Current Affairs for BANK, IBPS Exams 03 February 2017

Current Affairs for BANK, IBPS Exams

03 February 2017

:: National ::

H-1B visa reforms could be blessing for Indians

Are the fears of Indian students over the proposed H-1B legislation unfounded and unrealistic? Will it be a blessing for the aspirational Indian techies and students if at all the bill takes the final shape?
Closer look at the bill reflects that it may turn out to be beneficial to Indians as it seeks to remove several numerical quotas per country in issuance of Green Cards and also wants to make Masters Degree mandatory for H-1B visas.
As Indians are the second highest foreign students on US campuses the proposals may definitely appeal to them.
The biggest scare among Indians is the suggestion of a minimum salary of $ 1,30,000 for computer and mathematical professionals employed in H-1B dependent employers.
The H-1B dependent employer is a company with 15% or more of its employees on H-1B visa. Moreover, H-1B holders who have already applied for Green Cards are not included in this.
In the present circumstances Green Cards for Indians are delayed due to quota system per country as citizens of any country cannot get more than 7% of the available green cards in that particular year.
Indians being in the top two countries of immigration seekers can feel elated as the bill proposes to abolish the country quota.
The bill also argues for transparency to protect H-1B holders from blackmailing by the employers and also from liquidation damages.
Job seekers are exploited by the consulting companies forcing them to pay damages if they move to a better opportunity. The proposed bill suggests more protection from such elements.
The suggestion of H-1B visa allocation on market needs rather than the lottery system is likely to enhance the chances of employment for students passing out from good schools with good academic track record.
The present system doesn’t differentiate between students from good institutions or those working in good companies. Those from mediocre colleges also get luckier due to lottery system.
Passionate students who prefer startups over big companies can also heave a sigh of relief as the Zoe Lofgren proposal reserves 20% of H-1B visas for startups with less than 50 employees.
All said and done, companies, consultants and education advisers say the bill is being interpreted in several ways and it will take sometime before the intentions are clear.

U.S.-based NGO Compassion International to shut India's operations

After it was put on the Government’s “prior permission” list for donations, U.S.-based NGO Compassion International (CI), the largest international donor in India, says it will shut down India operations.
The Christian charity has been at the forefront of a clash between the Modi government and the Obama administration.
The Trump administration’s Secretary of State Rex Tillerson said in his Senate confirmation hearings that he would “look into the issue.”
CI asked for strictures to be removed on the organisation that has operated in India for over 30 years, bringing in approximately Rs. 292 crore per year and funds 344 NGOs here.
The ‘adverse’ reports of two NGOs funded by CI — Chennai-based Caruna Bal Vikas Trust and Compassion East India — were instrumental in putting the foreign donor on the Home Ministry’s watch list.
Indian side had made it clear that CI, which had been accused of funding NGOs unregistered for religious activity, would get no exemption from the FCRA ruling for ‘prior permissions'.
Among other regulatory issues, CI’s own mission statement on its website, which says its aim is for “children in poverty to become responsible and fulfilled Christian adults” had raised a red flag with the government.

All airlines will soon have to compulsorily submit passenger records

All airlines flying to and from India will soon have to compulsorily submit passenger records to the government a few days in advance of every flight departure or arrival, according to proposed in the Finance Bill of 2017.
Airlines will be fined Rs. 50,000 for not submitting the information on time.
As proposals make it “obligatory” for airlines to give “passenger and crew arrival manifest” and “passenger name record (PNR) information” to the customs authority before arrival or departure of the flight to, or from India.
The Central Board of Excise and Customs would be authorised to decide the kind of passenger information that needs to be submitted by the airlines.
At present, airlines are required to submit basic details of passengers such as their name, date of birth, nationality, among other things to customs authority.
The final passenger information has to be submitted 15 minutes before the flight takes off.
India will join a select international league of 15 countries such as the US, the UK, Australia, Brazil, Canada, France, Japan, the United Arab Emirates, which ask airlines to submit PNR details of passengers to government authorities.
This is also a subject of a new European Union Regulation and most EU states are planning to introduce PNR requirements.
Even Indian airlines are required to submit the PNR data of passengers to such countries typically three days before the flight, up until the day of travel.
Global airline body International Air Transport Association (IATA) has asked the government to hold consultations with the airlines and follow United Nations’ International Civil Aviation Organisation Standards and Guidelines on PNR data.

