Southeast Asian country on 20 July 2014 allowed 100% foreign ownership in banks? – The Philippines

Explanation : The order announced on 20 July allows foreign banks to own 100% stock of an existing domestic bank or to open a fully owned subsidiary incorporated under Philippines laws. It replaces a cap of 60% on foreign ownership and abolishes previous rules that allowed just 10 foreign banks in the country. The new law is in preparation for the economic integration of members of the 10-country Association of South-East Asian Nations (ASEAN) in 2015.

19 Jul, 2014

1) What is the definition of affordable housing loans as announced by the Reserve Bank of India (RBI) on 15 July 2014? – Rs. 50 lakh in metros and Rs. 40 lakh in non-metros, given by banks from the proceeds of long-term bonds (of minimum seven years maturity)

Explanation : This announcement was made by the RBI in a bid to boost the housing sector. The RBI also announced that the cost of a house cannot exceed Rs. 65 lakh and Rs. 50 lakh in the metros and non-metros, respectively, to qualify as affordable houses. There are six metros in the country: Mumbai, Chennai, Kolkata, Delhi, Hyderabad and Bangalore. Under the current regulatory regime, loans given by banks to individuals – up to Rs. 25 lakh in metros and Rs. 15 lakh in non-metros – for purchase/construction of a dwelling unit, per family, are considered as affordable housing loans. These loans fall under the priority sector lending category for banks. The RBI said that it will periodically review the definition of affordable housing, on account of inflation. This RBI move is expected to make housing loans up to Rs. 50 lakh cheaper.

……………………………………………………………………………..

2) The fiscal deficit target for year 2015 (2014-15) has been retained at the level announced by former Finance Minister P.Chidambaram in his interim budget. What is this level? – 4.1% of GDP (The fiscal deficit which had touched a high of 5.7% in 2011-12, was brought down to 4.8% in 2012-13 and further to 4.5% in 2013-14)

……………………………………………………………………………..

3) In the Union Budget 2014-15, the govt. announced setting up of a commission to bring in reforms related to spending for achieving maximum output. What is the name given to this commission? – Expenditure Management Commission – EMC

Explanation : The proposed EMC will review the allocated and operational efficiencies of government expenditure to achieve maximum output and will give its interim report within this financial year.

……………………………………………………………………………..

4) The revival of the Kisan Vikas Patra (KVP) was announced in the Union Budget 2014-15 on 10 July 2014. The KVP was discontinued from November 2011 on the recommendation of which committee’s recommendations? – The Shyamala Gopinath Committee

Explanation : The Shyamala Gopinath Committee, in its report submitted on 7 June 2011, had recommended that the KVP be discontinued as it was “prone to misuse, being a bearer-line instrument”. It said the KVP was more popular than the National Savings Certificate (NSC) because of the ease of transfer and liquidity.

……………………………………………………………………………..

5) What special feature has been proposed for currency notes in the Union Budget 2014-15 presented on 10 July 2014? – These currency notes will now also integrate Braille-features to benefit the visually-disabled people

……………………………………………………………………………..

6) What is the proposed name of an integrated Ganga Development Project for which Rs. 2037 crore were allocated in the Union Budget 2014-15? – “Namami Ganga”

……………………………………………………………………………..

7) What is the proposed name of a new 24X7 channel for northeast region that was announced in the Union Budget 2014-15? – “Arun Prabha”

……………………………………………………………………………..

8) Rs. 4200 crore were set for an ambitious Jal Marg Vikas Project on river Ganga in the Union Budget of 2014-15. This project would be established between which two places on Ganga covering a distance of 1620 km? – Allahabad (UP) and Haldia (West Bengal)

……………………………………………………………………………..

9) What is the name given to a dedicated TV channel for farmers that was announced in the Union Budget for 2014-15 and Rs. 100 crore was set aside for its establishment? –Kisan Television (Kisan TV)

……………………………………………………………………………..

10) What GDP growth rate range for 2014-15 was estimated in the Economic Survey 2013-14, which was tabled on 9 July 2014 in the Lok Sabha? – 5.4 to 5.9%

Explanation : GDP growth slowed to below 5% for two consecutive years, i.e. 2012-13 and 2013-14. The Economic Survey envisages a better performance during 2014-15 on account of growth in sectors like manufacturing and mining)

……………………………………………………………………………..

11) What was the fiscal deficit for 2013-14, as disclosed in the Economic Survey 2013-14? – 4.5% of GDP

Explanation : Fiscal deficit is the difference between the government’s expenditures and its revenues. An important factor in the increase in the Centre’s fiscal deficit after 2008-09 has been the sharp increase in subsidies from 1.42% of GDP in 2007-08 to 2.56% of GDP in 2012-13. For 2013-14 the subsidy bill is 2.26% of GDP.

……………………………………………………………………………..

12) The panel headed by C. Rangarajan, former Chairman of PMEAC (Prime Minister’s Economic Advisory Council), has dismissed the Suresh Tendulkar Committee report on estimating poverty. The report submitted by Rangarajan to Planning Minister Rao Inderjit Singh recently stated that the number of poor in India was much higher in 2011-12 at 29.5% of the population. What was the poverty figure stated for the same year in the Suresh Tendulkar Committee report, which was severely criticized for its findings? –21.9% (According to the Rangarajan panel, poverty stood at 38.2% in 2009-10 and slid to 29.5% in 2011-12. This is at variance with the Tendulkar methodology under which poverty was estimated at 29.8% in 2009-10 and declined to 21.9% in 2011-12. This finding of C. Rangarajan committee means that 3 out of 10 persons in India are poor. The Planning Commission in May 2012 had constituted the expert group under C. Rangarajan to review the Tendulkar Committee methodology for estimating poverty)

……………………………………………………………………………..

13) Which state has the highest number of people below poverty line according to the new definition of poverty that is part of the new poverty estimates that have been made by a panel led by C. Rangarajan? – Chhattisgarh

Explanation : According to these estimates 47.9% of Chhattisgarh’s population is below poverty line. Chhattisgarh thus tops the list of states with the highest poverty count. On the other had just 6.3% of Goa’s population is below poverty line and it thus tops the list of states with the lowest poverty count. On a national level, the C. Rangarajan committee report estimated the number of poor at 45.46 crore at 2011-12 prices, which is much higher than the 35.47 crore estimate by the Suresh Tendulkar committee.

……………………………………………………………………………..

14) What is the operating ratio of Indian Railways as announced in the Rail Budget 2014-15? – 94 paise (This means 94 paise put of every Re 1 is utilized. So the surplus for the railways is just 6%)

……………………………………………………………………………..

15) In how many years Indian Railways would be made paperless as proposed in the Rail Budget 2014-15? – 5 years (Facilities like Mobile alerts for wake up calls, arrival alerts and digital reservation charts at station have also been proposed)

05 Jul, 2014

1) The performance ratings of banks operating in India would be put on the public domain from next year. Which entity is rating bank services and would share this information in public domain? – Banking Codes Standards Board of India – BCSBI (BCSBI was set up as an independent and autonomous body in 2007 by the Reserve Bank of India (RBI) to ensure that the common consumer of financial services from the banking industry gets what he/she has been promised. BCSBI is rating banks on customer services on five parameters – information dissemination, transparency, customer-centricity, grievance redressal system and customer feedback. Of the 48 banks rated for customer service, only five received high ratings; 25 were rated above average; 17 average; and one below average. The ratings have been shared with the banks. The ratings were given based on a survey conducted by BCSBI across 69 cities, involving 3,000 branches and 6,000 customers)

………………………………………………………………

2) State Bank of India (SBI) on 1 July 2014 launched six digital branches across the nation to serve tech-savvy customers. One of such branches in Delhi was inaugurated on this day by Finance Minister Arun Jaitley. Other 5 such branches are located in Mumbai, Bangalore, Chennai and Ahmedabad. What is the name given to this new range of branches which will have full digital banking capabilities? – sbiINTOUCH (These sbiINTOUCH branches will include instant account opening with personalised debit cards, instant loan approvals for education, car and home and remote expert advisors available via video links. The new branches will be located in malls and will be primarily aimed at youth, who look for digital banking)

………………………………………………………………

3) Who was re-appointed as the Deputy Governor of the Reserve Bank of India (RBI) on 3 July 2014 by the Union Govt.? – Harun Rashid Khan (The appointment has been made for two years with effect from 4 July 2014 or until further orders, whichever is earlier. Khan was appointed deputy governor in July 2011 for a three-year term, which was set to expire on 3 July. As deputy governor, Khan looks after the foreign exchange department and internal debt management, among others. The other two RBI deputy governors are Urjit Patel and the recently appointed R. Gandhi. The government is yet to appoint a deputy governor to replace KC Chakrabarty, who retired on 25 April 2014)

………………………………………………………………

4) Who headed the committee on Tendulkar Committee methodology for estimating poverty, the report of which was submitted to Planning Commission on 1 July 2014? –C. Rangarajan (C. Rangarajan, the former chief of Prime

Minister’s Economic Advisory Council (PMEAC), submitted the report to planning minister Rao Inderjit Singh. The Planning Commission in May 2012 had constituted the expert group under the then PMEAC chairman C Rangarajan to review the Tendulkar Committee methodology for estimating poverty, following an uproar over the number of poor in the country. The Planning Commission’s estimates had drawn flak in September, 2011 when in an affidavit to the Supreme Court it was stated that households with per capita consumption of more than Rs. 32 in urban areas and Rs. 26 in rural will not be treated as poor)

………………………………………………………………

5) Which public sector financial entity engaged in commercial and development banking operations is celebrating its 50th anniversary (Golden Jubilee) during July 2014? –Industrial Development Bank of India – IDBI (IDBI was established in 1964 under an Act of Parliament as a wholly owned subsidiary of the Reserve Bank of India (RBI). In 1976, the ownership of IDBI was transferred to the Government of India and it was made the principal financial institution for coordinating the activities of institutions engaged in financing, promoting and developing industry in India. IDBI provided financial assistance, both in rupee and foreign currencies, for green-field projects as also for expansion, modernisation and diversification purposes. During September 2004 the RBI incorporated IDBI as a ‘scheduled bank’ under the RBI Act, 1934. Consequently, IDBI, formally entered the portals of banking business as IDBI Ltd. from 1 October 2004. The commercial banking arm, IDBI BANK, was merged into IDBI in 2005)

………………………………………………………………

6) During June 2014 it was reported in some newspapers that the Finance Ministry is considering doubling the exemption limit for investments by individuals in financial instruments to Rs 2 lakh in the forthcoming Annual Budget. This is being sought so as to give a major boost to household savings. What was the savings rate of India during 2012-13, a figure declining continuously since 2007-08? – 30% of GDP (The savings rate of the country stood at 38% of country’s GDP during 2008. There have been demands from bankers and insurers to hike the tax exemption limit from Rs 1 lakh per annum to encourage household savings. The Direct Taxes Code (DTC) too had recommended that the combined ceiling for investments and expenditures be raised to Rs 1.5 lakh per annum)

………………………………………………………………

7) Which body, that during June 2014 submitted its report to the Prime Minister, has recommended that the Planning Commission should be replaced by a reforms and solution body as it exceeds the scope of its authority by acting as a control commission? – Independent Evaluation Office – IEO (The IEO, which was set up by the government in November 2010, from February this year began independently assessing the effectiveness of government programmes and institutional policies. It submitted the assessment report on Planning Commission to Prime Minister during June 2014. IEO in its report stated that since the Planning Commission has defied attempts to reform it to bring it in line with the needs of a modern economy and the trend of empowering the States, it is proposed that the Planning Commission be replaced)

………………………………………………………………

8) Which PSU general insurance company during June 2014 introduced “insurance on wheels” concept for faster renewal of policies? – National Insurance Company Ltd.(Under the scheme, a vehicle will be parked at appropriate

locations in a city. People can renew their policies from there instead of going to the company office. Currently, the service has been introduced in 15-odd cities of the country)

………………………………………………………………

9) The delisting process of which pharma major came under market regulator SEBI’s lens for violation of its regulations on fraudulent and unfair trade practices and SEBI issued an order on 24 June 2014? – AstraZeneca (SEBI said that it started investigating the matter after coming across reports that the offer-for-sale (OFS) done by Astra Zeneca’s promoters in May 2013 was a deliberate attempt to subsequently get the share delisted at ease. On further examination, SEBI found that Astra Zeneca’s two earlier attempts at delisting (2004 and 2010) had been unsuccessful. In its order SEBI directed that the promoters of AstraZeneca shall finally purchase shares from public shareholders in the delisting offer only after seeking approval of the BSE and the NSE)

………………………………………………………………

10) Global e-commerce giant Amazon during May 2014 tied up with N.R. Narayana Murthy, the co-founder of IT services firm Infosys by forming an e-commerce joint venture with his private investment firm. What is the name of this investment firm of Narayana Murthy? – Catamaran Ventures (Murthy’s private investment firm Catamaran Ventures, a Rs. 600-crore fund launched in 2010, has formed a joint venture with Amazon’s Asia unit to create a new entity. This new entity will help small and medium businesses in India. Catamaran Ventures is based in Bangalore)

28 Jun, 2014

1) The Securities and Exchange Board of India (SEBI) on 17 June 2014 came out with a consultation paper on an alternative funding source to help start-ups struggling to raise funds. Under this, funding (in small amounts) is sought from multiple investors through a web-based platform or a social networking site for a specific project, business venture or social cause. What is the name of this funding source which is quite popular in developed countries? – Crowd-funding (According to SEBI’s consultation paper SEBI wants the issue fund-raising capped at Rs. 10 crore a year for each start-up. Only national stock exchanges and SEBI-registered depositories are eligible to set up a crowd-funding platform)

……………………………………………………………..

