Current Affairs for BANK, IBPS Exams 17 October 2016

Current Affairs for BANK, IBPS Exams

17 October 2016

:: National ::

8th BRICS summit ended with the pledge against terrorism

The 8th BRICS summit ended with the adoption of the Goa Declaration which pledged opposition to terrorism, even as India failed to get a consensus on references to Pakistan-based terror groups in the final statement.
However, in a strongly worded statement, Prime Minister Narendra Modi said, “the most serious direct threat to our economic prosperity is terrorism. Tragically, its mother-ship is a country in India’s neighbourhood.”
The text of the declaration did not name any country specifically as the source of cross-border terrorism but officials maintained that India did get the diplomatic edge it wanted from the summit.
Introducing the Goa Declaration, Prime Minister Modi said, “We also agreed that those who nurture, shelter, support and sponsor such forces of violence and terror are as much a threat to us as the terrorists themselves.”

PM Modi made stinging attack on Pakistan

In a stinging attack on Pakistan, Prime Minister Narendra Modi on Sunday said the country “embraced and radiated” the darkness of terrorism which had become its “favourite child” and pitched for decisive action.
He pressed the member-nations of BRICS and BIMSTEC groupings to send a clear message to those who “nurture the philosophy of terror to mend their ways or be isolated in the civilised world.”
His comments came as he pushed for greater collaboration among BRICS countries, as well as members of the BIMSTECgrouping, on issues such as terrorism, economy, trade as well as connectivity.
Among the BIMSTEC leaders present were Bangladesh Prime Minister Sheikh Hasina, Sri Lankan President and Nepalese Prime Minister Pushpa Kamal Dahal, Myanmarese leader Aung San Suu Kyi and Bhutanese Prime Minister TseringTobgay.
Mr. Modi underlined that geographical barriers and borders posed no limitations on those who wished to harm societies.
While slamming Pakistan, Mr. Modi said, “Terrorism has become its favourite child. And, the child in turn has come to define the fundamental character and nature of its parent.”
Appealing to the leaders of BRICS and BIMSTEC, Mr. Modi said everyone present should send a “clear message” to those who nurture the philosophy of terror and seek to de-humanise the mankind, “to mend their ways or be isolated in the civilised world.”
Mr. Modi said that with 1.5 billion people and a combined GDP of $ 2. 5 trillion, the countries of BIMSTEC had shared aspirations for growth, development, commerce and technology.
Similarly, BRICS represents large emerging economies, G-20 member-states and 2 permanent members of the U.N. Security Council.

Standing committee to consult senior jurists for judicial appointments

With no end in sight to the tug of war between the judiciary and the Union government on MoP for judicial appointments, the Standing Committee has scheduled a series of interactions with jurists for their views on a way forward.
A decision to hold consultations with jurists like senior advocate and a former Solicitor-General Mohan Parasaran and Indira Jaisingh was taken at the meeting of the panel under the chairmanship of Anand Sharma here on October 13.
Originally, the interactions were slated for October 23, but now they have been rescheduled for October 25 as some of the senior jurists were not available that day.
A member of the panel, who does not want to be quoted on record,said “Our last session was entirely focused on the huge vacancies to the posts of judges in the High Courts and the Supreme Court.
The Law Secretary who was present at the meeting was asked by the Chairman as well as some of the members on the differences between the Central government and the Chief Justice of India on the MoP.

:: International ::

Bangladesh-China relationship upgraded to strategic partnership

Developments like government-to-government deals worth $24.45 billion and private investment worth $13.6 billion, during Chinese President’s milestone visit to Dhaka upgraded the Bangladesh-China relationship to a ‘strategic partnership’.
However, it has also prompted a debate here on a possible tilt in balance vis a vis Dhaka’s relations with New Delhi, which is all time high under Prime Minister Sheikh Hasina .
Dhaka has categorically said Mr. Xi’s visit would not have any negative impact on its relations with other countries, including India.
The ruling Awami League feels Bangladesh needs both China and India to take forward its aspirations for economic development. The party’s General Secretary Syed Ashraful Islam emphasised on the balance in the country’s foreign policy.
Bangladesh must be careful and maintain a balance among the powerhouses and players in the region so that none feel aggrieved.

