General Awareness Magazine For RBI Assistant 2015 Table of Contents News Related to RBI/Finance/Banking PM Visits in recent months News Related to India Socio Economic Caste Census 2011 Appointments - India Housin for all by 2022 Appointments - World AMRUT Sportz Newz Union Budget 2015-16 Global News News Agencies Reports/Lists and Indexes Important World Cup Venues Awards - Global List of Important Days Awards - India Governors of Indian States Days in News Stock Exchanges and Indexes Books & Authors Important Stadiums BRICS Summit List of Largest Producing Countries Obituaries Indian States and Capitals Organisations and HQs Currency and Capitals RBI Assistant 2015 PDF News Related to Finance/RBI/Banking/Industry Policy Repo Rate 7.25% Reverse Repo Rate 6.25% Marginal Standing Facility Rate 8.25% Highlights of RBI’s 2nd Bi-Monthly Monetary Policy Bank Rate 8.25% Short—term lending rate (repo) cut by 0.25 per cent to 7.25 per CRR 4% cent SLR 21.5% Cash Reserve Ratio unchanged at 4 per cent Statutory Liquidity Ratio retained at 21.5 per cent Inflation expected to rise to 6 per cent by January 2016 Growth forecast lowered to 7.6 per cent for 2015-16 from 7.8 per cent projected in April RBI Estimates Current Account Deficit at 1.5% in FY16 Reserve Bank of India (RBI) on 16 July 2015 permitted Cooperative Banks with Core Banking Solution (CBS) to issue ATM cards/ATM-cum-debit cards in tie with a sponsor banks. The decision was taken by the RBI in an attempt to move towards a less-cash economy and with an aim to inculcate the habit of using electronic payment channels among bank customers. Following are the criteria to become a sub-member of NFS: Core Banking Solution (CBS) fully implemented Licence for conducting banking business Introduction from sponsor bank (a bank having ATM network connectivity) Connectivity with National Payment Corporation of India (NPCI) The decision is in addition to the earlier decision of the RBI taken on 16 April 2015 to allow State Cooperative Banks (StCBs) to install offsite/ mobile ATMs as per their need and potential in their area of operation. However, they were allowed to install mobile ATMs only with prior permission of the RBI and subject to satisfying the following criteria: CRAR not being less than 9 per cent No default in maintenance of CRR/SLR during the preceding financial year Net NPA being less than 5 per cent The bank should have a track record of regulatory compliance and no monetary penalty should have been imposed on the bank on account of violation of RBI directives/guidelines during last two financial years The Reserve Bank of India (RBI) on 15 July 2015 constituted a committee to work out a five-year (medium-term) action plan for financial inclusion. The 14-member panel will be headed by RBI executive director Deepak Mohanty. The Committee will work to spread the reach of financial services to unbanked population. The terms of reference of the Committee are as under: 7/22/2015 Downloaded from www.exampundit.in 1 RBI Assistant 2015 PDF To review the existing policy of financial inclusion including supportive payment system and customer protection framework taking into account the recommendations made by various committees set up earlier. To study cross country experiences in financial inclusion to identify key learnings, particularly in the area of technology-based delivery models, that could inform our policies and practices. Reserve Bank of India (RBI) on 16 July 2015 directed banks to ensure that their overall direct lending to farmers should not fall below the average of last three years. The direction was given by RBI against the backdrop of government expressing concern over adverse impact of any reduction in direct credit, given the adverse weather conditions. Further, the RBI warned the banks that direct lending below the target set for priority sector lending will attract usual penalties. The apex bank also said that banks should also continue to maintain efforts to reach the level of 13.5 percent direct lending to beneficiaries who earlier constituted the direct agriculture sector. The RBI has asked banks to consider the due date on which the customer is supposed to pay the minimum amount towards credit card dues while calculating the 90-day period beyond which the customer will be considered an NPA if there is no payment made. The Reserve Bank signed a special currency swap agreement with the Central Bank of Sri Lanka that will allow the latter to draw up to USD 1.1 billion. Under the arrangement, the Sri Lankan bank can draw up to USD 1.1 billion for a maximum period of six months. This special arrangement is in addition to the existing Framework on Currency Swap Arrangement for the SAARC member countries. In March, RBI had signed