2) The Reserve Bank of India (RBI) on 17 June 2014 asked banks to make sector-wise disclosure of their advances from 2014-15 onwards with a view to encourage them to actively manage exposure to various segments. This direction was based on which committee’s recommendation on this subject? – Dr. Nachiket Mor Committee (The Committee on Comprehensive Financial Services for Small Businesses and Low Income Households under chairmanship of Dr. Nachiket Mor had recommended that banks actively manage their exposures to various sectors, including priority sectors)

……………………………………………………………..

3) India’s capital market regulator Securities and Exchange Board of India (SEBI) on 19 June 2014 announced a slew of reforms that included a proposal to hike public holding in all public sector undertakings (PSUs), new norms

for research analysts and ESOPs given by listed firms. What is the minimum public shareholding for PSUs as fixed by the SEBI? – 25% or Rs. 400 crore whichever is lower (Currently, PSUs have to maintain 10% of minimum public shareholding, while private companies are required to maintain 25%. Now, the PSUs will be given three years to achieve minimum public shareholding of 25%)

……………………………………………………………..

4) Which bank is organising ‘The Banking and Economics Conclave 2014′ which was inaugurated by Reserve Bank of India (RBI) Governor Raghuram Rajan in Mumbai on 17 June 2014? – State Bank of India – SBI (This conclave is a national level banking conclave that has been organized for the first time. The conclave is on the lines of ‘Bancon’, an event organised by Indian Bank’s Association (IBA) each year. It is also the first time that a commercial bank has organised an event of this magnitude)

……………………………………………………………..

5) The Tax Administration Reform Commission (TARC) headed by Parthasarathi Shome in its first report endorsed the recommendations given by the 1992 committee on tax reforms for abolishing the post of Revenue Secretary in the Ministry of Finance. Who had headed that 1992 committee on tax reforms which had advocated path-breaking tax reforms for the country – Raja J Chelliah (Raja J Chelliah was instrumental in bringing about the early reforms to the direct taxation structure. He served as chairman of Tax Reforms Committee of Union govt. between 1991 and 1993 and he was often called ‘The Father of Tax Reforms’)

……………………………………………………………..

6) The Delhi Government on 17 June 2014 announced that the national capital has become the first ‘kerosene-free city’ in the country. Which scheme was implemented in the city which enabled it to do away with the sale of non-subsidised kerosene in the city – ‘Delhi: A Kerosene-Free City Scheme, 2012’ (The scheme was launched in 2012 in collaboration with three oil marketing companies and the Union Ministry of Petroleum and Natural Gas for which Delhi Government had incurred an expenditure of Rs. 62 crores. With delhi being kerosene-free, India is expected to save upto Rs. 200 crore annually)

……………………………………………………………..

7) The Wholesale Price Index (WPI) for the month of May 2014 touched a 5-month high as higher food prices and fuel costs fuelled price rise. What was the WPI for May 2014 which was released on 16 June 2014? – 6.01% (The WPI for April 2014 was 5.20%. As per the data released by the government, core inflation was at 3.8% as against 3.4% last month. Primary article inflation stood at 8.58% as against 7.06% last month. Food article inflation was at 9.50% as against 8.64% last month while non-food article index was up at 1.5%)

……………………………………………………………..

8) AirAsia India, the Indian arm of the Malaysian no-frills airline headed by Tony Fernandes, on 12 June 2014 became the fifth budget carrier in India as its maiden flight took off on the day. This first flight of AirAsia was between which two destinations? –From Bangalore to Goa (AirAsia became the fifth budget (no-frills) airline in

India after IndiGo, JetLite, SpiceJet and GoAir. AirAsia India is a three-way venture between the Malaysia-based low-cost airline, India’s Tata Group and investment firm Telestra Tradeplace)

……………………………………………………………..

9) The shareholders of Reliance Industries Limited (RIL) got an opportunity to cast their votes through e-voting system at company’s 40th Annual General Meeting (AGM) held on 18 June 2014 at Mumbai. RIL shareholders cast their votes by touching the touch-pads of tablet computers that were brought by volunteers individually to them. However, the Ministry of Corporate Affairs had deferred mandatory e-voting for shareholders till which date? – 31 December 2014 (Thus e-voting for shareholders would become mandatory for companies from 1 January 2015. An advantage of e-voting is that under it one share has one vote while under the earlier system one person has one vote. In the traditional voting at company AGM’s hands were shown or lifted in support of a proposal and it was not more than a mere formality)

……………………………………………………………..

10) Who was during June 2014 appointed the arbitrator from the Union Finance Ministry in the Rs.20,000-crore tax dispute case with U.K. telecom major Vodafone? –Justice (Retd.) R. C. Lahoti, Former Chief Justice of India (The government’s decision was in response to an arbitration notice served by Vodafone International Holdings B.V. in April 2014 under the Bilateral Investment Protection and Promotion Agreement between India and the Netherlands for resolving the dispute. The Union Cabinet had approved the conciliation with Vodafone in June last year in a bid to resolve the capital gains tax dispute related to its 2007 acquisition of Hutchison Whampoa’s stake in Hutchison Essar)

13 Jun, 2014

1) The Reserve Bank of India (RBI) on 3 June 2014 announced its first bi-monthly monetary policy review after the new government took charge at the Centre. RBI Governor kept the most important repo rate unchanged at 8% and almost all other important rates were also unchanged. Which is the only rate which was changed? – Statutory Liquidity Ratio – SLR (The SLR of scheduled commercial banks was reduced by 50 basis points from 23% to 22.5%. This reduction is expected to infuse liquidity in the economy by unlocking around Rs. 40,000 crore of bank funds)

………………………………………………….

2) The RBI in its bi-monthly monetary policy announced on 3 June 2014 raised the eligibility limit for foreign exchange remittances from $75,000 to – $1,25,000 (It was earlier possible to remit up to $2,00,000 under the liberalised remittance scheme. This was reduced to $75,000 last year, as a prudential measure when the country was going through a sudden depreciation of its currency. However, this limit was raised to $1,25,000, thus acknowledging the recent stability on the forex front. This effectively meant that individuals would now be able to spend upto $1,25,000 abroad)

………………………………………………….

3) The Reserve Bank of India (RBI) in its bi-monthly monetary policy announced on 3 June 2014 allowed both residents and non-residents (except citizens of Pakistan and Bangladesh) to take out Indian currency notes up to

Rs 25,000 while leaving the country. What was the limit for this at present? – Rs.10,000 (Currently, only Indian residents were allowed to take notes up to Rs 10,000 out of the country)

………………………………………………….

4) Which country would become the 19th member of Eurozone and the last Baltic nation to adopt the euro on 1 January 2015 as announced by the European Commission on 4 June 2014? – Lithuania (European Commission announced that Lithuania has fulfilled all conditions to join the Eurozone and it recommended that the country would become the currency bloc’s 19th member on 1 January 2015. Lithuania would be the last Baltic nation to adopt the euro, after Estonia did so in 2011 and Latvia followed suit at the beginning of 2014)

………………………………………………….

5) Kotak Mahindra Bank shares slipped after the RBI asked it to reduce its promoters’ shareholding. The bank is to reduce its promoters’ shareholding to what level by September 2014 as directed by the RBI? – 40% (Currently, the promoters’ shareholding in the bank is 43.58%. Hence, the bank’s promoters are required to shed 3.58% of their share. In June 2012, the RBI had asked Kotak Mahindra Bank to reduce the promoters’ holding to 20% by 2018 and 10% by 2020 from the then 45.21%. This move is to diversify the promoters’ shareholding and bring it in sync with the new banking licence regulations and thereby improve corporate governance. Kotak Mahindra Bank is a private-sector bank owned by Uday Kotak)

………………………………………………….

6) India’s market capitalization during June 2014 crossed which major milestone after around 4 years, mainly on the back of a strong government at the Centre? – 1.5 trillion dollar (The recent spurt in the market has also propelled India to be the 10th biggest in terms of market cap, and the second biggest in the BRIC group of countries, behind China which is at $3.23 trillion. In rupee terms, India’s market cap is at an all-time high of Rs 89.8 lakh crore. At the current level, India’s market cap-to-GDP ratio is about 0.79. However, this is much lower than the levels seen during the last bull market of 2007-08, when the ratio was nearly 2)

………………………………………………….

7) Curtains may be down on the UP Stock Exchange (UPSE), Uttar Pradesh’s only trading platform, as the deadline issued by the Securities and Exchange Board of India (SEBI) expired on 30 May 2014. The SEBI had fixed conditions for UPSE according to which the annual turnover of the exchange would have to be around Rs. 1,000 crore and its net-worth should be at-least Rs. 100 crore. In which city is the UPSE situated? –Kanpur (Kanpur-based UPSE failed to meet any of the two conditions prescribed by the SEBI)

………………………………………………….

8) What is the name of Prime Minister Narendra Modi’s mega-dream project of India’s only International Financial Services Centre (IFSC) being conceptualised as a global financial and IT services hub, which on 3 June 2014 announced having achieved financial closure for its Phase I infrastructure development? – Gujarat International Finance Tec-City (GIFT City) – The GIFT City is being designed to be at or above par with globally-benchmarked financial centres like those at Shinjuku (Tokyo), Lujiazui (Shanghai), La Defense (Paris) and London Dockyards. A

consortium of banks agreed to provide a loan of Rs 1,157 crore for this project. The project, spread over 886 acres, including a 261-acre SEZ on the outskirts of Gandhinagar, is expected to involve investments of Rs 78,000 crore when completed by 2026)

………………………………………………….

9) Al Hilal Bank, one of the fastest-growing banks in the UAE, has implemented Finacle e-Banking solution. Finacle e-Banking solution is a leading banking solution of which Indian IT company? – Infosys (The Finacle e-Banking solution would enable Al Hilal to provide a range of Internet banking services to its corporate customers with highest security. It would also allow the bank to roll out new functionalities on a regular basis and build upon the existing products to provide an enhanced banking experience, all at reduced costs)

………………………………………………….

10) Prime Minister Narendra Modi on 8 June 2014 unveiled a new book titled “Getting India Back on Track: An Action Agenda For Reform”. The book basically carries a series of papers on different areas for presentation to the new government arguing out the case for the reforms that would be necessary to get India back on track. Who are the editors of this book? – Bibek Debroy, Ashley J. Tellis and Reece Trevor (The book has been published by Carnegie Endowment for International Peace. The foreword of the book has been written by Ratan N Tata and it contains insightful essays by eminent academicians and public policy experts)

12 Jun, 2014

1) RBI Deputy Governor R Gandhi during May 2014 said that the RBI is proposing to permit opening of small bank accounts by merely filling up a form without any document for address or identity proof. This is being proposed in a bid to increase access to banking services. However, these proposed small accounts would come with some limitations. What are these limitations?

