Current Affairs for BANK, IBPS Exams 09 February 2017

Current Affairs for BANK, IBPS Exams

09 February 2017

:: National ::

University curriculum to be revised in every three years

In order to ensure that students are equipped with skills relevant to the sector that they will specialise in, UGC has directed all universities to ensure that the curriculum is reviewed at least once every three years.
The UGC has said that the decision was taken during a meeting that was chaired by the Prime Minister, with secretaries of education and social development.
UGC stated that the review and the revision of the academic curricula should “focus on the existing and potential demand and supply of skill sets to make University/college students employable”.
This instruction needs to be adopted by individual universities and colleges affiliated to it.
The circular also noted that interdisciplinary programmes offered by the university can be complemented through a “robust” mechanism of revisiting and revising the curricula at regular intervals.
Student organisations have welcomed the move, but point out that there is a need to ensure that teacher training is on a par with this.

Krishna River Management Board order to be implemented

The stalemate in release of water to the standing crop in Prakasam and Guntur districts from the right main canal of Nagarjunasagar which had led to agitations in the command area was resolved.
The Telangana government agreeing to implement the water release order issued by the Krishna River Management Board earlier.
As the meeting was in progress, 5 tmcft water which was ordered for release from January 18 was discharged from Nagarjunasagar project.
The Andhra Pradesh government restrained from raising penal provisions of Andhra Pradesh Reorganisation Act and the consequential punishment for non-implementation of the order as the issue was sorted out.
The meeting also decided to release another six tmcft for Krishna delta from left Nagarjunasagar left canal which had also been ordered earlier by KRMB.
It was decided to work out various methods to assess the usage.

Further relaxations on the curb of money supply

RBI is set to lift completely from March 13 the cash withdrawal limits imposed in the wake of the November 8 demonetisation of high-value currency notes. The RBI said the remonetisation process was well under way.
From February 20, cash withdrawal limits for savings account holders will increase to Rs. 50,000 a week from the existing Rs. 24,000.
This would mean savings account holders can withdraw Rs. 50,000 from automated teller machines in one go, if their banks allow it. Banks typically set daily limits for their customers for withdrawal from ATMs.
The RBI had earlier lifted cash withdrawal limits for current and cash credit accounts. Limits on ATM withdrawals were also changed to reflect the limits on withdrawals from bank counters at the time.
Cash withdrawals had been capped at Rs. 2,000 from ATMs and Rs. 10,000 from banks as part of the initial step to withdraw high-value banknotes.
RBI said it would take time to arrive at a figure of the amount of withdrawn currency notes that were deposited and hinted that the final figures would likely be available only after the deposit window for non-resident Indians was closed in June.

Central govt turned down recommendation for new law for CBI

The Central government has turned down the recommendation of a Parliamentary Committee to come up with a new law for the Central Bureau of Investigation (CBI).
The 85th report of the Department-Related Parliamentary Standing Committee on Personnel, Public Grievances, Law and Justice, chaired by MP Anand Sharma, was tabled in Parliament.
The report strongly recommended that the Department of Personnel and Training (DoPT) revisit the 24th report of the committee on “The Working of the Central Bureau of Investigation.”
“With cases being referred by States and courts to the CBI for investigation, the Committee acknowledges the burden of load bestowed upon it.
However, it is of the concerted view that the CBI turn to the State or other Central Forces to plug the vacancy in the establishment.
It, therefore, desires that the CBI manage its cadre more efficiently and the DoPT should take holistic steps to hasten the part of recruitment in consultation with the UPSC,” said the panel, referring to the 24th report.
In its action-taken reply, the DoPT said the agency, since the submission of the 24th report, had grown into a more dynamic and efficient organisation. It also listed the measures taken to strengthen the CBI.
The committee, in its subsequent remarks, said it was of the view that the powers given to the CBI under the DSPE Act were not adequate enough, considering the changing times. In this context the committee recommended a separate statute for the CBI.

:: India and World ::

As an effort to diversify defence cooperation, India to give training to Indonesia

India has agreed to impart submarine training to Indonesia as part of a bilateral effort to diversify defence cooperation.
India already trains Vietnamese sailors in operating Kilo class submarines and its pilots on Su-30 fighter aircraft, both Russian built platforms India operates in large numbers.
This move also fits into India’s larger engagement with the region as part of its ‘Act East’ policy.
Indonesian defence industry had strengths in some areas and, like in India, is largely dominated by Public Sector Undertakings.
Indonesian President Joko Widodo was in India in December last year and both sides had agreed to “conclude a substantive bilateral Defence Cooperation Agreement” and “explore collaboration between defence industries for joint production of equipment with technology transfer.”

