Hello and welcome to ExamPundit. Here are the Important Current Affairs of 8th May and 9th May, 2016. These are important for the upcoming SBI Clerk 2016 and SBI PO 2016 and UIIC AO 2016.
RBI releases consultation paper on Peer to Peer lending to classify it as NBFC
- The Reserve Bank of India (RBI) on 28 April 2016 released consultation paper on Peer to Peer (P2P) lending to classify it as Non-Banking Financial Company (NBFC). The suggestions or comments on the Paper may be sent to Department of Non-Banking Regulation, RBI on or before 31 May 2016.
- The Consultation paper outlines the pros and cons of regulating the sector and proposes a suitable framework for regulating the activity.
- It includes minimum capital, permitted activity, governance requirements, and fair practices code for customer dealing and data security.
RBI released draft guidelines for licensing of Universal Banks in Private Sector
- The Reserve Bank of India (RBI) on 5 May 2016 released Draft Guidelines for on tap Licensing of Universal Banks in the Private Sector.
- It also sought views and comments on the draft guidelines from banks, non-banking financial institutions, industrial houses, other institutions and the public at large latest by 30 June 2016.
- RBI will issue the final guidelines will after receiving feedback, comments and suggestions on draft guidelines.
Salient features of the draft guidelines:
i. Existing non-banking financial companies (NBFCs) that are controlled by residents and have a successful track record for at least 10 years.
ii. The residents, individuals or professionals who have 10 years of banking and finance experience.
iii. Residents owned entities or groups in the private sector which have a successful track record for at least 10 years.
Fit and Proper criteria: Promoter or promoting entity or promoter group should have a past record of sound financials, credentials, integrity and have a minimum 10 years of successful track record.
i. The requirement of Non-Operative Financial Holding Company (NOFHC) is not mandatory for individual promoters or standalone promoting or converting entities that do not have other group entities.
ii. Individual promoters or promoting entities or converting entities that have other group entities, shall set up the bank only through an NOFHC.
iii. The NOFHC shall be owned by the promoter/promoter group to the extent of not less than 51 per cent of the total paid-up equity capital of the NOFHC.
- Minimum capital requirement: The initial minimum paid-up voting equity capital for a bank shall be 5 billion rupees. Thereafter, the bank shall have a minimum net worth of 5 billion rupees at all times.
- Foreign shareholding in the bank: The foreign shareholding in the bank would be as per the existing foreign direct investment (FDI) policy. The aggregate foreign investment limit is 74 per cent.
Corporate governance prudential and exposure norms:
i. The bank shall comply with the provisions of Banking Regulations Act, 1949 and the existing guidelines on prudential norms as applicable to scheduled commercial banks.
ii. The bank is precluded from having any exposure to its promoters, major shareholders who have shareholding to the extent of 10 per cent or more of paid-up equity shares in the bank.
Business plan for the bank: A realistic and viable business plan should be submitted that can propose the bank’s ability to achieve financial inclusion.
Other conditions: The bank shall get its shares listed on the stock exchanges within six years of the commencement of business by the bank.
100% FDI through Automatic Route permitted in Asset Reconstruction Companies
- The Department of Industrial Policy & Promotion (DIPP) under Union Ministry of Commerce & Industry permitted 100% foreign direct investment (FDI) into asset reconstruction companies (ARCs) through automatic route.
- In this regard the DIPP notified the Press Note 4 (2016 series) on 6 May 2016.
- Person resident outside India can invest in the capital of ARCs registered with Reserve bank of India, up to 100 per cent on the automatic route. Earlier, it was 49 per cent through automatic route and beyond 49 percent through government route.
- It stated that total share holding of an individual foreign institutional investor (FII)/foreign portfolio investment (FPI) shall be below 10 per cent of the total paid-up capital.
Dial 112 for any Emergency throughout India from 1 January 2017
- 112, the single emergency number that will help people to reach immediate services of police, ambulance and fire department will be operational throughout India from 1 January 2017.
- Single emergency number 112 of India will be similar to the '911' all-in-one emergency service in the United States.
Highlights of its Usability
- The service will also be accessible even through those SIMs and landlines whose outgoing call facility has been stopped or temporarily suspended.
- A person in distress will need to call only 112, which will direct the call to concerned departments immediately for help.
- All existing emergency numbers will be phased out within a year of rolling out 112, depending upon the awareness about this new facility.
Asia's first Rice Technology Park to be established in Gangavati, Karnataka
- The Karnataka Government in the first week of May 2016 decided to establish Asia’s first-ever Rice Technology Park at Gangavati.
- Besides, a Maize Technology Park will also be established at Ranebennur in Haveri district.
- The rice park is being established at Navali-Karatagi villages on the outskirts of Gangavati, and the maize park is to be come up in the APMC market yard at Ranebennur.
Key facts related to the establishment of parks
- These parks will be established under public private partnership (PPP).
- The establishment of the Rice Technology Park will help paddy cultivators in the Tungabhadra Command Area in Ballari, Raichur and Koppal districts.