* These accounts will have limitations on credit/debit balances

* Will be available only at core banking solution-enabled branches

* No foreign remittances will be permitted

* Will be available only for 12 months — further extension on application for officially valid document

* The aggregate of all credits in a financial year cannot exceed Rs. 1 lakh

* The aggregate of all withdrawals and transfers in a month cannot exceed Rs.10,000

* The balance at any point in time should not exceed Rs.50,000

2) The Reserve Bank of India (RBI) on 21 May 2014 eased gold import norms which were imposed during July 2013. This was done following representations from jewellers, bullion dealers, banks, and trade bodies. What’s the main provision announced under this? – Select trading houses, in addition to already permitted banks, have been

allowed to import gold (The RBI in July last year had imposed severe restrictions on gold imports in order to check the burgeoning current account deficit and sliding rupee. Now Star trading houses/premier trading houses (STH/PTH) have been allowed to import gold under 20:80 gold import scheme)

3) Shares of state-run banks rose as much as 5% after an RBI panel report said that the Government should reduce the holdings in PSU lenders to below 50%. Who headed this panel? – PJ Nayak, ex-Chairman of Axis Bank (The report was released on 13 May 2014 and had mainly stated that Government should cut its holding in public sector banks to below 50%, criticising the way in which the lenders are being governed)

4) The Reserve Bank of India (RBI) has put on hold its decision to make Aadhaar-based biometric authentication for transactions mandatory. The Supreme Court had earlier asked the government not to link Aadhaar with any social benefit schemes and subsidies. What was the main reason for this decision of the RBI? – Huge time taken for Aadhaar’s biometric authentication and high set up costs (In the testing phase, biometric authentication took up to 30 seconds even on 3G connections, as opposed to 5 seconds otherwise. Banks were also worried about huge set-up costs needed to enable the required infrastructure for biometric authentication)

5) What major relief was announced by the Reserve Bank of India (RBI) on 7 May 2014 for takers of housing, auto and personal loans? – It directed all the commercial banks not to levy any penalty on pre-payment of loans under floating rate scheme that cover housing, auto as well as personal loans (The RBI advised that banks will not be permitted to charge foreclosure charges/ pre-payment penalties on all floating rate term loans sanctioned to individual borrowers, with immediate effect. Floating loan products include housing, corporate, vehicle and personal loans. Two years ago, RBI had barred banks from levying foreclosure charges or pre-payment penalties on home loans on floating interest rate basis)

6) The Reserve Bank of India (RBI) on 6 May 2014 issued the guidelines allowing minors to operate bank accounts independently with a view to promote financial inclusion and bring uniformity in opening of such accounts in banks. What is the prescribed age for minors to operate bank accounts, as announced by the RBI in this guideline? – Above 10 years (According to the guidelines issued by the RBI, minors above 10 years of age can open and operate independently savings bank account and use other facilities like ATM and cheque books)

7) A high-level committee recommended recasting of the Index of Industrial Production and (IIP) Wholesale Price Index (WPI) with an objective to present a more realistic picture of the economy. Who is heading this high-level committee which recently submitted its report? – Saumitra Chaudhuri, Member, Planning Commission and Prime Minister’s Economic Advisory Council (The committee submitted its report on the IIP and WPI during last week of April 2014. The whole exercise of recasting these indexes was aimed at making the indices reflect each other)

8) Which country was ranked as the cheapest among the major world economies in a latest report by Germany’s Deutsche Bank? – India (According to this recently released report India is the cheapest major economy on the basis of prices of products comparable across countries. The report claimed that a weaker rupee has allowed India to remain the cheapest major economy despite the highest inflation. Australia was ranked as the most expensive major economy while the United States was ranked as the cheapest developed country. Brazil was again listed as the most expensive among developing countries)

9) IPL franchisee Delhi Daredevils during May 2014 launched a co-branded cricket credit card in partnership with which commercial bank? – The Ratnakar Bank Ltd(This was the first time that a commercial bank and a leading cricket franchise came together to launch a co-branded cricket credit card. The card brings to its cardholders exclusive privileges like meeting and greeting the Delhi Daredevils team, personal and original memorabilia, coaching camps, free match tickets, talk shows, etc.)

10) The iconic Ambassador car of India is almost on its way to become history as its owner company the C.K. Birla Group-promoted Hindustan Motors (HM) on 24 May 2014 suspended work at its oldest factory near Kolkota. Where is this famous factory situated? – Uttarpara (The work was suspended due to almost negligible demand for Ambassador car, which was once the lifeline of whole India. Around 2,500 workers working in the Uttarpara plant are facing the risk of losing their jobs. Ambassador was the first car to be completely made in India some 6 decades back)

01 Jun, 2014

1) How much amount was collected by India’s largest banking group the State Bank of India (SBI) recently in overseas debt sale through a dual tranche bond programme, which make it the largest ever offering from a domestic issuer? – $1.25 billion (The bank raised $750 million in 5-year money at US treasury interest rate plus 205 basis points, while it priced the 10-year $500 million issue at 225 bps over the treasury. The overseas debt sale programme was completed on 10 April 2014)

2) Which country during 2013 overtook Mauritius as the top gateway of money being brought in by overseas investors through the foreign direct investment (FDI) into Indian markets? – The United States (According to the data available with the Indian capital markets regulator SEBI during April 2014, the US accounted for the largest chunk of assets under the FDI mode being invested in the Indian equity and debt markets at the end of 2013 with over Rs 4.37 lakh crore worth funds. The US was followed by Mauritius with over Rs 3.31 lakh crore worth ‘assets under custody (AUC)’ of FIIs and their sub-accounts as on 31 December 2013)

3) Which international financial institution on 11 April 2014 completed its first global rupee bond programme worth $ 1 billion? – International Finance Corporation (IFC) – Washington D.C. headquartered-IFC completed this huge issue in three rounds and the third and final round of bond issue totalling Rs 12 billion (about $ 194 million) was completed on 11 April. Under its global rupee bond programme, IFC has also issued three-year bonds totalling Rs 30 billion and five-year bonds totalling Rs 20 billion. This issue was launched to strengthen India’s capital markets and attract greater foreign investment)

4) According to the data released by World Bank Group’s International Comparison Program (ICP) during April 2014, India became the third largest economy in the world. This was a rapid climb for India as it was ranked at 10th spot in 2005. However, this ICP study was not based on evaluation of actual GDPs of countries. On which basis was this ranking done by ICP? – On Purchasing Power Parity – PPP (The GDP of various countries was evaluated on PPP and it was evaluated that the purchasing power parities -based world GDP amounted to $90,647 billion)

5) With the implementation of new Companies Act from 1 April 2014, a majority of the top 200 listed companies will need to change their auditors over the next three years. According to the new Companies Act, it is now mandatory for the companies to change their auditors after how many years? – 10 years (The latest notified section 139 of the Companies Act 2013 makes it mandatory for audit firms to be changed after every 10 years. This has been done in a bid to ensure objectivity and prevent the alleged cozy relations between management and auditors)

6) India retained the top spot in the world in foreign exchange remittances from its migratory workforce during 2013. How much remittance was received by India during the year? – $70 billion (India was followed by China ($60 billion), Philippines ($25 billion), Mexico ($22 billion), Nigeria ($21 billion), Egypt ($17 billion), Pakistan ($15 billion), Bangladesh ($14 billion), Vietnam ($11 billion) and Ukraine ($10 billion) in the top 10 remittance recipient nations in the world. This data was disclosed in a World Bank report on remittances, which is an annual exercise that underscores the point that remittances are an important source of foreign exchange. One important fact is that remittance received by India was more than the $65 billion it earned from country’s flagship software services exports)

7) Which two international cement companies announced their merger on 7 April 2014, which would now create world’s largest cement manufacturing company? – Holcim of Switzerland and Lafarge of France (Holcim and Lafarge would merge to create a new company which would be called “LafargeHolcim”. It would have cement manufacturing operations in around 90 countries and sales of around $44 billion. The deal will give the group a market value of close to $60 billion)

8) Who was appointed the new Finance Secretary on 15 April 2014? – Arvind Mayaram (Arvind Mayaram is presently the Economic Affairs Secretary and replaced Sumit Bose who retired on 31 March 2014)

9) Which famous American bank came to news during April 2014 for miscalculating a measure of the capital on its books which reduced its capital level by $4 billion? – Bank of America (Bank of America (BoA) is the second-largest U.S. bank. It on 28 April 2014 announced that regulators had suspended its plan to buy back more shares and raise its dividend after the bank realized it had miscalculated a measure of the capital on its books. The bank said fixing the mistake reduced a capital level by $4 billion, or about three-quarters of the extra money that the Federal Reserve had approved its returning to shareholders over the next year.

10) Which leading banking luminary was appointed as the special advisor of the interim President of BCCI-IPL Sunil Gavaskar on 11 April 2014? – Deepak Parekh, Chairman of HDFC (Parekh will be a special invitee during the IPL governing council meeting as his vast experience in financial affairs will enable Gavaskar to ensure smooth functioning if IPL for next two months)

18 May, 2014

1) The Reserve Bank of India on 2 April 2014 granted in-principle approval of bank licences to which two entitites? – IDFC Limited and Bandhan Financial Services Private Limited (These two firms pipped to post 23 other applicants, which included some well-known financial and industrial houses like Muthoot Finance, Reliance Capital, Tata Sons, IFCI, Aditya Birla Nuvo, Bajaj Finserv, LIC Housing Finance, L&T Finance Holdings and Shriram Capital. IDFC was established in 1997 and acts as a specialized financial intermediary for infrastructure projects. Bandhan Financial is India’s largest micro finance institution with over 4.5 lakh borrowers and was set up in 2002)

………………………………………………….

2) Who was appointed as the new Deputy Governor of the Reserve Bank of India (RBI) on 3 April 2014? – R. Gandhi (He was appointed by the Union Govt. for a period of three years. The appointment follows Anand Sinha relinquishing his charge as Deputy Governor in mid-January 2014. The RBI now has four Deputy Governors – KC Chakrabarty, HR Khan, Urjit Patel and R. Gandhi. However, KC Chakrabarty too had announced his retirement and RBI is also seeking a replacement for him)

………………………………………………….

3) The Finance Ministry released a draft of the Direct Taxes Code (DTC) on 1 April 2014. This draft focuses on raising more revenue from high net worth individuals, while leaving the slabs unchanged for others. In this draft high slab of income-tax has been proposed for individuals and Hindu Undivided Family (HUF) belonging to ‘super-rich’ category. What is the criterion of income for this ‘super-rich’ category? – Annual income above Rs. 10 crore

………………………………………………….

4) What is the proposed tax slab for super-rich individuals and Hindu Undivided Family (HUF) in the draft of the Direct Taxes Code (DTC), which was released on 1 April 2014? – 35%

………………………………………………….

5) What is the proposed additional tax on those earning over Rs 1 crore through dividend income in the draft of the Direct Taxes Code (DTC), which was released on 1 April 2014? – 10%

………………………………………………….

6) In its first bi-monthly monetary policy statement issued on 1 April 2014, the RBI announced which major relief for saving bank account holders? – It asked banks to cut down services on low-balance accounts and do away with fines (In this regard the RBI said that it proposes to frame comprehensive consumer protection regulations based on domestic experience and best global banking practices. Instead of levying penal charges for non-maintenance of minimum balance in ordinary savings bank accounts, banks should limit services available on such accounts to those available to basic savings bank deposit accounts and restore the services when the balances improve to the minimum required level)

………………………………………………….

7) Private sector bank Axis Bank on 27 March 2014 launched its own Kisan Credit Card, which is aimed at helping farmers access liquidity round-the-clock. The bank claimed that it is first new generation private sector bank to launch an electronic Kisan Credit Card on the RuPay platform. In which year the Kisan Credit Card scheme was launched? – in 1998 (The scheme was introduced in August 1998 and since then, a host of banks, a majority of them in the state-run space, have launched such cards)

………………………………………………….

8) The capital market regulator, the Securities and Exchange Board of India (SEBI) on 29 March 2014 got back the power to act against ponzi schemes, illegal deposit schemes and assess call data records in securities-related offences after the SEBI Ordinance was re-promulgated. This happened after the Finance Ministry managed to get the nod of the Election Commission and Cabinet on re-promulgation of the SEBI Ordinance and finally from the President. Under this ordinance, which pooled money schemes would be compulsorily registered with the SEBI? – Schemes with deposits over Rs. 100 crore(This Ordinance lapsed on 17 January 2014 after the Government failed in getting the Securities (laws) Amendment Bill passed in the monsoon, winter and extended winter session of the 15th Lok Sabha, which was adjourned sine die on 21 February 2014)

………………………………………………….

9) The Reserve Bank of India (RBI) on 27 March 2014 extended the deadline for implementation of Basel III norms by the Indian banks to 31 March 2019. What was the earlier deadline for implementation of this norm? – 31 March 2018 (Under this norm Indian banks need to have a core capital ratio of 8% and a total capital adequacy ratio of 11.5% against the present 9%. The norm has been devised to strengthen the regulation, supervision and risk management of the banking sector)

………………………………………………….