:: Business and Economy ::

BRICS agree to setup independent rating agency

The five-nation group BRICS agreed to set up an independent rating agency based on market-oriented principles, saying it would further strengthen the global governance architecture.
“We believe that BRICS institution-building is critical to our shared vision of transforming the global financial architecture to one based on the principles of fairness and equity,” the declaration stated.
To further bridge the gap in the global financial architecture, we agreed to fast-track the setting up of a BRICS Rating Agency,” Prime Minister Narendra Modi said in a statement at the conclusion of the BRICS Summit.
Batting for a rating agency backed by BRICS, New Development Bank president K.V. Kamath had expressed concerns over methodologies of the three global agencies (S&P, Fitch, Moody’s) saying that these constrain growth in emerging nations.
He had said that ratings of multilateral banks like the BRICS-promoted NDB were affected by the parent countries’ ratings, despite having deep capital buffers.

NITI Aayog called for an overhaul of India's steel policy

NITI Aayog member V.K.Saraswat wants India's steel policy framed in 2012 to be overhauled. As old policy is unlikely to meet the target of 300 million tonnes by 2025.
Though India is third largest steel producer, still cheap imports from China, Russia, Korea and Japan has dented domestic industry's fortune.
Indian steel sector grew heavily with a rate over 9 percent during 2003-04 and 2007-08. Since then there has been a fall in steel production to 4.7 percent in 2013-14.
Though India’ steel production cost is about $320-$340 per tonne compared to $400 in China and global average of $390, it is uncompetitive in global market due to other costs like freight costs, high iron ore royalties etc.

Centre rethinks 40% NPS annuity order

To make the National Pension System (NPS) more attractive, the government could do away with a norm mandating retiring employees to buy an annuity with 40 per cent of their accumulated corpus.
Returns on annuity products that deliver a monthly income to retirees are quite low and the compulsory annuitisation puts off potential investors who may prefer to park their retirement savings elsewhere for better returns.
For premature withdrawals from the NPS before the age of 60, eighty per cent of the amount must be invested in an annuity product.
At retirement, 40 per cent of savings must be invested in an annuity, although the PFRDA has allowed retirees to defer the purchase for three years, if the financial markets are in a downturn when they turn 60.
The intent is to ensure people get a monthly income in their sunset years instead of frittering away their entire nest-egg on large expenses at retirement.
Scrapping the annuity requirement altogether would need a change in the PFRDA Act which stipulates an annuity purchase at retirement, but it is possible to reduce the proportion of corpus to be annuitised from the 40 per cent prescribed now.
So the PFRDA has proposed a reduction in the mandatory annuity norm, giving people the option to invest in other products that could offer higher returns, Mr. Contractor said. The Finance Ministry is considering the proposal.
Diluting the annuity prescription would spur greater competition between the 12-year old NPS, which is managing Rs.1.45 lakh crore savings for 3.8 million members, and the EPFO which has Rs.10 lakh crore under its watch.
It may be recalled that the Centre had to backtrack on a Budget proposal this year, intended to bring parity between the two retirement savings alternatives by making 60 per cent of EPF corpus taxable, after widespread furore and an intervention at the highest level.
While he had rolled back the tax on EPF savings, Finance Minister Arun Jaitley made 40 per cent of the NPS corpus tax-free in this Budget. Earlier, the entire NPS corpus was taxable.
Govt had granted an additional annual deduction of Rs.50,000 from gross taxable income for NPS investments over and above the Rs.1.5 lakh deduction permitted for similar investments such as life insurance premia, public provident fund and EPF.
The PFRDA chief said the additional deduction triggered a surge in new NPS accounts, most of which were opened towards the end of the previous financial year.