Telangana govt is redesigning projects related to irrigation

Continuing with its penchant for redesigning projects, the Telangana Government has decided to redesign several irrigation projects and increase the capacity of some while also planning new reservoirs.
Storage capacity of Mallannasagar, Konda Pochammasagar, Gandhamalla and Baswapur reservoirs scheme will be enhanced. The Cabinet also approved a loan of Rs. 7,860 crore from Andhra Bank for the Kaleshwaram project.
The Ministers said that Devadula project capacity will also be enhanced to 60 TMCs from the original 38 TMCs and Devadula Phase-III works would be taken up with Rs. 1100 crore.
Following the completion of Bhakta Ramdas Lift Irrigation Scheme much ahead of schedule, the Minister said, it was decided to identify lift irrigation schemes, which can be completed expeditiously.

:: International ::

US says Iran is voilating UN resolution by conducting missile test

The U.S. said it was “putting Iran on notice” for conducting a ballistic missile test that it described as a violation of a UN resolution. Blaming Iran for a range of other “destabilising activities” in the region.
Trump administration would put its entire weight behind Saudi Arabia and the UAE, while upending the breakthrough with Iran, a key foreign policy achievement of the previous Obama administration.
“Iran has been formally PUT ON NOTICE for firing a ballistic missile. Should have been thankful for the terrible deal the U.S. made with them!” tweeted President Donald Trump.
Pursuing a collision course with Iran will have a spiralling effect on the U.S.’s relations or plans with several other countries, such as Mr. Trump’s attempt to reset ties with Russia and to arrive at some settlement for the crisis in Syria.
Significantly for India, a renewed conflict with Iran will pre-empt the possibility of a fresh U.S. strategy in Afghanistan that is less dependent on Pakistan.
While Mr. Trump appears eager to overturn Mr. Obama’s Iran rapprochement, he has abandoned his own criticism of the Gulf states during campaign and embraced Saudi Arabia, particularly its bombing of Yemen — which is a continuation of the Obama policy.
Israel and Saudi Arabia have been critical of the nuclear deal with Iran, and the U.S. hostility towards Iran is renewed days ahead of Israel Prime Minister Benjamin Netanyahu’s visit to Washington on February 15.
Meanwhile, Iran termed Mr. Trump’s warning “provocative”. Claims made by the U.S. are“baseless, repetitive and provocative”, Iranian Foreign Ministry spokesman Bahram Ghasemi said, quoted by state news agency IRNA.

UK comes out with white paper for Brexit

The British government has published a white paper setting out the 12 principles that will govern its negotiations with the EU as it prepares to leave the union.
The paper was published the day after MPs voted by a large majority to triggering Brexit talks. The legislation will continue to progress through the House of Commons and the Lords.
The 75-page document elaborates on 12 principles that Ms. May pointed out in her January speech, including providing “certainty and clarity” by pledging a white paper that will convert the body of EU law into domestic law.
The paper also outlines plans to forge “ambitious free trade relationships across the world”, including with India, with discussions had already begun. “
It also covers issues such as the transitional arrangements — and a phased process of implementation — for exiting the union.
It reiterates plans to leave the EU customs union and single market, and reach new agreements that would ensure as “free and frictionless” trade in goods as possible.
The Labour’s position, which has been to support the legislation but push for reforms to ensure single market access and protections for workers, at later stages of the bill, has drawn criticism from across the parties.
The legislation will now pass to the committee stage where amendments will be considered and then voted on. The bill will also have to make its way through the House of Lords, where it is expected to face considerable opposition.
Still, the development is a victory for the government and Leave campaigners, eager to instil certainty into the Brexit process and to ease a jittery market, and global audience.