10) Who was appointed as the new President of the Confederation of Indian Industry (CII) during March 2014? – Ajay S. Shriram (Ajay S. Shriram is the Chairman and Sr. Managing Director of DCM Shriram Ltd and he was elected as the President of CII for 2014-15. He succeeds S Gopalakrishnan of Infosys as the new President. Naushad Forbes, Director, Forbes Marshall, has been elected as the Vice-President)

20 Apr, 2014

1) Who headed the committee on Credit Information Reports (CIRs), which submitted its report to the Reserve Bank of India (RBI) during March 2014? – Aditya Puri, Chairman of HDFC Bank (This committee recommended that customers should be given a free copy of their credit profile as it would help in promoting financial discipline among loan seekers. The committee also recommended use of common data formats and a common data quality index that could assist credit institutions in determining the gaps in data)

……………………………………………………………….

2) Which infrastructure finance company during March 2014 received RBI approval to set up a minimum of 9,000 white label ATMs (WLAs) in the next three years in rural India? – SREI Infrastructure Finance Ltd (The company received a certificate of authorisation from the RBI to set up, own and operate a payment system for WLAs effective 25 March 2014. Through these WLAs, the infrastructure financial institution will be able to take financial products and services of the sponsor bank to the doorstep of the rural population)

……………………………………………………………….

3) What is the name of the pre-paid/remittance provider associated with the m-Pesa platform, which during March 2014 started a pan-India inter-bank money transfer service by joining hands with the Immediate Payment Service (IMPS) of the National Payments Corporation of India (NPCI)? – Mobile Commerce Solutions Ltd (MCSL) – With this tie-up, an MCSL (m-Pesa) user can send money to customers of any IMPS-enabled bank using NPCI’s remittance platform. The National Payments Corporation of India (NPCI) is the umbrella organisation of all retail payment systems in India, set up with the support of the Reserve Bank of India and Indian Banks’ Association (IBA). Immediate Payment Service (IMPS) is a remittance processing platform offered by NPCI that offers instant, 24X7, electronic funds transfer through mobile, Internet or ATM between banks and pre-paid providers)

……………………………………………………………….

4) Union Government on 21 March 2014 sold its 9% stake in which private sector bank? – Axis Bank (The stake was divested through the Specified Undertaking of UTI (SUUTI), which was formed in 2003 is an offshoot of erstwhile UTI and held 20.72% in Axis Bank. The other promoters of the bank are Life Insurance Corporation, General Insurance Corporation, New India Assurance and National Insurance Company)

……………………………………………………………….

5) The Reserve Bank of India (RBI) on 19 March 2014 allowed five domestic private banks to import gold. This decision is expected to give a boost to gold supplies and bring down premiums gold prices in India, which is the

world’s second-biggest consumer after China. Which 5 banks are these? – HDFC Bank , Axis Bank, Kotak Mahindra Bank, IndusInd Bank and YES Bank (Experts of the global gold market believe that this could be a significant step towards easing of tough curbs on the metal imposed last year to cut the country’s trade deficit)

……………………………………………………………….

6) Which state scored the highest in monthly per capita consumer expenditure (MPCE) report rankings for urban areas which was released during March 2014 by the National Sample Survey Organisation (NSSO)? – Haryana (Haryana’s MPCE stood at Rs. 3817 and it was followed by Kerala (Rs. 3,408) and Maharashtra (Rs. 3,189). Among urban areas, Bihar (Rs. 1,507) shows the lowest monthly per capita consumption expenditure. The 68th round survey on level and pattern of consumption expenditure was conducted by the NSSO between July 2011 and June 2012)

……………………………………………………………….

7) Which state scored the highest in monthly per capita consumer expenditure (MPCE) report rankings for rural areas which was released during March 2014 by the National Sample Survey Organisation (NSSO)? – Kerala (Kerala’s MPCE stood at Rs. 2,669 and it was followed by Gujarat (Rs. 2,581) and Punjab (Rs. 2,345). Among rural areas, Orrisa (Rs. 1,003) displayed the lowest MPCE. The 68th round survey on level and pattern of consumption expenditure was conducted by the NSSO between July 2011 and June 2012)

……………………………………………………………….

8) What is the name of the Deputy Governor of the RBI who resigned on 20 March 2014? – KC Chakrabarty (He resigned on personal grounds three months ahead of completion of his term. Chakrabarty was appointed as Deputy Governor in June 2009 for a period of three years. In 2012, he got an extension of two years)

……………………………………………………………….

9) Indian market regulator SEBI on 19 March 2014 passed an order against Financial Technologies (FTIL), declaring it as not fit and proper to hold any shares directly or indirectly in any stock exchange or clearing corporation. FTIL presently holds equity stakes in which stock exchanges of the country? – MCX Stock Exchange (MCX-SX), National Stock Exchange (NSE), Delhi Stock Exchange (DSE), Vadodara Stock Exchange (VSE) and MCX-SX Clearing Corporation (MCX-SX CCL) – As per this SEBI order, all these holdings will need to be disposed of within 90 days. In December 2013, the Forward Markets Commission (FMC) had declared FTIL as not fit and proper to hold two per cent or more of the equity share capital in the Multi Commodity Exchange of India Ltd (MCX))

……………………………………………………………….

10) Union Govt. on 18 March 2014 launched the exchange traded fund of Central public sector enterprises (CPSE-ETF) hoping to raise Rs 3,000 crore. The long awaited CPSE-ETF is an open-ended scheme comprising of shares of 10 Central public sector enterprises and it includes ONGC, Coal India Limited, GAIL, Indian Oil Corporation (IOC), Rural Electrification Corporation (REC), Oil India Limited (OIL), Container Corporation of India Limited (CCIL), Power Finance Corporation (PFC), Engineers India Limited (EIL) and Bharat Electronics Limited (BEL). Which financial

entity is managing this ETF? – Goldman Sachs India MF (The CPSE-ETF tracks an index fund but trades like a stock on the exchange and is yet another avenue for the Union Govt. for selling its stake in CPSEs)

09 Apr, 2014

1) Which round of Inflation Expectations Survey was launched by the Reserve Bank of India (RBI) on 3 March 2014? – 35th (These inflation expectations are to be based on subjective assessments of about 5,000 households across 16 cities. The survey seeks qualitative responses from households on price changes (they foresee in general prices as well as prices of specific product groups) in the next three months as well as in the next one year and quantitative responses on current, three-month ahead and one-year ahead inflation rates)

…………………………………………………………………………………………………………………………………………………………..

2) The Reserve Bank of India (RBI) on 3 March 2014 extended the deadline for the public to exchange currency notes printed before 2005 up to which date? – 1 January 2015 (Now the public would be able to exchange currency notes printed before 2005 by 1 January 2015. The RBI on 22 January 2014 had announced that it would withdraw from circulation all pre-2005 currency notes from 1 April 2014. Post-2005 notes have added security features and help in curbing the menace of fake currency)

…………………………………………………………………………………………………………………………………………………………..

3) Which PSU bank sold its entire stake in credit information provider Credit Information Bureau of India Limited (CIBIL) to Transunion International Inc (TII) during March 2014? – Central Bank of India (Central Bank had 5% stake in CIBIL while TII is the majority shareholder in CIBIL at 27.5%. State Bank of India and ICICI Bank carry 10% each, while rest of 2.5% is with Sundaram Finance Ltd. Among others, Bank of Baroda, Bank of India, Punjab National Bank, Union Bank, Citicorp Finance (India), HSBC, Standard Chartered Bank, Indian Overseas Bank and HDFC Ltd each hold 5% stake in CIBIL)

…………………………………………………………………………………………………………………………………………………………..

4) Union Government on 28 February 2014 approved the proposal to ensure Rs. 1,000 minimum monthly pension under a scheme of Employees Provident Fund Organisation (EPFO). This pension would be provided under which EPFO scheme? – Employees’ Pension Scheme-95 (EPS-95)

…………………………………………………………………………………………………………………………………………………………..

5) The Union government on 4 March 2014 announced raising the interest rates on select fixed deposit schemes offered by post offices. Maximum increase of 0.2% per annum (20 basis points) was announced on which two schemes offered by post offices? – 1-year term deposit and 2-year term deposit (The interest on these two schemes was raised from the present 8.2% per annum to 8.4% per annum. On the other hand rate of interest was raised by 0.10% (10 basis points) on 3-year term deposit, 5-year term deposit and 5-year recurring deposit schemes. This increase would come into effect from 1 April 2014)

…………………………………………………………………………………………………………………………………………………………..

6) Reserve Bank of India (RBI) on 13 March 2014 hiked the trade related remittance limit from Rs. 2 lakh to Rs. 5 lakh per transaction. What was the reason for this increase? – Increase in the number of transactions handled by exchange houses (There is a rapid increase in the number of the permitted transactions under the Rupee Drawing Arrangements (RDAs) due to rapid developments in the communication facilities)

…………………………………………………………………………………………………………………………………………………………..

7) Nishi Vasudev on 1 March 2014 became the first woman to become head of a prominent blue-chip PSU. Which PSU is this? – Hindustan Petroleum Corp Ltd. – HPCL(She replaced Subir Roy Choudhury)

…………………………………………………………………………………………………………………………………………………………..

8) Who took over as the new Chairman and Managing Director (CMD) of Allahabad Bank on 11 March 2014? – Rakesh Sethi (Prior to this elevation, Sethi was an executive director at Punjab National Bank)

…………………………………………………………………………………………………………………………………………………………..

9) Which two state-owned companies on 14 March 2014 bought 10% government stake in Indian Oil Corp (IOC) for Rs 5,340 crore? – Oil and Natural Gas Corp (ONGC)and Oil India Ltd (OIL) – In off-market transactions, ONGC and OIL bought 5% stake each at Rs. 220 per share. This stake sale doubled government’s disinvestment proceeds for the current fiscal to Rs 10,434 crore. An Empowered Group of Ministers (EGoM) headed by Finance Minister P Chidambaram had on 28 February 2014 decided to sell the stake in IOC, the nation’s largest oil firm, at a discount of 10% through an off-market deal)

…………………………………………………………………………………………………………………………………………………………..

10) Which state was ranked as the most industry-friendly state in a Deloitte Touche Tohmatsu study sponsored by the Planning Commission? – Haryana (This study shows that Haryana, Gujarat and Madhya Pradesh are the top three industry-friendly states in the country. Orissa occupied fourth positioned whereas fifth place was given to Andhra Pradesh. Bihar ranks sixth, while Kerala, Rajasthan, Tamil Nadu and Nagaland followed it. Among the bottom five states West Bengal, Maharashtra, Assam, Goa and Jharkhand occupied top five places respectively. This study was commissioned by the Planning Commission in 2013 and consultancy firm Deloitte Touche Tohmatsu was asked to rate states based on certain parameters that would help them improve the regulatory ecosystem for the manufacturing sector. However the report was not officially released due to the Model Code of Conduct imposed by the Election Commission)

18 Mar, 2014

1) The Cabinet Committee on Economic Affairs (CCEA) during February 2014 gave its approval for foreign equity participation up to 74% of the paid-up capital of which private bank based in Kerala? – Federal Bank (The 74% foreign equity permission comes with sub-limit of 49% for FIIs and 24% for NRIs)

……………………………………………………………………………………………………………………………………………………………….

2) State-run United Bank of India (UBI), which is going through serious financial mess on account of huge increase in non-performing assets (NPAs), is expected to be provided with how much additional funds by the union govt. to

meet its capital requirements? –Rs. 1,000 crore (The bank will issue perpetual non-cumulative preference shares to the govt. to over the crisis created by its ballooning NPAs. UBI’s CMD Archana Bhargava had quit the post last week citing health problems. The bank had been earlier stopped from issuing any loans above Rs. 10 crore by the RBI)

……………………………………………………………………………………………………………………………………………………………….

3) India’s first all-women bank – Bharatiya Mahila Bank (BMB) during February 2014 tied up with which public-sector general insurance company for launching 3 health insurance products for women account holders of the bank? – New India Assurance(These policies, BMB Sakhee, BMB-Nirbhaya and BMB-Parivar Suraksha provide customised package of health insurance policies from New India Assurance. While Sakhee Policy aimed at rural women, offers covers up to Rs 50,000, the Nirbhaya schemes offers cover limit up to Rs 5 lakh. Parivar Suraksha offers family floater facilities)

……………………………………………………………………………………………………………………………………………………………….

4) During February 2014 who became the first Indian to be elected President of Administrative Tribunal of the Asian Development Bank (ADB)? – Lakshmi Swaminathan (Swaminathan is the seventh president of the Tribunal. She is the first Indian to become the president of the Tribunal. Of the previous six presidents, two had been from the US, two from Philippines, one from Sri Lanka and one from the UK. Swaminathan is a jurist in administrative law and was the vice chairman of the Principal Bench at Delhi of the Central Administrative Tribunal. Manila headquartered ADB consists of 64 member countries, including India)

……………………………………………………………………………………………………………………………………………………………….

