Current Affairs For Bank, IBPS Exams - 23 May, 2015

Current Affairs for BANK, IBPS Exams

23 May 2015

Bank of India and MasterCard launches new product

State-run Bank of India (BoI) and MasterCard launched new products in a bid to enhance the payment experience for customers with BoI Business Debit MasterCard, Platinum Credit MasterCard and International Travel MasterCard.
The Bank of India business debit MasterCard will help businesses better manage expenses and move beyond cheques and petty cash. Similarly, the Bank of India platinum credit MasterCard could be used for everyday purchases to help consumers monitor and control expenses. Besides that traveling is now made even more safe, secure and convenience through the launch of Bank of India international travel card.
MasterCard rewards will be made available as a feature on Bank of India’s newly launched MasterCard card programs with an aim to drive cardholder spend and help the bank acquire, retain and grow their best customers.
The MasterCard rewards program is a merchant-funded loyalty program which will allow Bank of India's MasterCard Platinum card cardholders to earn up to 5 per cent of their spends at participating retail and e-commerce merchant establishments as MasterCard rewards.

RBI's FX reserves at all-time high of $353 bn

The Reserve Bank of India (RBI)’s foreign exchange reserves are at an all-time high of $353.88 billion for the week ended May 15 recording a week-on-week growth of $1.75 billion. Meanwhile, the rupee moved up by another 12 paise to close at 63.52 a dollar on sustained selling of the American currency by banks and exporters.
At the interbank foreign exchange market, it commenced strong at 63.58 a dollar from the previous close of 63.64, but later fell back to a low of 63.63 before concluding at 63.52. Foreign currency assets, a key component, rose by $ 1.71 billion to $ 329.12 billion. During the week gold reserves remained unchanged at $ 19.34 billion.
For the week under review, the Special Drawing Rights (SDRs) rose by $ 27.8 million to $ 4.09 billion, while India's reserve position with the International Monetary Fund (IMF) was up $ 9.1 million to $ 1.33 billion.

CCI orders probe against Ericsson

Fair trade regulator CCI ordered a detailed probe against Swedish telecom giant Ericsson, after it ‘prima facie’ found the company in violation of the competition norms.
The order follows complaints that the practices adopted by Ericsson with regard to royalty rates were discriminatory as well as contrary to FRAND ((fair, reasonable, and non-discriminatory) terms.
The royalty rate being charged by Ericsson has no linkage to the functionality of the patented product rather it has linkage to the final price of the manufactured product in which the patent is being used.
Ericsson seems to be acting contrary to the FRAND terms by imposing royalties linked with the cost of manufacturing product. Charging of two different licence fees per phone for use of the same technology, prima facie, appears to be discriminatory.

SC grants constitutional validity to National Company Law Tribunal

The Supreme Court has upheld the constitutional validity of the National Company Law Tribunal, clearing the way for a significant reform in the framework for resolving corporate insolvency.
The National Company Law Tribunal (NCLT) will replace the Company Law Board and the Board for Industrial and Financial Reconstruction, and be an overarching body for resolving insolvencies. It will be the main component of the proposed bankruptcy code as well.
The apex court's nod for the proposed quasi-judicial body, which came with certain riders, could help significantly improve India's ranking in the World Bank's ease of doing business as it will speed up rehabilitation and winding up of sick companies, according to the department of industrial policy and promotion (DIPP).
The Supreme Court has asked the government to make certain amendments in the Companies Act 2013 related to selection and eligibility criteria for National Company Law Tribunal (NCLT) members to operationalise it.
As per the judgement, only those officers who have held the post of additional secretary or a higher rank will be eligible for appointment to the NCLT benches. The Companies Act had allowed officers at the level of joint secretary or higher to be appointed to such benches.
Currently, for company-related issues, there are four different bodies — Company Law Board (CLB), Official Liquidator (OL), Board for Industrial & Financial Reconstruction (BIFR), and the Appellate Authority for Industrial and Financial Reconstruction (AAIFR). NCLT will subsume all these bodies.
With the Supreme Court's approval for NCLT, the government will also be able to bring in the proposed bankruptcy code which will have NCLT as its main component.
The issue of formation of NCLT was pending in the Supreme Court for a long time. The Madras Bar Council had challenged the provisions relating to the appointment process, eligibility and powers of NCLT members in Companies Act 2013, arguing that the norms violated an apex court ruling of 2010 on formation of body.
In the World Bank's Doing Business Report of 2015, India is ranked 137th out of 189 countries on resolving insolvency parameter, which evaluates the legal framework for rehabilitation and winding up of companies, along with the time taken and percentage of estate recovered during the process.

Arcelor and SAIL sign a JV to set up steel manufacturing facility in India

The world’s leading steel maker, Arcelor Mittal, has signed an agreement with Steel Authority of India Ltd (SAIL) to set up an automotive steel manufacturing facility in India, under a joint venture (JV). This would be the first greenfield investment by the LN Mittal group in India’s steel sector, after years of trying to get a foothold in the country.
The deal was signed in London, by Arcelor Mittal Chairman and Chief Executive Officer Lakshmi Mittal and SAIL Chairman C S Verma, in the presence of Steel Secretary Rakesh Singh and ArcelorMittal Europe Chief Financial Officer and chief executive, Aditya Mittal.
India is estimated to become the world’s fourth-largest automobile manufacturing country by 2020, growing from the current 3.5 million units to about seven million units. Aranha said considering 650-750 kg of steel was required to produce a unit, the total market size was huge.
Besides, with India considering introducing crash standards for vehicles, the demand for new technology would increase, he added. While reducing India’s reliance on imports, Singh hoped increasing the availability of indigenously-produced automotive steel would provide a sustainable competitive advantage to the Indian steel and automotive sectors.