Awards & Honors –
Switzerland honours Yash Chopra with Bronze statue
- Switzerland government on 4 May 2016 honoured the late bollywood film maker Yash Chopra with a special statue.
- The bronze statue of Yash Chopra which weighed about 250 kilos was inaugurated by his wife Pamela Chopra and daughter-in-law Rani Mukerjee.
- This statue was installed at middle of the Interlaken which is inside the Kursaal area near the Congress Centre which is a prime, popular spot for the tourists.
- He was honoured as he shot most of his romantic films in the lush mountains of Switzerland, which opened a legacy of South Asian tourists flocking to that country.
- This is not the first time Yash Chopra has been honoured by the Interlaken government.
- Earlier, he was awarded with the honorary title of Ambassador of Interlaken in 2011.
- And Jungfrau Railways named a train after him, which was an honour shared only with Adolf Guyer who was the founder of railway.
- The five-star Victoria Jungfrau Grand Hotel & Spa in Interlaken also named a suite after him.
India ranks Ninth in Crony-Capitalism Index
- India is ranked at ninth position in crony-capitalism index that was released by the Economist in the first week of May 2016. India has a crony sector wealth accounting for 3.4 percent of the gross domestic product (GDP).
Highlights of the Index
- As per the latest crony-capitalism index the non-crony sector wealth in India amounts to 8.3 per cent of the GDP
- India stood at the same ninth place in the previous 2014 rankings.
- Russia topped the list and followed by Malaysia, the Philippines and Singapore.
- Russia fares worst in the index, wealth from the country's crony sectors amounts to 18 per cent of its GDP.
SpaceX successfully launches Japanese JCSAT-14 Satellite
- SpaceX on 6 May 2016 successfully launched the Japanese communications satellite, JCSAT-14 on Falcon 9 rocket from Cape Canaveral, Florida.
- The satellite was place into its intended preliminary geostationary transfer orbit by SpaceX Falcon 9 rocket which was launched from Cape Canaveral Air Force Station in Florida, US.
- The odds of a successful soft-landing were slim due to the mission requirements for the particular launch.
UN launches Multi-Partner Trust Fund for Zika virus response
- United Nations (UN) on 6 May 2016 announced the establishment of the UN Zika Response Multi-Partner Trust Fund (MPTF) to finance critical unfunded priorities in the response to the Zika outbreak.
- The establishment of the fund was announced by UN Secretary-General Ban Ki-moon.
Objective of the Fund
- The Fund aims to provide a rapid, flexible and accountable platform to support a coordinated response from the UN system and partners.
- It will directly support the Zika Strategic Response Framework, developed by the World Health Organization (WHO) in consultation with UN agencies, partners and international epidemiological experts.
Flying Observatory SOFIA detects Atomic Oxygen in Martian Atmosphere
- Atomic Oxygen was detected in the upper layers of the Martian atmosphere known as Mesosphere. This presence of Atomic Oxygen for the first time since the last observation 40 years ago was detected by an instrument onboard the Stratospheric Observatory for Infrared Astronomy (SOFIA).
- Atomic oxygen affects how other gases escape Mars and therefore has a significant impact on the planet’s atmosphere.
- The research was published in the journal Astronomy and Astrophysics.
Novak Djokovic wins 2016 Mutua Madrid Open
- Number one seed Novac Djokovic on 8 May 2016 defeated Andy Murray 6-2, 3-6, 6-3 to conquer the Mutua Madrid Open title in Madrid, Spain.
- It was Djokovic’s fifth win in the last 6 ATP 1000 competitions. With the win, he also reached a record 29 Masters 1000 titles.
- Mutua Madrid Open title was Djokovic’s second title on the Caja Mágica clay. He claimed the game in two hours and six minutes.
Romanian Simona Halep wins women singles of Madrid Open of tennis
- Romanian tennis player Simona Halep on 7 May 2016 won the women singles title of the Madrid Open. The men’s singles title was won by Novak Djokovic of Serbia.
- She defeated Dominika Cibulkova of Slovakia 6-2, 6-4 in the final played at Madrid, Spain.
- This was the third Madrid title for World No. 6 Halep and her first title of 2016. Overall this was her 12th career title.
Sadiq Khan becomes first Muslim mayor of London
- The British Labour party's Sadiq Khan on 6 May 2016 was elected new Mayor of London. His election as Mayor of London made him the first actively affiliated Muslim to become mayor of a major Western capital.
- Khan emerged victorious in the 2016 mayoral elections after defeating Conservative Member of Parliament (MP) Zac Goldsmith by 1310143 votes to 994614. Khan assumed the office on 9 May 2016.
- Khan succeeds Conservative Party Mayor Boris Johnson.
Books & Authors –
Shashi Kapoor - the Householder, the Star authored by Aseem Chhabra released
- Yesteryear’s Bollywood actor Shashi Kapoor’s biography titled Shashi Kapoor – the Householder, the Star was released on 6 May 2016.
- The book, which attempts to delve into the nature and nurture of Shashi Kapoor, is authored by film journalist Aseem Chhabra.
- Shashi Kapoor - the Householder, the Star is the first biography of the veteran actor.