Current Affairs for BANK, IBPS Exams 16 May 2016

Current Affairs for BANK, IBPS Exams

16 May 2016

:: National ::

IMD says arrival of monsoon to be delayed

The India Meteorological Department (IMD) said that the arrival of the southwest monsoon in Kerala will be delayed by at least a week beyond the normal of June 1.
However, IMD also said while this could lead to reduced rainfall in June, it would not affect the overall quantum of rains across the country.
This widely diverges from a forecast earlier this week by Noida-based forecaster Skymet, that the monsoon would set in over Kerala between May 28 and 31.
June accounts for only 18 to 20 per cent of the monsoon rains but it marks the beginning of the kharif sowing season.
July and August account for about two-thirds of monsoons and are critical for a good harvest. Last year, the monsoon arrived at the Kerala coast on June 5, later than the agency’s predicted date of May 30.
This was the only time, the IMD claims, its monsoon onset model failed to get the date within the model’s error margin since it began issuing such forecasts in 2005.
The monsoon is expected to set in at the Nicobar islands around May 17, and set in substantially over the Andamans by May 20. It’s the timing of its subsequent journey into Kerala that’s in doubt.
“The cooling of the Pacific waters has been better than expected and we expect the La Nina to set in slightly earlier around the second half of monsoon,” IMD said.
The delay in onset over Kerala is because of the El Nino, which, though waning, is still strong, and the waters of the Indian Ocean being warmer than usual for this time of the year.
Generally rain-bearing winds begin to be drawn across the equator by this time of the year.

Payment to Iran still un resolved

With less than a week to go for Prime Minister Narendra Modi’s visit to Teheran, officials are working hard to seal an agreement to repay $6.5 billion owed to Iran over the years when it was under sanctions.
The effort has run into a brick wall over the reluctance of European banks to process the payments, officials in the Oil and External Affairs ministries have told The Hindu .
The repayment agreement is among a slew of announcements India and Iran hope to make during Mr Modi’s first visit to Teheran on May 22-23.
Other announcements include the signing of a trilateral trade agreement, which includes Afghanistan, that has already been finalised, an MoU for the development of Chabahar port, progress on Indian exploration of the ‘Farzad-B’ gas oilfields.
While the other agreements are on track, officials say it is the hunt for the repayment channel to Iran that is keeping them on tenterhooks.]
This is despite several banks including the Danske bank of Denmark, Europaeisch-Iranische Handelsbank (EIH) of Germany, Central Bank of Italy and Halkbank of Turkey having been identified to carry out the transactions, and the RBI has identified corresponding banks in India.
New Delhi has repeatedly said it is keen to pay back Iran the $6.5 billion, most of it for oil transactions.

India test fired indigenous supersonic interceptor missile

In its effort to have a full fledged multi-layer Ballistic Missile Defence system, India successfully test-fired its indigenously developed supersonic interceptor missile, capable of destroying any incoming hostile ballistic missile.
The interceptor was engaged against a target which was a naval version of Prithvi missile launched from a ship anchored inside Bay of Bengal, taking up the trajectory of a hostile ballistic missile.
The target missile was launched at about 11.15 hours and the interceptor, Advanced Air Defence (AAD) missile positioned at Abdul Kalam island (Wheeler Island) getting signals from tracking radars.
“The ‘kill’ effect of the interceptor was ascertained by analysing data from multiple tracking sources.
The interceptor is a 7.5-metre-long single stage solid rocket propelled guided missile equipped with a navigation system, a hi-tech computer and an electro-mechanical activator.
The interceptor missile had its own mobile launcher, secure data link for interception, independent tracking and homing capabilities and sophisticated radars.

Amended FCRA will allow foreign companies to fund NGOs and Political parties

The government has admitted that the amended Foreign Contribution Regulation Act (FCRA), 2010, will not only help foreign-origin companies fund NGOs here but has also cleared the way for them to give “donations to political parties”.
Union Minister of State for Home told that the amendment, cleared by the Lok Sabha in the Budget session, would ensure that “donations made by foreign shareholding companies to entities including parties will be allowed.
The statement assumes significance as such funding from foreign donors will bypass government scrutiny. The Representation of the People Act bars parties from receiving foreign funds.
Both the BJP and the Congress have supported the amendment. They have been accused by the Association of Democratic Reforms (ADR) of illegally receiving foreign funds for political activities from the U.K.-based Vedanta Group from 2004 to 2012.
Mr. Rijiju said different definitions of foreign-origin company existed as per the Companies Act, 2013, the FCRA, 2010 and the Foreign Direct Investment (FDI) policy of the government and they have clarified the foreign source now.
As per the existing provisions any Indian company will fall in the category of foreign source if at any time more than 50 percent of its shareholding is acquired by foreign entity.
Contributions made by the Indian companies with foreign holding up to the prescribed limit as per extant FDI policy will not be treated as foreign contribution.