:: Business and Economy ::

Budget makes a paradigm shift in many ways

The Budget presented marks a paradigm shift in multiple ways. For one, it seeks to reconcile the consequences of international headwinds with domestic economic compulsions.
The international headwinds of rising protectionism, reinventing globalisation and interest rate behaviour by leading central bankers necessitate adherence to continued macroeconomic stability.
Mitigating the consequences of demonetisation particularly employment in the informal sector and lifting sagging investors’ sentiment would, inter alia , need fresh stimulus.
Stimulus both in terms of regulatory framework, ease of doing business and enhanced public outlay. Seeking synergy between agriculture and the corporate sector is an important initiative.
A sharp decline in corporate rate taxes for small and medium industries, which covers 97% of all corporates, would enhance their profitability and trigger investment green shoots.
This would be supported by enhanced agricultural credit, crop insurance, rural skill development leading to significant rise in rural demand.
At any rate, markets have applauded the budget package in no uncertain way. Perhaps after a long time sentiments have improved so decisively after the budget speech.
What does this imply? First and foremost, it is a thumbs up for adherence to the path of macroeconomic stability. This is also a coherent response to some debilitating features of adverse exogenous circumstances.
The centrepiece of the macro stability is adherence to the path of fiscal consolidation. However, there is a paradigm shift. Debt and not fiscal deficit, is being recognised as the principal stabilisation anchor.
Indeed, this was the quest during the debate in the constituent assembly to place fetters on executive discretion and borrowing.
In the new fiscal framework it is recognized that India in relation to other emerging markets is among the most debt ridden nations in the world, with a debt to GDP of 70%.
The Finance Minister mentioned the FRBM Committee’s recommendation on optimum debt to GDP ratio for India of 60%, consisting of 40% for Central Government and 20% for State Governments.
The fiscal deficit is only an enabling instrument for achieving this optimal debt GDP target. The Finance Minister has not resorted to the provision of ‘escape clause’ suggested by the Committee which has an upper ceiling of 0.5% of GDP in any fiscal year.
Markets have perceived this as government’s decisive commitment towards macroeconomic stabilization. This has spurred investor sentiment, found favour with rating agencies and augurs well for congruence of monetary and fiscal policy.
There are other initiatives too like, encouraging labour intensive industries, going beyond leather and textiles packages, by taking a fresh look at the regulatory framework for labour and to harmonize their conflicting regulations.
Similarly, public private partnership was a breeding ground for crony capitalism.
The recommendations of the Vijay Kelkar committee on a new act for dispute resolution as well as an ombudsman is sought to be implemented through an amendment to the Arbitration and Conciliation Act, 1997. This can rekindle innovative financing and public private partnership.

The government plans to divest Rs. 11,000 crore worth of stake in PSUs

The government plans to divest Rs. 11,000 crore worth of stake in PSU general insurance companies to meet the steep disinvestment target of Rs. 72,500 crore next fiscal.
Of the total target, Rs. 46,500 crore will be mobilised through minority stake sale and Rs. 15,000 crore from strategic disinvestment.
The goal of Rs. 72,500 crore is higher than Rs. 45,500 crore the government has estimated to raise in the current fiscal. A sum of Rs. 11,000 crore is budgeted from the listing exercise.

RBI asks people to remain vigilant while using virtual currecny

The Reserve Bank of India (RBI) has cautioned the users, holders and traders of virtual currencies (VCs), including Bitcoins, about the potential financial, legal and security risks.
“RBI advises that it has not given any licence/authorisation to any entity / company to operate such schemes or deal with Bitcoin or any virtual currency.
As such, any user, holder, investor, trader, etc. dealing with virtual currencies will be doing so at their own risk,”it said.