MONTHLY ISSUE - JULY - 2015 CurrVanik’s ent Affairs Banking | Railway | Insurance | SSC | UPSC | OPSC | PSU A Complete Magazine for all Competitive Exams It isn’t how you start but how you finish that matters Himalayan Tragedy Vanik’s Page 200 Updated MCQs 100 One Liners 40 MCQs on Computers 100 GK for SSC & Railway Vanik’s Knowledge Garden SBI-Prelimenary Practice Set Leading Institute for Banking, Railway & SSC New P u b l i c a t i o n s SBI-PO Practice Paper VANIK'S PAGE Classification of Indian Missiles MAGAZINE FOR THE MONTH OF JULY - 2015 VANIK’S MAGAZINE FOR THE MONTH OF JULY - 2015 B – 61 A & B, Saheed Nagar & Plot-1441, Opp. IOCL Petrol Pump, CRP Square, Bhubaneswar 1 Leading Institute for Banking, Railway & SSC Ph. : (0674) 6556677, 8093556677. Web : www.vanik.org, E-mail : [email protected] Message from Director Vanik Publications EDITOR Mr. Pramod Padhi Dear Students, PUBLISHING MANAGER It is truly said that “What we show, so we reap” One’s present acts relations Smrutiranjan Chhatoi interactions endeavours and scarifies get accumulated as an aggregate of deeds and ADVISORS shape the course of life in future. G. Khatua B. R. Das This is the period where your every action is put to test to make you perfect achiever in future. ASSOCIATE EDITORS Satabdi Sagar Mohanty Samarendra Narayan Sahoo In your search for perfection we come forward to your rescue out experience and your commitment will definitely led to your success. 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CONTENTS Topics Page No Events of the Month 4 International news 9 National news 12 Bilateral 14 Economy and Banking 16 Award and Honour 19 Book and Author 20 Person in news 21 Places in news 23 Sports 25 Science and Technology 27 Environment and Ecology 29 Defence 30 Recent Summit in News 32 Committee and its Function 32 International and National institution 33 Recent visit and visitor 34 Date and Observation 34 State news 35 Recent government devlopement and scheme 37 200 MCQ current affairs 39 40 MCQ of Computer 49 Abbreviation 50 Descriptive English 51 Word of the Month 51 Banking Terminology 52 Miscellaneous G.K. for SSC and Railway 53 Practice Set for Upcoming Exam 57 Previous Year Question 65 Who’s Who? 83 One Liner 85 MAGAZINE FOR THE MONTH OF JULY - 2015 EVENTS OF THE MONTH money for various purposes. The government receives money from investors, who invest in the bond, and pays a fixed periodic interest GOLD MONETIZATION SCHEME known as coupon on it. On maturity, it returns the money to the In the Budget speech, the Finance minister Arun Jaetley announced investors. Similarly, in a gold bond, investors, such as households, the proposals to monetize gold, which means, converting the will be able to lend money to the government by investing in gold bond whose price will be based on the price of a fixed quantity of country’s gold holdings into cash to spur spending and investment, and limit the need to import gold.Two significant schemes were gold. On this, they will periodically receive a coupon (1.5-2% proposed in this respect. The first is the Gold Monetization Scheme, according to estimates). On maturity or sale of the bond, the bond which would enable depositors, such as households and jewelers, holder will receive an amount equal to the value of the underlying to open metal deposits with banks and place their gold holdings in amount of gold as on that date. Therefore, they will get the same them and can also borrow money using these accounts. return as buying gold bars or coins and selling them later, when The other initiative, a new Sovereign Gold Bond scheme which their price increases. would enable investors to trade in gold without having to buy it Advantage of the scheme: The benefit of this scheme is that it physically. In addition, the introduction of a domestically-made will remove the need to import gold for investment purposes. At Indian Gold Coin, bearing an Ashoka Chakra was also announced. present, when people buy gold as an investment, it has to be imported This could reduce the need for importing gold coins.Let’s see how from outside. This leads to an outflow of forex and increases India’s these policies might work and what their intended benefits are: current account deficit – the amount India owes to the world in foreign currency. With the introduction of the bond, the entire 1) Gold deposit scheme: Although the Budget document does transaction will take place in cash, removing the need for buying not talk about these at length, they are expected to work similarly imported gold. to bank accounts. People periodically deposit money in their As per the draft guidelines issued on 19 may, 2015, minimum gold accounts and receive interest from the bank. The bank uses these deposit is proposed at 30 gm and the interest earned on it would be deposits to make loans to others and receives interest in return. The exempt from income tax as well as capital gains tax. difference between the interest paid and received is the bank’s The govt. issues a draft scheme under which a person or entity can income. Similarly, under the scheme, households and jewelers will earn interest by depositing the yellow metal with banks. If gold be able to place their gold holdings in a metal deposit with a bank. mobilized through scheme is allowed to meet CRR / SLR The bank will pay interest for this. It will lend this gold to jewelers requirements, the value of the metal will be considered as deposit who require gold for their daily working and receive interest in for meeting the reserve ratios. return. The difference between the two interests will be the bank’s income. One can withdraw the gold in times of need. What is gold monetization scheme? It is a scheme that facilitates the depositors of gold to earn interest Advantages of the scheme : The scheme has two-pronged on their metal accounts .Once the gold is deposited in metal account, benefits. First, it will reduce the dependence on imported gold. India it will start earning interest on the same. is the world’s 2nd largest consumer of gold and has to import about 97% of its annual gold demand. This is a drain on its forex reserves, How it generally works? and is a key reason why the rupee value falls. On the other hand, When a costumer brings in gold to the counter of specified agency there is 20,000 tons of gold that is unproductively stashed away in or bank , the purity of gold is determined and exact quantity of gold household lockers, according to the Finance Minister. The scheme is credited in the metal account . Costumer may be asked to complete intends to circulate this stashed gold in the economy by pulling it KYC (know your costumer ) process. The deposited gold will be out of domestic safes and lending it to those who need it. This will lent by banks to jewelers at an interest rate little higher than the save the country billions of dollars of gold imports annually. Second, interest paid to customer. stocks of gold jewelry represent enormous personal wealth. However, this wealth is only notional because it doesn’t contribute How is the interest rate calculated? to growth. It can neither be spent nor invested. The gold deposit Both principal and interest to be paid to the depositors of gold, scheme can attract deposits worth Rs 1 lakh crore, according to an will be valued in gold. For example, if a customer deposits 100gm Economic Times report quoting SBI research. This gold will be of gold and gets one percent interest , then on maturity he has a converted into cash in the form of interest. Gold owners can then credit of 101 gm the scheme says. use it for spending and banks for productive lending. Imagine how much growth an extra trillion rupees can generate for the country. What is the tenure? Another media report suggest that this scheme can add 2% to the The tenure of gold deposits is likely to be for a minimum of one Gross Domestic Product (GDP) At of our country year. The minimum quantity of deposits is pegged at 30 gm to encourage even small deposits. The gold can be is any form, bullion 2) Sovereign Gold Bond : The gold bond will work just like a or jwellery regular coupon bearing bond that the government issues to borrow B – 61 A & B, Saheed Nagar & Plot-1441, Opp. IOCL Petrol Pump, CRP Square, Bhubaneswar 4 Leading Institute for Banking, Railway & SSC Ph. : (0674) 6556677, 8093556677. Web : www.vanik.org, E-mail : [email protected] MAGAZINE FOR THE MONTH OF JULY - 2015 How the redemption takes place? 6. Action plan between the National Railway Administration Customer will have the choice to lake cash or gold on redemption, of China and the ministry of railways of India on but the preference has to be stated at the time of deposit.