5) India’s first Post Office Savings Bank ATM was inaugurated on 27 February 2014 by Finance Minister P. Chidambaram at – Chennai (India’s first Post Office Savings Bank ATM was inaugurated at Thiyagaraya Nagar Head Post Office in Chennai. This initiative of opening Post Office Savings Bank ATM is part of the government’s Rs. 4,909 crore IT modernisation scheme for the Department of Posts specified in the interim budget for 2014-15)

……………………………………………………………………………………………………………………………………………………………….

6) Ennore port was on 26 February 2014 officially renamed as Kamarajar Port Ltd. The decision, which came a few days ago in the form of Union Cabinet approval, was formalised with Union Shipping Minister GK Vasan unveiling a plaque at a function organised by the port at Chennai on 26 February. Tamil Nadu has the maximum number of major ports (three) in India. Which are the other two major ports in Tamil Nadu? –Chennai and Tuticorin

……………………………………………………………………………………………………………………………………………………………….

7) What is the name of the volatility index launched by the National Stock Exchange on 26 February 2014 which has been based on the index options prices of Nifty? – India VIX (India VIX would provide future contracts facility to investors and would help investors hedge near-term volatility risks in their equity portfolio. India VIX indicates the investor’s perception of the market’s volatility in the near term. The index depicts expected market volatility over the next 30 calendar days. A high India VIX value would suggest that the market expects significant increase in volatility, while a low value indicates the reverse. India VIX and Nifty have a negative correlation)

……………………………………………………………………………………………………………………………………………………………….

8) Who was appointed as the new Chairman and Managing Director of Oil and Natural Gas Corporation Limited (ONGC Ltd.) on 26 February 2014? – Dinesh K. Sarraf (The Appointments Committee of the Cabinet (ACC) approved the appointment of Sarraf, who at present is the Managing Director of ONGC’s overseas arm, ONGC Videsh Limited (OVL). Sarraf replaces Vasudeva who turned 60 on 25 February and retires on 28 February. The Union Govt. earlier rejected Oil Minister M. Veerappa Moily’s proposal to give Sudhir Vasudeva a post-retirement extension. ONGC Ltd. is India’s most profitable company)

……………………………………………………………………………………………………………………………………………………………….

9) What is the name of the bitcoin exchange, which was once the largest bitcoin exchange in the world and which on 25 February 2014 came to news for virtually disappearing from the internet with many millions of dollars of customer deposits? –Mt. Gox (Mt. Gox’s website was down on 25 February and its founder was unaccounted-for during the day. MtGox is a Tokyo-based exchange which allowed users to trade Bitcoins for US Dollars and several other currencies. MtGox was going through some serious problems after news surfaced that almost 750,000 bitcoins (currently worth more than £200m) were missing in the exchange and this theft went unnoticed for several years)

……………………………………………………………………………………………………………………………………………………………….

10) Which public sector undertaking (PSU) was during February 2014 kept out of the proposed Central Public Sector Enterprises (CPSE) Exchange Traded Fund (ETF)? – PowerGrid Corporation (With the exit of PowerGrid Corporation the CPSE ETF would now consist of 10 PSU firms. These 10 PSUs are – ONGC, Coal India Limited, GAIL, Indian Oil Corporation (IOC), Rural Electrification Corporation (REC), Oil India Limited (OIL), Container Corporation of India Limited (CCIL), Power Finance Corporation (PFC), Engineers India Limited (EIL) and Bharat Electronics Limited (BEL). The proposed CPSE ETF will serve as an additional mechanism for the government to monetise its shareholdings in those CPSEs that eventually form part of the ETF basket)

…………………………………………………………………………………………

12 Mar, 2014

1) Union Finance Minister P. Chidambaram presented the Vote-on-Account on 17 February 2014, which would take care of union expenses until the government’s term ends in May 2014. What the expected fiscal deficit was for 2013-14, as announced in this vote-on-account? – 4.6% of GDP (The fiscal deficit, which is the gap between expenditure and revenue, was 4.9% of GDP in the previous financial year. Earlier fiscal deficit was expected to be around 4.8%. As per current indications, the fiscal deficit has come down mainly on account of expenditure compression and higher realisation from the 2G spectrum auction)

……………………………………………………………………………………………………………………………………………………………….

2) What is the expected agricultural growth rate for 2013-14, as announced in the Vote-on-Account on 17 February 2014? – 4.6%

……………………………………………………………………………………………………………………………………………………………….

3) Union govt. announced a moratorium on interest for educational loans in the Vote-on-Account presented on 17 February 2014. With this announcement 9 lakh student borrowers are expected to benefit to the extent of Rs. 2,600 crore. Educational loans taken before which year would be given moratorium on interest? – 2009

……………………………………………………………………………………………………………………………………………………………….

4) What is the total outlay for defence for 2014-15, as announced in the Vote-on-Account on 17 February 2014? – Rs. 2,24,000 crore, which is 10% more than that of 2013-14

……………………………………………………………………………………………………………………………………………………………….

5) A venture capital fund for scheduled castes (SCs) with an initial capital of Rs. 200 crore was announced in the Vote-on-Account presented on 17 February 2014. Which financial entity would set up this VC fund? – IFCI

……………………………………………………………………………………………………………………………………………………………….

6) Which two business segments were exempted from the service tax in the Vote-on-Account presented on 17 February 2014? – Blood banks and provider of rice warehousing facilities

……………………………………………………………………………………………………………………………………………………………….

7) What is the name of the proposed agency for better management of the government’s borrowings which was announced by the Union Finance Minister P. Chidambaram in his vote-on-account on 17 February? – Public Debt Management Agency – PDMA (Chidambaram announced that the Centre is ready with the Public Debt Management Agency Bill and that the proposed agency will be established as a non-statutory body and is expected to begin work in the next fiscal. Former finance minister Pranab Mukherjee had first announced setting up of PDMA in his budget speech of 2011-12. The PDMA is expected to consist of RBI officials, civil servants and people from the private sector)

……………………………………………………………………………………………………………………………………………………………….

8) The Reserve Bank of India (RBI) during February 2014 constituted a committee to examine the recommendations of the Financial Sector Legislative Reforms Commission (FSLRC) relating to capacity building in the banking sector. The committee has been tasked with the responsibility of identifying capacity building requirements keeping in view the role of financial sector and what it should deliver. Who is heading this 9-member committee? – G Gopalakrishna (G Gopalakrishna is an Executive Director in the RBI. The committee will examine the skills required at various levels/operations to deliver on the required role and also identify qualifications relevant to specific areas of operation in banks and non-banks. Further, it will evolve methodologies for prescribing certification for required qualifications)

……………………………………………………………………………………………………………………………………………………………….

9) What is the name of the chairperson and managing director of Kolkata-headquartered United Bank of India (UBI), who took voluntary retirement on 20 February 2014? – Archana Bhargava (Archana Bhargava was appointed

as United Bank’s CMD in April 2013 and her appointment was up to February-end 2015. Her retirement comes in the wake of a surge in bad loans and the bank posting a loss in the third quarter. United Bank’s gross non-performing assets jumped 194% to Rs. 8,545.50 crore (includes fresh slippage of Rs. 3,172 crore in the October-December quarter) as at December-end 2013 against Rs. 2,902 crore as at December-end 2012)

……………………………………………………………………………………………………………………………………………………………….

10) India Post (Dept. of Posts) on 13 February 2014 launched electronic Indian Postal Order (e-IPO) for Indian Citizens living in India. e-IPO facilitates paying online fee for which purpose? – For seeking information under the RTI (e-IPO is a facility to purchase an Indian Postal Order electronically for paying RTI fee online through e-Post Office Portal (https://www.epostoffice.gov.in) or India Post web-site (www.indiapost.gov.in). After paying the fee online one just need to annex the print-out of the receipt to the RTI application. Earlier last year the Department had launched the e-IPO on 22 March 2013 for Indian Citizens living abroad across the globe)

……………………………………………………………………………………………………………………………………………………………….

11) Indian market regulator SEBI on 13 February 2014 cleared new corporate governance norms that require listed companies to justify CEO salaries, put in place whistle-blower policies and have orderly succession plans. What is the main objective of this new norm? – To exhort listed companies and their top executives to follow ‘Good Business Practices’ (The new norms were cleared by the SEBI board on 13 February and the relevant provisions would be incorporated in the listing agreement soon. The board also cleared new KRA (KYC Registration Agency) Regulations that would make it easier for the investors to comply with Know Your Client (KYC) requirements across various segments of the capital markets)

23 Feb, 2014

1) RBI Governor Raghuram Rajan announced on 12 February 2014 that in coming days Indian citizens without a bank account would be able to withdraw cash from an ATM (automated teller machine) with the help of mobile technology. Payment banks will play important role in facilitating this system under which a payment system will facilitate funds transfers from bank account holders to those without accounts through ATMs. Which committee had recently recommended establishment of payment banks? –Nachiket More Committee on Financial Inclusion (The interesting proposal essentially is that the sender can go to an ATM with a participating bank and ask the money to be withdrawn from his account. The intermediary then processes the payment and sends a code via mobile to the recipient. The recipient takes that code to the nearest ATM of that participating bank, punches in the code and withdraws the money)

……………………………………………………………………………………………………………………………………………………

2) Till February 2014, the Reserve Bank of India has issued the certificate of authorisation to how many non-bank entities for setting up and operating white label ATMs (WLAs) in India? – Four (The entities which got the permission are Tata Communications Payment Solutions; Prizm Payment Services, Mumbai; Muthoot Finance , Kochi and Vakrangee Limited, Mumbai. In June 2012, the RBI issued guidelines permitting non-bank entities to set up and operate WLAs in the country after seeking the RBI’s authorisation under the Payment and Settlement Systems Act, 2007. Prior to this, only banks were permitted to set up and operate ATMs in India. As many as 17

entities had sought the RBI nod for WLAs. WLAs serve customers from all banks and will be connected with the entire ATM network in the country)

……………………………………………………………………………………………………………………………………………………

3) Plastic notes in the denomination of Rs. 10 will be introduced on a trial basis in which five cities in the second half of 2014, as stated by the Union Government on 7 February 2014 in the Parliament? – Kochi, Mysore, Jaipur, Shimla and Bhubaneswar

……………………………………………………………………………………………………………………………………………………

4) Indian public sector banks went on a two-day strike from 10 February 2014 after the conciliation effort made by the Central Chief Labour Commissioner to avert the all-India bank strike scheduled failed. Which bank union made a call for this strike? – United Forum of Bank Unions – UFBU (The talks between the UFBU and the Indian Banks’ Association over a five-year wage revision package, held in New Delhi on 6 February 2014 failed as UFBU alleged that the bank managements had nothing new to offer)

……………………………………………………………………………………………………………………………………………………

5) What is the name of India’s first public sector unit (PSU), the revival plan for which was approved by the Cabinet Committee on Economic Affairs (CCEA) on 13 February 2014? – ITI Limited, which was formerly known as Indian Telephone Industries Ltd (The company was established in 1948 and was incorporated in 1950 under the then Mysore Companies Act, 1938 and later converted as the first PSU of the country to assist the Government in the sensitive and strategic telecommunication field. The company was referred to the Board of Industrial and Financial Restructuring (BIFR) in 2004-05 and declared a sick company. BIFR had recommended a revival plan for ITI Ltd. The revival plan will be supported through financial restructuring by fund infusion of Rs. 4,156.79 crore)

……………………………………………………………………………………………………………………………………………………

6) Which company will become India’s first telecom player to be fully owned by a foreign company following approval of company’s FDI proposal by the Cabinet Committee on Economic Affairs (CCEA) on 6 February 2014? – Vodafone (The CCEA on 6 February approved the telecom major Vodafone’s Rs 10,141 crore (or $1.6 billion) proposal to buy out minority shareholders in its Indian unit. This is the single largest foreign investment in the telecom sector)

……………………………………………………………………………………………………………………………………………………

7) The Indian Banks’ Association (IBA) during February 2014 issued an advisory to banks to ensure business continuity after Microsoft ends support for its popular Windows XP operating system on 8 April 2014. In its advisory it drew the attention of banks to a study by Microsoft in which it claimed that very large number of Indian public bank branches would become vulnerable following the U.S.-based firm’s decision to stop support to Windows XP. How many public sector bank branches were claimed to be affected? – 34,000 (The fiscal impact of this could be as much as a loss of business opportunity worth Rs.1,100 crore in a day and a loss of income worth Rs.330 crore over a period of three days. Windows XP – launched in October, 2001 – is three generations behind the latest operating system Windows 8, which was launched in October, 2012)