a Currency Swap Agreement with the Central Bank of Sri Lanka for USD 400 million under the existing SAARC Currency Swap Framework within the overall limit of USD 2 billion. India and World Bank on 16 July 2015 signed Financing Agreement for assistance of 250 million US dollars for Andhra Pradesh Disaster Recovery Project. It is a loan for an implementation period of 5 years and Andhra Pradesh Government will be the implementing agency of project The Competition Commission of India (CCI) on 17 July 2015 imposed penalty of 671.05 crore rupees upon four Public Sector Insurance Companies. These companies and their penalties are National Insurance (162.80 crores rupees), New India Assurance (251.07 crores rupees), Oriental Insurance (100.56 crores rupees) and United India Insurance (156.62 crores rupees). With bilateral trade extremely low, India and Russia have initiated steps to remove hindrances and boost commerce by signing an agreement in the area of customs and moving to liberalise business visas. The two countries have fixed a target of $30 billion to be achieved by 2025. Supported by a healthy monsoon and new investments, the Asian Development Bank (ADB) has retained its India economic growth forecast for 2015-16 at 7.8 percent. This growth forecast is the same level as projected in March this year by ADB in its flagship publication ‘Asian Development Outlook’ (ADO). 7/22/2015 Downloaded from www.exampundit.in 2 RBI Assistant 2015 PDF For 2016-17, the growth forecast remains unchanged at 8.2 percent with expectations of strong services sector growth bolstering overall performance. Mid-tier IT services company Mindtree has acquired two companies based in the US and UK. The Bengaluru-based company, in a regulatory filing to BSE, said that it has signed a definitive agreement to acquire 100 per cent equity interest in Bluefin Solutions Limited ('Bluefin'), a UK-based IT solutions provider specialising in SAP HANA solutions, in an all-cash transaction for £42.3 million (Rs. 419 crore). Government cleared the utilisation of India's capital contribution to SAARC Development Fund (SDF) for promoting cross-border infrastructure projects, trade and growth. The Cabinet approved the proposal to permit utilisation of India's capital contribution to SDF for Economic and Infrastructure Windows, an official statement said. So far, India's capital contribution was only for the Social Window of SDF. The Competition Commission of India (CCI) on 17 July 2015 approved the proposed deal related to a Joint Venture Aegon Religare Life Insurance Company where Religare Enterprises will now exit this joint venture. India’s first air freight station in the private sector has come up at Irungattukottai near Chennai. The first AFS in the country was set up in 2007 inside Central Warehousing Corporation in the city. Set up by the city-based Indev Logistics at a cost of ₹50 crore, the AFS will reduce congestion at the gateway airports and the carrier operators can choose the AFS as a final destination for cargo delivery The Reserve Bank of India (RBI) on 1 June 2015 allowed cross holding in long-term infrastructure bonds. With this, now banks would be able to cross hold these bonds among themselves for financing infrastructure and affordable housing loans, which earlier was not permitted. Maharashtra continued to dominate the mutual fund landscape in the country with an assets base of Rs 1.21 lakh crore at the end of April in equity-oriented schemes, followed by Delhi in the second place. Cult bike maker Harley-Davidson has tied up with fashion portal Myntra to sell its casual merchandise through an exclusive online store. The decision of the Parliament to increase the rate of service tax from 12.36 to 14 percent became operational on 1 June 2015. Now, the new rate subsumes the education cess (2 percent on the service tax amount) which was earlier levied separately. The decision to increase the rate was taken to facilitate smooth transition to the Goods Service Tax (GST) regime which is proposed to be implemented from 1 April 2016. Once implemented, GST will subsume service tax, excise and other indirect taxes. 7/22/2015 Downloaded from www.exampundit.in 3 RBI Assistant 2015 PDF After the Her Ghar loan product, country’s largest bank State Bank of India launched ‘Her Ghar Her Car’ loyalty scheme offering reduced interest on car loans. Under this scheme, ‘Her Ghar’ borrowers can go in for a ‘Her Car’ loan at reduced rates of 10 per cent per annum... Her Ghar Her Car is an addition to products available with SBI wherein concession in rates have been introduced with the objective of reaching out to women in the country and empowering them to take decisions that can change the course of their family and society at large.