:: International ::

Chinese ‘Guam killer’ can attack 5500 km away

China’s new ‘Guam killer’ missile, capable of hitting targets some 5,500 km away, is raising new fears of a growing Chinese threat to key American military facilities and stability in the Pacific Rim, the Congress has been warned.
A congressional panel has issued a report warning of the dangers of the DF-26 intermediate-range ballistic missile, during a week in which U.S.-China tensions flared anew with a U.S. Navy destroyer sailing close to a Chinese-claimed island in the disputed South China Sea.
The U.S.-China Economic and Security Review Commission said this week that China’s DF-26 missile — dubbed by analysts the “Guam killer” and unveiled at a high-profile military parade in Beijing last September — allows China to bring unprecedented firepower to bear on the U.S. territory of Guam.
The territory, 4,023 km from Beijing, sits well within the missile’s range, says the report.

Deadly IS attack on Yemen

A suicide bombing claimed by the Islamic State group and a second blast killed 47 people in the Yemeni port of Mukalla where a year of al-Qaeda rule ended last month.
It was the second attack in days claimed by IS in the city of 200,000 people that was recaptured by government forces from the rival jihadists of al-Qaeda with U.S. backing.
The suicide bomber killed at least 41 police recruits on the southwestern outskirts of the city, the capital of Hadramawt province, medics said after earlier giving a toll of 31 dead.
A IS statement posted online claimed the suicide attack, a second rare operation by the jihadist group in an area which is known to be a stronghold of its al-Qaeda rivals.
The attacks included a suicide bombing that targeted the residence of the commander of Hadramawt’s second military region, General Faraj Salmeen, but he escaped the attack unharmed.

:: Business and Economy ::

FM ruled out any depletion of FDI due to imposition of capital gains tax

With a revised Mauritius pact in place to check round-tripping, Finance Minister said investors must pay taxes on money earned in India and ruled out any depletion of FDI due to imposition of capital gains tax on investments through the island nation.
He asserted that India no longer needs any “tax-incentivised route” to attract foreign investments as India economy is now “strong enough” and said there was no “serious apprehension” of investors shifting base to other tax havens
By checking round-tripping of funds, the amendment would help boost domestic consumption.
After toiling for almost a decade to redraw the tax treaty with Mauritius, India will begin imposing capital gains tax on investments in shares through Mauritius from April next onwards.
This has been made possible with amendment to the 34-year-old tax treaty between the two countries.
As markets reacted cautiously to India expanding its crackdown on tax treaties to make it harder for investors to use tax havens as a shelter to avoid levies.
Stating that the Mauritius tax treaty created a “tax-incentivised route” at a time when India was looking at foreign investments to boost economy, he said the economy has become strong enough and “now those who earn must pay taxes“.
The original treaty, signed almost a decade before India opened up its economy in 1991, has helped channelize more than a third of the $278 billion (nearly Rs 19 lakh crore) foreign direct investment India received in the past 15 years.
The imposition of taxes has been “done in a phased manner to avoid shock and I don’t expect any depletion to FDI because of this. Also eventually, markets have to operate on inherent strength of economy.
Stating that the treaty provides for ‘grandfathering’ till March 2017, Jaitley said: “From then till up to two years, 50 per cent of the rate and then from April 2019, 100 per cent of the tax rate.
But this concessional rate of 50 per cent would apply to a Mauritius resident company that can prove that it has a total expenditure of at least Rs 27 lakh in the African island nation and is not a ‘shell’ company with just a post office address.

SC to decide on validity of levy on miners

The Supreme Court would decide on the validity of the government’s retrospective levy of additional royalties on miners to fund local development under the Pradhan Mantri Khanij Kshetra Kalyan Yojana.
The Mines Ministry, in charge of implementing the Mines and Mineral Development and Regulation Act of 2015, had notified the District Mineral Fund rules in September 2015.
It made the additional levy of 10 per cent of royalties for mines auctioned under the new law and 30 per cent of royalties for mines allocated in the past applicable from January 12, 2015, when the Act came into force.
The mining industry had challenged the move in a few high courts and had managed to secure a stay against the retrospective applicability of the rules — for the period between January 2015 and September 2015.
For now, till the apex court takes up the case, industry has been told to pay their DMF liabilities on a prospective basis.
The PM has said retrospective taxation like the one introduced by the UPA to tax Vodafone, is a thing of the past. But these rules were made applicable retrospectively.