:: Business and Economy ::

RBI kept the rates unchanged

The Monetary Policy Committee decided to keep the key policy rate, the repo rate, unchanged at 6.25% citing uncertainties caused by demonetisation, which it said had ‘discoloured’ an objective assessment of inflation pressures.
RBI, in its last bimonthly review of the current financial year, changed the policy stance – dispensing with its accommodative position and switching to neutral – meaning interest rates could hereafter move in either direction.
“It [Monetary Policy Committee] decided to shift the stance from accommodative to neutral to give us sufficient flexibility to move in either direction,” Dr. Patel said. All six members of the MPC voted to hold interest rates.
The move surprised debt market participants, with most expecting a 25 basis points (bps) rate cut. The yield on the benchmark 10-year government bond shot up by 32 bps to close the day at 6.75%.
“On the inflation front, transient factors including anecdotal evidence on fire sales of perishables have discoloured an objective assessment on inflation pressures,” Dr. Patel said.
Many economists had anticipated a further reduction in the repo rate as retail inflation had slowed well below the RBI’s March end goal of 5%.
The central bank projected retail inflation in the first half of the next financial year would be in the range of 4% to 4.5% and accelerate to a 4.5% to 5% pace in the second half.
The RBI said while favourable base effects and lagged effects of demand compression would possibly mute headline inflation in the first quarter of 2017-18, price gains were expected to pick up momentum.
Especially as growth strengthened and the output gap narrowed. Moreover, base effects would reverse and turn adverse during the third and fourth quarters of the next fiscal, it said.
"However, banks still have room to lower interest rates further. There is still scope for lending rates to come down because our policy rates came down by 175 bps and the weighted average lending rate has come down at most by 85-90 bps,” Dr. Patel said.
Banks had cut their marginal cost of funds based lending rate (MCLR) by 45-90 bps after their cost of funds declined due to higher savings and current account deposits following demonetisation.
The RBI also cited ‘risks’ to its inflation outlook: hardening global crude prices, exchange rate volatility, and fuller effects of house rent allowances under the seventh pay commission.

India to put issues before WTO director general

India will make a presentation to World Trade Organisation (WTO) Director General Roberto Azevedo and India Inc. on New Delhi’s proposal for a global pact to boost services trade.
The proposed Trade Facilitation in Services (TFS) Agreement at the WTO-level aims to ease norms including those relating to movement of foreign skilled workers/professionals across borders for short-term work.
Among the objectives of the proposed pact is ensuring portability of social security contributions, as well as making sure fees or charges for immigration or visas are reasonable, transparent, and non-restrictive in nature.
It also aims to pave the way for a single window mechanism for foreign investment approvals.
Besides, the proposal is to ensure cross-border insurance coverage to boost medical tourism, publication of measures impacting services trade and timely availability of relevant information in all the WTO official languages as well as free flow of data/information for cross-border supply of services.
TFS Agreement will be “meaningful only if it has comprehensive scope and covers measures across all modes of supply (for services delivery in cross-border trade), relating to entry into the market as well as those applied post-entry.”
The proposed TFS pact is also about ‘facilitation’ – that is “making market access ‘effective’ and commercially meaningful and not about ‘new’ (or greater) market access.”
World Bank data shows the growing share of services in the world economy, adding, however, that global trade flows in services remain subject to numerous border and behind-the-border barriers.

The neighbourhood grocery store may well become the first port of call

The neighbourhood grocery store may well become the first port of call for using data services on mobile devices, especially in the hinterland where data connectivity is patchy and laying optic fibre cable not feasible.
TRAI is finalising a recommendation to allow a community model of wi-fi hotspots that users can connect to seamlessly in return for a payment to the hotspot hosts, in a bid to improve India’s poor broadband connectivity levels.
It is also developing a proof–of-concept to enable people to seamlessly latch on to any wi-fi hotspot they come across, without a one-time password or credit card payment hassles.
Calling data the new currency, the TRAI chief said that India needed to do a lot of work on improving data connectivity as it fares even worse than countries such as Sri Lanka, Bhutan and Vietnam on fixed line broadband infrastructure.

Cost of making digital payment is an hinderance

The surge in digital payments in the country, driven largely by short-term incentives, will become sustainable if the costs of making such payments are addressed.
Digital financial transactions are not sustainable unless you address the issues of cost, convenience and confidence.
There is no relationship between the Merchant discount rate (MDR) levied on transactions done through credit and debit cards and the ‘work done’ to justify them.
Drawing a parallel with the telecom sector, the regulator drew attention to ‘the work done principle’ used to determine how much one operator pays another as termination charges.
While people are getting more comfortable with digital payments, the TRAI chief said it is important to build confidence in the systems and ensure that all relevant software is tested for cyber-security and other security risks.
The regulator has reduced the charges of USSD (Unstructured Supplementary Service Data)-based payments made on mobile phones.