……………………………………………………………………………………………………………………………………………………

8) Who will head the 7th Central Pay Commission which will revise salaries of over 50 lakh central government employees and remuneration of 30 lakh pensioners? – Justice Ashok Kumar Mathur, former Judge of the Supreme Court (The composition of the 7th Central Pay Commission was approved by the Prime Minister recently. The other members of the Commission, include, Oil Secretary Vivek Rae (full time Member), NIPFP Director Rathin Roy (part-time Member) and OSD in Expenditure Department Meena Agarwal (Secretary). The Commission has been mandated to submit its report in two years time and its recommendations would be implemented from January 1, 2016. Earlier in September 2013, the Prime Minister had approved setting up of the 7th Pay Commission)

……………………………………………………………………………………………………………………………………………………

9) The National Organisation of Bank Workers (NOBW) demanded immediate reconstitution of the erstwhile Banking Services Recruitment Board (BSRB) to save banks from staff crunch and work overload. NOBW claimed that due to disbanding of BSRB recruitment process in the banking sector has almost come to a standstill and as a result banking transactions have suffered. When was BSRB disbanded? – in 2005 (This demand was made at NOBW’s Golden Jubilee Celebrations held at Nagpur on 3 February 2014. NOBW also claimed that most of the staff in the public sector banks was working beyond their specific limit, thereby affecting not only their output but also the overall functioning of the institutions)

……………………………………………………………………………………………………………………………………………………

10) Who took over as Asian Development Bank’s new Country Director for India on 3 February 2014? – Teresa Kho (She was heading the Bangladesh Resident Mission of ADB and replaced Hun Kim, who is now Deputy Director General of ADB’s South Asia Department in Manila)

16 Feb, 2014

1) India Post (Indian postal department) during January 2014 announced an ambitious plan to install as many as 3,000 ATMs and 1.35 lakh micro-ATMs at its post offices across the country for savings account holders. This plan was rolled-out by installing three ATMs in New Delhi, Chennai and Bangalore on 5 February 2014 and ramping it up gradually. What is the tentative deadline given by India Post for installing these 3,000 ATMs and 1.35 lakh micro-ATMs? – September 2015 (Under this plan, 1,000 ATMs with the India Post branding will be put in within the first year, which will be ramped up massively to 3,000 in the next 18 months. To start with, the ATMs can be used only by 26 crore savings account-holders who save with the postal department but India Post hopes that within six months of the launch, it will get the interoperability permission from the Reserve Bank of India (RBI). Postal savings are worth around Rs 6.05 trillion, which is half the savings in the largest lender SBI and more than double that of the largest private sector lender ICICI Bank)

………………………………………………………………………………………………………………………………………………….

2) What is the new Repo Rate after Reserve Bank of India (RBI) Governor Raghuram Rajan on 28 January 2014 increased it by 0.25% under RBI’s third quarter monetary policy review? – 8% (This move is expected to translate into higher EMIs and push up the cost of borrowing for corporates. Consequently, the Reverse Repo Rate under

the Liquidity Adjustment Facility (LAF) will be revised to 7% and the marginal standing facility rate and bank rate to 9%. However, the RBI kept the cash reserve ratio (CRR) unchanged at 4% as liquidity seems to be comfortable)

………………………………………………………………………………………………………………………………………………….

3) The RBI released the Macroeconomic and Monetary Developments Report along with the third quarter monetary policy review on 28 January 2014. What is RBI’s broad expectation about economic growth rate (GDP Growth Rate) during 2013-13? – GDP growth rate will remain below 5% (The RBI said the growth is expected to fall below 5% in 2013-14 in absence of pick-up in manufacturing sector, but likely to recover to 5.5% in the next financial year (2014-15). In the first half of 2013-14, the GDP growth was at 4.6%)

………………………………………………………………………………………………………………………………………………….

4) What is the name of a new fund announced on 27 January 2014 by the National Innovation Council (NInC) and the Ministry of Micro, Small and Medium Enterprises to combine innovation and the dynamism of enterprise to solve the problems of citizens at the bottom of the economic pyramid in India? – India Inclusive Innovation Fund – IIIF(The fund, launched by Sam Pitroda, head of the NInC, is an autonomous Rs. 500-crore fund, with the Union Government contributing 20%. The balance will come from public sector banks, financial institutions, insurance companies, multilateral/bilateral development agencies, Indian & global corporates)

………………………………………………………………………………………………………………………………………………….

5) What was the GDP growth rate figure for Indian economy for 2012-13 declared by the Union Government on 31 January 2014? – 4.5% (This GDP growth rate is 0.5% lower as compared with the earlier estimate of 5% on account of subdued performance in agriculture, mining and manufacturing. Growth in 2012-13 is the lowest in a decade, with the previous low of 4% recorded in 2002-03. The estimates for 2012-13 were released by the Central Statistics Office (CSO) under the Ministry of Statistics and Programme Implementation)

………………………………………………………………………………………………………………………………………………….

6) The Cabinet Committee on Political Affairs (CCPA) on 30 January 2014 raised the subsidised LPG cylinder quota from 9 to 12 per year per household. It also decided to put on hold the direct benefit transfer scheme for LPG which linked payment of subsidy directly into the bank accounts of the consumers under the Aadhaar platform. After increase in the cap on subsidized LPG cylinders what percentage of LPG cylinders are now covered by subsidisd cylinders? – Around 97% (Petroleum and Natural Gas Minister Veerappa Moily disclosed that 89.2% of the 15 crore LPG consumers use up to nine cylinders in a year and only 10% have to buy the additional requirement at the market price. After the quota is raised to 12, about 97% of the LPG consumers would be covered by subsidised LPG)

………………………………………………………………………………………………………………………………………………….

7) In a first of its kind venture, six public sector undertakings (PSUs) including state-run Bharat Heavy Electricals Limited (BHEL) and Power Grid Corporation of India Limited (PGCIL) on 29 January 2014 announced joining hands to set up world’s largest 4,000 MW ultra mega solar power project in Rajasthan. Where in Rajasthan this solar plant spread across 19,000 acres is going to be established? – Sambhar (The project will be the largest single

location solar plant spread across 19,000 acres at Sambhar in Rajasthan. It entails an investment of Rs. 7,500 crore in the first phase. The JV will have equity of 26% from BHEL, 23% from SECI (Solar Energy Corporation of India), 16% from SSL (Sambhar Salt Ltd), 16% from PGCIL, 16% from SJVNL (Satluj Jal Vidyut Nigam) and 3% from REIL (Rajasthan Electronics & Instruments Limited))

………………………………………………………………………………………………………………………………………………….

8) India’s first monorail – Mumbai Monorail was opened for the general public on 2 February 2014 after being inaugurated on 1 February. Which authority owns and operates this monorail project? – Mumbai Metropolitan Region Development Authority (MMRDA) – The Rs. 3,000-crore Mumbai Monorail project is being implemented in two phases. The MMRDA has already spent Rs. 1,900 crore of Rs. 3,000 crore allocated for the project, including the civil work for the second phase. Commercial operations of the 8.9-km first phase connecting Wadala-Chembur stations on the northeastern fringe of Mumbai metropolis commenced on 2 February with the first train leaving the Wadala station at 7am. The Mumbai Monorail is not just the first in the country, but across the subcontinent. Monorails are in operation in China, Japan, Singapore, Australia, Dubai, Europe, and the Americas

………………………………………………………………………………………………………………………………………………….

9) Vakrangee Ltd., which is engaged in providing e-governance solutions, recently came to news for banking related activities. Why? – It has received final authorization for operating White Label ATM (WLA) license from Reserve Bank of India (RBI) – Under, the RBI license, the company is entitled to set up and run minimum 15,000 ATMs across the country in next three years. White label ATMs are those which are not run by the Banks but by a non- banking entity in its own brand name (like Vakrangee ATM) after passing through all the stringent qualification and due-diligence process undertaken by RBI)

………………………………………………………………………………………………………………………………………………….

10) Tata Chemicals on 23 January 2014 celebrated its platinum jubilee (75th year) and on this occasion company’s Managing Director R. Mukundan rang the opening bell on the Bombay Stock Exchange. At which place 75 years back Tata Chemicals established its first centre of salt and soda ash production? – Mithapur – Gujarat (Tata Group was associated with Mithapur in 1939 when it took over the Okha Salt Works at Mithapur near Okha. Mithapur, situated between Okha and Dwarka, is a small colony supported by Tata Chemicals Limited, which is one of the flagship companies of the Tata Group)

09 Feb, 2014

1) To promote women entrepreneurship, the country’s first women’s bank – the Bharatiya Mahila Bank (BMB) – has chosen to do away with collateral for loans availed by women. The BMB will provide collateral-free loans for amounts up to Rs 1 crore. Which entity would cover the risk under this initiative? – Credit Guarantee Fund Trust for Micro and Small Enterprises – CGTMSE (The CGTMSE is a credit guarantee scheme, where a premium is paid either by the lender or the applicant, provides a guarantee cover for up to 80% of loans availed by women owned or operated micro- and small enterprises. For loans availed for smaller amounts such as Rs 20,000, the bank will completely waive off the requirement for collateral)

…………………………………………………………………………………………………………………………………………………..

2) In a major overhaul of foreign investment regime, the government is considering splitting overseas inflows into two categories – Foreign Portfolio Investment (FPI) and Foreign Direct Investment (FDI) – with a minimum composite cap of 49%. The proposal envisages an aggregate automatic limit of 24% of FPI, which may be raised up to the extent of FDI permitted under the automatic route. Constituting two categories for foreign investments is considered by which panel? – Mayaram Panel (The government had set up a four-member committee headed by Economic Affairs Secretary Mayaram to define FDI and FII and remove the ambiguity between them. The Committee submitted its final report during the last week of January 2014)

…………………………………………………………………………………………………………………………………………………..

3) Who was the head of RBI’s committee on strengthening monetary policy framework, which in its recommendations has suggested that the target for inflation should be set at 4% with a band of +/- 2% around it? – Urjit Patel, Deputy Governor of the RBI (This inflation target is in view of vulnerability of the Indian economy to supply/external shocks and the relatively large weight of food in Consumer Price Index (CPI))

…………………………………………………………………………………………………………………………………………………..

4) The Reserve Bank of India during January 2014 constituted an 8-member expert committee to review the governance of bank boards in India, which includes examining the ownership and salary structure of banks. Who heads this committee? – PJ Naik, former Chairman and CEO of Axis Bank (The committee will review the regulatory compliance requirements of the board of directors of banks, judge what can be rationalised and where requirements need enhancements, examine the working of the boards, including whether adequate time is being devoted to issues of strategy, growth, governance and risk management)

…………………………………………………………………………………………………………………………………………………..

5) Which bank came to highlight during January 2014 for declaring an interim dividend of 9000%, which is said to be the highest in India’s banking industry? – Tamilnad Mercantile Bank – TMB (Tuticorin-based TMB took a decision to this effect at a meeting held on 18 January 2014. This dividend stands at Rs. 900 per share of Rs 10 each, for the fiscal ending March 2014. This is the second year in a row that the bank has declared such a high dividend. The bank’s board had approved a dividend of Rs 750 per share for 2008-09 and Rs 1,000 per share the following year)

…………………………………………………………………………………………………………………………………………………..

6) Who retired as Deputy Governor of the Reserve Bank of India (RBI) on 20 January 2014? – Anand Sinha (With Anand Sinha relinquishing his charge as Deputy Governor, the RBI re-allocated his portfolios among the remaining three Deputy Governors — K.C. Chakrabarty, H.R. Khan and Urjit Patel. Sinha was in-charge of eight departments, including Departments of Banking Operations and Development, Risk Management, Information Technology and Expenditure and Budgetary Control)

…………………………………………………………………………………………………………………………………………………..

7) The Union Government on 20 January 2014 allowed the establishment of an ad hoc authority to recommend the pricing of the passenger and cargo segments. What is the name of this authority? – Rail Tariff Authority (Rail

Tariff Authority will have a Chairman and four members. The decision to have an ad hoc arrangement through a government resolution was taken because establishing it through an executive order, as had been desired by the Cabinet, was not feasible given that under the Railway Act only the Railway Board can decide on the prices of rail services. For constitution of the RTA, an amendment to the Railway Act, 1989, is also necessary)

…………………………………………………………………………………………………………………………………………………..

8) A prominent Indian credit rating agency along with four other rating agencies from Europe, Asia, Africa and Latin America during January 2014 launched a new credit rating outfit ARC Ratings S.A. The network-based rating agency would provide credit rating services to cross-border corporates in terms of accessing global capital. Which Indian rating is involved in this initiative? – CARE – Credit Analysis and Research (ARC Ratings will be an equally held entity and have its operational headquarters in London. Each partner’s shareholding is capped at a maximum of 25%. ARC will rate sovereign debt, financial institutions, non-financial corporations as well as structured products)

…………………………………………………………………………………………………………………………………………………..

9) China’s economy grew by 7.7% in 2013, which is far below the standards of China – world’s second-largest economy. The economic growth rate of 2013 is the lowest since which year? – 1999 (2013’s growth is the lowest in 14 years. This marks the slowest growth since 1999, when China grew 7.6%. The previous decade saw record double-digit growth, with the country defying the global slowdown to grow 10.4% in 2010 as it unveiled a massive $ 586 billion stimulus. This declining growth underlines the challenges faced by China as it grapples with rebalancing and reviving a slowing down economy)

…………………………………………………………………………………………………………………………………………………..

10) Which stock exchange retained its position as the world’s largest bourse in terms of equity trades for the second consecutive year in 2013? – India’s National Stock Exchange (NSE) – NSE recorded almost 145 crore equity trades on its platform last year, a gain of 3% from 2012, making it the biggest among 51 global peers, according to data with the World Federation of Exchanges (WFE). Rival exchange BSE slipped one place to eighth position. Although it has more than 4,000 listed companies, the BSE recorded 34.46 crore trades last year, a drop of 3% compared to 2012. China’s Shenzhen Stock Exchange recorded 129 crore trades, climbing three places to become the second-largest bourse in the world. Trades on the Shenzhen SE, which pushed NYSE Euronext to third place, rose 38% from 2012

25 Jan, 2014

1) According to announcement made by Union Finance Minister P. Chidambaram on 12 January 2014 the Centre has revised its target upwards to opening 10,000 new bank branches a year. This has been part of Centre’s initiative of taking banking services to rural areas. What was the earlier target? – 7,000 branches (From the coming financial year, it has been revised to open 10,000 branches a year and through this, an additional 55,000 new jobs are expected to be created)

………………………………………………………………………………………………………………………………………………….

2) Which major bank during January 2014 came out with plans to outsource the management of some of its ATMs by taking calls from vendors? – State Bank of India(SBI called for a Request for Proposal (RFP) from vendors to manage about 7,843 cash dispensers (ATMs). Vendors will be expected to have all capabilities to remotely capture and initiate appropriate action in the event of any problems at these cash dispensers. They will be expected to ensure that the downtime of these ATMs in metro and urban areas is less than 3%, while it is less than 6% in rural areas. SBI had 32,777 ATMs as of 30 September 2013. It has expanded its network steadily in the past few years, adding about a third of its network (about 11,000 ATMs) in the past 18 months. ATM operations have however not been profitable)

………………………………………………………………………………………………………………………………………………….

3) Retirement fund-body the Employees’ Provident Fund Organisation (EPFO) on 13 January 2014 decided to increase the rate of interest on Provident Fund deposits to 8.75 per cent for 2013-14, a move that will benefit about 5 crore subscribers. What was the present rate of interest for EPFO subscribers? – 8.5% (The Central Board of Trustees, which is the apex decision-making body of the Employees’ Provident Fund Organisation (EPFO), met on 13 January and approved the interest rate. The EPFO’s recommendation will now be vetted by the Finance Ministry. Once the ministry approves the decision, the interest would be credited to the accounts of subscribers. The EPFO is estimated to have an income of Rs 20,796.96 crore in the current financial year)

………………………………………………………………………………………………………………………………………………….

4) The Reserve Bank of India (RBI) during January 2014 clarified that the provision of prior RBI nod applies for establishments from Hong Kong and Macau to set up business or related activities in India. As per the existing conditions this provision pertaining to RBI’s approval applies on which 6 countries? – Afghanistan, Bangladesh, China, Iran, Pakistan and Sri Lanka (As per the existing conditions under the Foreign Exchange Management Regulations, no entity or citizens of these 6 countries is allowed to set up any branch office or a liaison office or a project or any other such business activity without prior permission of the RBI)

………………………………………………………………………………………………………………………………………………….

5) The government Union on 10 January 2014 gave its approval to the plan to form an Exchange Traded Fund (ETF) comprising scrips of 11 bluechip state-owned companies, which will be offered in the market with a view to garnering Rs 3,000 crore this fiscal. Which are the 11 state-owned companies (PSUs) involved in this ETF plan? – ONGC, Coal India Limited, GAIL, Power Grid, REC, Oil India Limited, Container Corporation of India, Power Finance Corporation, Indian Oil Limited, Engineers India Limited and Bharat Engineering Limited (ETF is a security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange. The PSU ETF would comprise shares of various profitable state-owned companies. The composition of ETF and weightage of the shares of individual PSU in the index has been decided by the EGoM)

………………………………………………………………………………………………………………………………………………….

6) SEBI on 10 January 2014 notified new norms empowering its Chairman to order search and seizure operations during investigations, while necessary safeguards have also been put in place to protect rights of affected persons. This would add extra power to SEBI’s crackdown against fraudsters. What is the name of the ordinance

promulgated by the Union government in September 2013, which had conferred explicit powers on SEBI Chairman to authorise investigating authority or any other officer of SEBI to conduct search and seizure under the SEBI Act? – Securities Laws (Amendment) Second Ordinance, 2013 (The new norms providing SEBI with powers to conduct search and seizure have been finalised after taking into account suggestions from public and other stakeholders to draft regulations, which were issued in November 2013)

………………………………………………………………………………………………………………………………………………….

7) Which bank during January 2014 became the first Indian domestic private sector bank to have a branch presence in China? – Axis Bank (Axis Bank recently opened its branch in Shanghai after receiving permission from the China Banking Regulatory Commission (CBRC). The branch will engage in foreign currency businesses that includes all business approved by the banking supervision and regulatory authorities of the China. With opening of Shanghai branch, Axis Bank’s overseas presence has grown to eight – one each in Singapore, Hong Kong, Dubai, Colombo, and Shanghai, two representative offices at Dubai and Abu Dhabi and an overseas subsidiary in London)

………………………………………………………………………………………………………………………………………………….

8) Which private asset management company (AMC) January 2014 became the first private sector fund house to launch an inflation indexed fund that aims to provide inflation-adjusted returns to investors? – Deutsche Asset Management India – DAMI(DAMI’s scheme, ‘DWS Inflation—Indexed Bond Fund’ is an open—ended debt fund and will open for subscription on 16 January 2014, and close on 27 January. Inflation indexed bonds (IIBs) are instruments where interest payment and principal are linked to whole sale price index (WPI) inflation and these bonds are currently available at an attractive yield of 3.6% above WPI. Government has been issuing IIBs on a monthly basis since June, 2013 and the current outstanding issuance stands at Rs 6,500 crore as of now)

………………………………………………………………………………………………………………………………………………….

9) SEBI (Securities and Exchange Board of India) Chairman UK Sinha’s term was extended by 2 years during January 2014. Sinha will now head the regulatory body till 16 March 2016. Among the last four chairmen, Sinha is the only one whose term has been extended. Who is the only SEBI chief to have held the post for a longer duration than Sinha? – D.R. Mehta (Mehta served as SEBI Chairman for 7 years (1995-2002). Sinha’s three predecessors – GN Bajpai (2002-2005), M Damodaran (2005-2008) and CB Bhave (2008-2011) – had only got a three-year terms)

………………………………………………………………………………………………………………………………………………….

10) The three day 12th Pravasi Bharatiya Divas (PBD) was held between 7-9 January 2014 at Vigyan Bhawan, New Delhi. What was the theme of this year’s PBD? – Engaging Diaspora: Connecting Across Generations (PBD is celebrated on 9th January every year to mark the contribution of Overseas Indian community in the development of India. January 9 was chosen as the day to celebrate this occasion since it was on this day in 1915 that Mahatma Gandhi, the greatest Pravasi (non-resident citizen), returned to India from South Africa, led India’s freedom struggle and changed the lives of Indians forever)

13 Jan, 2014

1) The committee constituted by the Reserve Bank of India (RBI’s) to promote financial inclusion headed by Nachiket Mor in its report, presented to the RBI on 7 January 2014, recommended universal electronic bank accounts to all Indian citizens above the age of 18 years. What is the deadline for opening these bank accounts as recommended by the committee? – 1 January 2016 (The committee has recommended that an instruction to open the bank account should be initiated by the Unique Identification Authority of India (UIAI) after the issue of an Aadhaar number to an individual over the age of 18. It also recommended that the RBI should issue a circular indicating that no bank can refuse to open an account for a customer who has adequate KYC proof which specifically includes Aadhaar)

…………………………………………………………………………………………………………………………………………………

2) Which country became the 18th member of Eurozone on 1 January 2014? – Latvia(The former Soviet republic on the Baltic Sea recently emerged from the financial crisis to become the EU’s fastest-growing economy. Latvia was given final clearance to join Eurozone on 9 July 2013 by finance ministers of the 28-nation European Union. It should be noted that 28-member EU is a political entity and represents the interest of all of Europe whereas Eurozone is a currency block of 18 nations that have accepted Euro as a common currency. Not all countries of EU use Euro as currency (Britain still uses Pound as its currency))

…………………………………………………………………………………………………………………………………………………

3) The Reserve Bank of India (RBI) on 31 December 2013 dismissed rumours that it has stopped banks from accepting scribbled currency notes from 1 January 2014 and announced that banks will continue to accept currency notes with scribbling. However, it reiterated that writing or scribbling on banknotes works against its policy to keep currency notes clean and sought co-operation from public, institutions and others in keeping the banknotes clean by not writing anything on them. What is the name of this policy which was released during 2013? – ‘Clean Note Policy’ (RBI in 2013 had said it has been noticed that at certain branches of banks, the practice of writing/scribbling on the body of the bank notes continues to remain in vogue. Under the present system of mechanised processing of banknotes inscription or scribbling on any part of the banknote would render it to be classified as unfit for reissue)

…………………………………………………………………………………………………………………………………………………

4) The Reserve Bank of India (RBI) on 23 December 2013 warned users, holders and traders of virtual currencies, including bitcoins, of financial, operational, legal, customer protection and security related risks. Why was this warning given by the RBI for bitcoins type currency, which is digital or virtual currency that uses peer-to-peer technology to facilitate instant payments? – Because bitcoins as a medium for payments are presently not authorised by any central bank or monetary authority in India (Bitcoin is an alternative currency, which uses cryptography for security, making it difficult to counterfeit. Bitcoin issuance and transactions are carried out collectively by the network, with no central authority. The central bank said it was keeping watch at the developments relating to certain electronic records claimed to be decentralised digital currency such as bitcoins, litecoins, bbqcoins, dogecoins and their usage or trading in the country)

…………………………………………………………………………………………………………………………………………………

5) Union government during December 2013 announced decision to covert the National Institute for Micro, Small and Medium Enterprises (NIMSME) into the National SME (Small and Medium Enterprises) University. NIMSME is situated at –Hyderabad (This decision was announced at the golden jubilee celebrations of NIMSME held on 21 December 2013 at Hyderabad)

…………………………………………………………………………………………………………………………………………………

6) Who on 20 December 2013 was appointed as the first woman managing director of the Life Insurance Corporation of India (LIC) by the Government? – Usha Sangwan (She became the first woman MD in corporation’s history since its establishment in 1956. With this appointment, LIC is set to function at its full strength of four MDs after almost two years. These would be S B Mainak, Sushobhan Sarkar, Sangwan and V K Sharma)

…………………………………………………………………………………………………………………………………………………

7) Indian financial markets were left surprised by Reserve Bank of India (RBI’s) mid-quarter monetary policy review released on 18 December 2013 as all key policy rates were left unchanged in this review presented by RBI Governor Raghuram Rajan. The short-term lending rate was kept unchanged at 7.75%, while the cash reserve ratio (CRR) remained at 4%. Why markets were left surprised with this move? – Because markets had expected another 25 bps hike in the short-term lending rate due to persistent high inflationary pressure (The RBI said it will take calibrated action in the future, based on inflationary trends and action by the US Federal Reserve)

Key highlights of RBI’s mid-quarter review of monetary policy

- Key policy rate, cash reserve ratio unchanged

- Repo rate unchanged at 7.75%; cash reserve ratio unchanged at 4%

- RBI to wait for more data before taking policy action

- Outlook on global growth continues to remain moderate

…………………………………………………………………………………………………………………………………………………

8) According to the statistics given by the Insurance Regulatory and Development Authority (IRDA) during December 2013, the average number of policies sold by an agent of LIC was almost 10 times that of his private sector counterpart. LIC’s agents managed their outperformance last year too, when the life insurance business was on a slide. What was the average policy sale figure for an LIC agent as disclosed by the IRDA? – 29 Policies (LIC has an agency force of 11.72 lakh while private companies have 9.49 lakh agents working for them)

…………………………………………………………………………………………………………………………………………………

9) The much-anticipated inflation indexed bonds, linked to consumer prices were made available for sale for a week beginning 23 December 2013. What was the name of these bonds which sought to protect consumer savings from price rise by offering returns over and above inflation at the retail level? – Inflation Indexed National Savings Securities – Cumulative

…………………………………………………………………………………………………………………………………………………

10) The Ministry of Environment and Forests announced on 20 December 2013 that the ecologically-sensitive Western Ghats will remain off-bounds for mining, quarrying, sand mining and other industrial activities. This move comes after a high-level working group recommended that all destructive industrial activities, that include mining and thermal power plants, should be banned in the region. Who headed this group? – K. Kasturirangan, Member (Science), Planning Commission (The group recognised about 37% of the Western Ghats, covering about 60,000 square km, to be ecologically sensitive)

12 Jan, 2014

1) National Stock Exchange (NSE) during December 2013 completed how many years of its establishment? – 20 years (NSE was founded in 1992 and started trading operations in 1993. It was the first in India to start electronic trading and was successful in bringing about a paradigm shift in the way trading and settlements were done. NSE has a market capitalisation of more than US$989 billion and 1,635 companies listed as on July 2013 and is the largest stock exchange in India)

……………………………………………………………………………………………………………………………………………….

2) Who was appointed as the new Chairman of the National Bank for Agriculture and Rural Development (NABARD) during December 2013? – Harsh Kumar Bhanwala(Bhanwala succeeds Prakash Bakshi, who retired as NABARD Chairman in September 2013. Before this appointment Bhanwala was an Executive Director at India Infrastructure Finance Company Ltd (IIFCL), a state-owned infrastructure lender. His term will be for 5 years)

……………………………………………………………………………………………………………………………………………….

3) Who was appointed as the new Finance Secretary of India on 10 December, 2013? –Sumit Bose (Bose takes place of R.S. Gujral, who retired during November 2013. Gujral was also looking after the expenditure department. Sumit Bose is an IAS officer of Madhya Pradesh cadre (1976 batch) and was the senior-most secretary in the Finance Ministry that has two other secretaries- Arvind Mayaram (economic affairs) and Ratan P Watal (expenditure). He is due to retire in March 2014)

……………………………………………………………………………………………………………………………………………….

4) Top 30 loan defaulters of public sector banks (PSBs) account for more than one-third of total gross non-performing assets (NPAs) of state-run lenders. This information was given in the Parliament on 10 December, 2013. According to this information what is the ratio of top 30 NPAs as a percentage of gross NPAs, in respect of public sector banks, as on September 2013? – 35.5% (This figure stands at 38.8% for all banks in India. The gross non-performing assets (GNPA) amount of top 30 accounts of public sector banks (PSBs) stood at Rs. 72,174 crore, while for all banks it was Rs. 91,667 crore at the end of September 2013. In case of nationalised banks, the top 30 defaulters contributed 43.8 per cent to the GNPA with Rs. 55,663 crore. The GNPAs of the SBI Group, comprising SBI and its five associates, were worth Rs. 71,620 crore at the end of first quarter of the current fiscal)

……………………………………………………………………………………………………………………………………………….

5) Which private sector bank during December 2013 joined hands with the National Payments Corporation of India (NPCIL) to introduce eKYC (electronic Know Your Customer) norms in its branches? – HDFC Bank (The eKYC

procedure will enable a consumer to walk in with an Aadhaar number and open an account by getting his fingerprint scanned. HDFC Bank will install biometric readers for scanning fingerprints at most of its branches in a few months. The banks systems will pull all data stored online with the Unique Identification Authority of India (UIAI) including name, address, birth date and photograph)

……………………………………………………………………………………………………………………………………………….

6) The United Forum of Bank Unions (UFBU), in its memorandum given during December 2013 to the Finance Minister, has kept which demand prominently which has huge support of bank employees all over the country? – Working for five-days in a week (Trade unions in the banking sector have raised this demand as part of their bipartite wage negotiations with the Indian Banks’ Association. With alternative channels such as ATMs, Internet and mobile banking in place, the unions feel that the time is ripe for moving to a five-day week. Unions argue that not only Central and State Government ministries/departments but even the Reserve Bank of India follows the five-day work schedule. However, another section of bankers were of the opinion that five-day week was not advisable as it would come in the way of efforts towards financial inclusion)

……………………………………………………………………………………………………………………………………………….

7) Which natural gas pipeline inaugurated by the Prime Minister on 3 December, 2013 is the first one to connect Southern India to the national grid? – Dabhol – Bangaluru Gas Pipeline of GAIL (The Dabhol – Bangaluru gas pipeline is 1,000 km long and has been put-up with an investment of around Rs. 4,500 crore. The pipeline starts at Dabhol in Maharashtra and passes through Belgaum, Dharwad, Gadag, Bellary, Devanagere, Chitradurga, Tumkur, Ramanagaram, Bengaluru Rural and Bengaluru Urban districts)

……………………………………………………………………………………………………………………………………………….

8) More than a year after allowing FDI in multi-brand retail, the government on 17 December 2013 received the first application to open stores under this category. Which company gave this application to set-up multi-brand retail stores in India with an Indian group? – Tesco Plc. (Tesco Plc. is a UK-based retailer and it has sought approval to open retail stores in India with an investment of $110 million in joint venture with Tata Group. The joint-venture Trent Hypermarket, will trade in products under 14 categories and plans to open three to five stores every financial year. The government in September 2012 had allowed 51% FDI in multi-brand retail with certain riders)

……………………………………………………………………………………………………………………………………………….

9) Which public sector bank is the only Indian bank to have a branch in Bangkok (Thailand) and it during December 2013 received the Reserve Bank of India (RBI’s) approval for opening a second branch here? – Indian Overseas Bank (IOB) – IOB will open the second branch before the end of March 2014. IOB had few years back roped in Deloitte to devise a strategy for the bank’s overseas expansion)

……………………………………………………………………………………………………………………………………………….

10) State-run Indian Oil Corp has emerged as the country’s biggest company in terms of annual revenue, followed by Mukesh Ambani-led private sector giant Reliance Industries at the second place, as per an annual list of Fortune 500 companies in India in Fortune magazine’s Indian edition released during December 2013. Among the top ten

companies in this list, the highest number of companies is from which sector? – Energy Sector (There are as many as seven energy companies in the top 10 list. Indian Oil Corp (IOC) was the biggest with annual revenue of Rs 4,75,867 crore, followed by Reliance Industries (RIL) with a full-year revenue of Rs 4,09,883 crore. This is followed by Bharat Petroleum (Rs 2,44,822 crore) at the third place and Hindustan Petroleum (Rs 2,17,771 crore) at fourth. Other entities in the list are State Bank of India (5th rank), Tata Motors (6th), ONGC (7th), Tata Steel (8th), Essar Oil (9th) and Coal India (10th))

22 Dec, 2013

1) The Standing Committee on Finance headed by Yashwant Sinha has recently given what suggestion to the Union Government and Reserve Bank of India (RBI) on the issue of new bank licenses? – It has suggested to desist from giving new bank licences to industrial houses (Banking being a highly leveraged business involving public money and public welfare, it will be more in the fitness of things to keep industry and banking separate, the Standing Committee on Finance has suggested. It urged to ensure that no recurrence of the pre-nationalised situation happens, when the management of private banks deployed their funds to extend undue favour to their own industrial owners without regard to social priorities determined by Government)

……………………………………………………………………………………………………………………………………

2) According to the recently released list of biggest bank defaulters by the All India Bank Employees Association (AIBEA), as much as 25% of the total non-performing assets (NPAs) in public sector banks (excluding SBI) are accounted by 50 corporates. Which is the corporate with largest outstanding in this list? – Kingfisher Airlines (Vijay Mallya promoted Kingfisher Airlines owes Rs. 2,673 crore as per the combined NPA list of PSU banks. It is followed by Winsome Diamond (Rs. 2,660 crore) and Electrotherm India Limited (Rs. 2211 crore). The total NPAs of public sector banks (excluding SBI) stood at Rs. 1,64,461 crore. Top 50 corporate defaulters have defaulted Rs. 40,528 crore of bank loans. According to AIBEA, it has released the name of these defaulters as the RBI and the govt. are not publishing them)

……………………………………………………………………………………………………………………………………

3) Which entity on 3 December, 2013 announced plans to set up a MFIs Credit Information Bureau to enable Microfinance Institutions (MFIs) to secure credit on faster and better terms? – Credit Information Bureau (India) Ltd. – CIBIL (Under this initiative CIBIL is planning to rope in MFIs as members. Currently, CIBIL is operating four bureaus – consumer, retail, mortgage and fraud. Prior to approving individual loans, public sector banks and financial institutions seek CIBIL credit information reports and credit score of an applicant. An individual is given points by the CIBIL TransUnion ranging from 300 to 900 (highest), based on his loan repayment pattern for the last few months. The credit score is updated every month. Individuals with 800 points are the most sought after by banks)

……………………………………………………………………………………………………………………………………

4) Which practice has been made compulsory from 1 December, 2013 with regard to use of debit card at retail outlets? – Mandatory punching of debit card PIN number after swiping (This is intended to make bank debit card transactions more secure. In June 2013, the Reserve Bank of India (RBI) had extended the deadline for

implementation of mandatory PIN punching at Point-of-Sales (PoS) and merchant outlets till 30 November, 2013 following representation of banks. According to the report of a RBI working group early cases of domestic counterfeit and skimming are being observed as far as debit cards are concerned. Card skimming is the illegal copying of information from the magnetic strip of a credit/debit card)

……………………………………………………………………………………………………………………………………

5) Insurance giant Life Insurance Corporation (LIC) recently decided to stop selling 34 policies, including popular policies like Jeevan Anand, Jeevan Madhur and Jeevan Saral during December 2013. What is the main reason for this decision of LIC? – To comply with new regulatory guidelines (These policies are not in conformity with the provisions of new regulations on non-linked insurance products, linked insurance products and health insurance products. The Insurance Regulatory and Development Authority (IRDA) had extended the deadline for implementation of new individual product regulations for the life insurance industry by three months to 31 December 2014. The new guidelines are aimed at making insurance policies more customer-friendly)

……………………………………………………………………………………………………………………………………

6) Which major industrial group of the country on 27 November, 2013 withdrew its application with the Reserve Bank of India (RBI) for a banking licence? – Tata Sons, which is the holding company of the Tata Group (It thus became the second industrial group after Videocon-promoted Value Industries to opt out of the race for banking license that now has 25 entities in the fray. For Tata Sons, the constraining factor was the RBI guideline for new bank licences that required all financial services entities in a group to be necessarily owned by the non-operating financial holding company (NOFHC). To comply, the Tatas would have had to re-organise the existing financial services structure of the Group. The Tata move comes just two months before the final licences for new banks are to be issued by the RBI)

……………………………………………………………………………………………………………………………………

7) Six financial institutions – Germany’s Deutsche Bank, France’s Societe Generale, Britain’s RBS and RP Martin and United States’ JP Morgan and Citigroup, were imposed fines totalling 1.7 billion euros ($2.3 billion) by the European Union on 4 December, 2013. What is the reason for imposition of this hefty penalty? – For manipulating interest-rate benchmarks (These banks were involved in manipulating interest rate derivatives denominated in the euro and the Japanese yen. There had been suspicions about rate-rigging during the 2008 financial crisis, but the scandal reached full force last year when Barclays bank became the first to settle a fine for attempting to falsify the Libor benchmark. Germany’s Deutsche Bank faces the stiffest penalty with a total fine of 725 million euros, followed by France’s Societe Generale with 446 million euros and Britain’s RBS with 391 million euros)

……………………………………………………………………………………………………………………………………

8) What ease in norms for non-banking finance companies (NBFCs) involved in insurance joint-ventures was announced by the RBI on 28 November, 2013? – They have been allowed to hold more than 50% in such companies (As per existing norms, an NBFC could not hold more than 50% of the paid-up capital of an insurance joint-venture)