Current Affairs for BANK, IBPS Exams 30 May 2017

::National::

Norrth-East likely to face cyclonic storm ‘Mora’

The cyclonic storm ‘Mora’ in the Bay of Bengal is expected to make a landfall near Chittagong.
It is likely to cause heavy to very heavy rainfall in Assam and Meghalaya, besides scattered to very heavy rainfall in Tripura, Mizoram, Manipur, Nagaland and Arunachal Pradesh.
In West Bengal, the cyclone will be limited to gusty winds reaching up to 65 km per hour in the coastal districts.
According to the Indian Meteorological Department, the storm is currently located about 610 km south-southeast of Kolkata and 500 km south-southwest of Chittangong.
The system is likely to intensify into a severe cyclonic storm during the next 12 hours. It is very likely to move north-eastwards and cross the Bangladesh coast between longitude 91.0 degrees E and 92.0 degrees E near Chittagong around May 30 forenoon.
The cyclone will cause gale winds with speeds up to 70-80 kmph in Mizoram and Tripura. According to IMD, it will also result in “squally winds” reaching up to 65 km per hour in South Assam, Meghalaya and Manipur.
Four districts — Balasore, Bhadrak, Mayurbhanj and Jajpur — are expected to receive rainfall.

Various agreements to be discussed between India and Germany

A day after warning that Europe can no longer “depend” on its Western partners, the U.S. and the U.K., German Chancellor Angela Merkel met Prime Minister Narendra Modi shortly after he landed in Berlin.
Ms. Merkel’s comments are likely to set the atmosphere for her meetings this week with Mr. Modi, followed by Chinese Premier Li Keqiang, who will visit Germany on May 31.
Mr. Modi and Ms. Merkel, will address a press conference after the announcement of expected agreements on investment, technology, counter-terror, clean energy and water partnerships.
Germany will host the next G-20 summit in Hamburg in July, and Mr. Modi is expected to discuss Chancellor Merkel’s agenda at the multilateral forum.
Germany is expected to raise issues over trade with India after their bilateral treaty lapsed this year and push for the resumption of the India-EU Free Trade Agreement talks.

Centre will not bring down provident fund savings from 12% to 10%

The Central government will not bring back its proposal to decrease rate of deduction from salary towards PF savings from 12% to 10% as even employers were against such a move.
The Employees’ Provident Fund Organisation (EPFO)’s Central Board of Trustees (CBT), chaired by Mr. Dattatreya, had discussed a proposal to decrease the rate of contribution towards provident fund savings.
However, the employers, employees and State government officials had opposed the proposed move.
At present, 24% of a formal sector worker’s salary is deducted with 12% counted as employer’s share and 12% as employee’s contribution.

Scientists have used silkworms to heal damaged eardrum

In a first, scientists have used silkworms to create a tiny silk implant that can enable a person’s damaged eardrum to heal and help restore their hearing.
Chronic Middle Ear Disease and the ensuing perforated eardrums—commonly known as “burst eardrums”—impact millions around the world, causing hearing loss and complications, including infections, which take the lives of nearly 30,000 people every year.
The infection can be difficult to contain resulting in damage to the eardrum and mastoid bone with hearing loss and pain occurring within the ear.
Scientists are now closer to restoring hearing to patients with painful damaged eardrums by combining science and silkworms to create a tiny device known as ClearDrum which is similar in appearance and size to a contact lens.
The technique is the result of exhaustive design, manufacturing, testing and analysis, researchers said.
Tested over numerous years, the implant shows the ability to perform even better than a person’s original eardrum. The reduced complexity and time within surgery provides an even greater advantage.

::International::

China to begin a realignment of ties with Tokyo

China’s State Councillor Yang Jiechi arrived in Japan for talks that are likely to begin a realignment of ties in tune with Tokyo’s fresh bid to diversify relations with Asia.
Japan's National Security Council chief Shotaro Yachi hosted the Chinese official. Mr. Yang’s post is equivalent to that of the deputy Prime Minister and he outranks the Foreign Minister.
Mr. Yang’s arrival in Tokyo follows Toshihiro Nikai’s visit to China for the recently concluded Belt and Road Forum (BRF). Mr. Nikai is a top official of Japan’s ruling Liberal Development Party (LDP).
The Kyodo news agency had earlier reported, quoting an official, that Mr. Nikai delivered a letter from Japanese Prime Minister Shinzo Abe to Chinese President Xi Jinping.

::Business and Economy::

GST rate on inputs for solar components has been cut to 5%

The Goods and Service Tax (GST) rate on inputs for solar components has been cut to 5% from the 18% set by the GST Council in its May 18 meeting.
“All solar equipments and its parts would attract 5% GST only,” Mr. Adhia tweeted. This should put to rest concern in the industry, as the 18% rate was likely to have had a significant impact on solar energy tariffs.

SEBI plans to further tighten norms for issuance of ODIs and PNs

SEBI plans to tighten norms for issuance of offshore derivative instruments (ODIs) and participatory notes (PNs) as part of its overall effort to reduce the exposure investors take via such instruments in the Indian equity market.
Capital market regulator has proposed levying a regulatory fee of $1,000 on every foreign portfolio investor (FPI) that issues ODIs or PNs. SEBI-registered FPIs will have to pay this fee once every three years for each of their ODI subscribers.
Typically, the ODI or PN route is used by foreign entities who want to take an exposure to Indian equity but without getting registered with SEBI.
So, SEBI-registered FPIs buy shares on behalf of such entities and then transfer the securities to the actual beneficiaries.
The regulator has also proposed to prohibit ODIs from being issued against derivatives for speculative purposes. Currently, ODIs are issued against derivatives along with equity and debt.
SEBI has given time until December 31, 2020, to wind up ODIs issued against derivatives, which are not for hedging purpose.
It will be incumbent on ODI issuing FPI to ensure that ODI is issued against those derivatives which are purely for hedging purpose and not for naked speculation, said the SEBI paper.

World Bank says social impact of demonetisation may have been greater

The World Bank has said the social impact of demonetisation may have been greater as the informal economy was likely to have been hit especially hard.
However, the bank said the impact of demonetisation on the informal economy was difficult to measure and greater data availability, especially on labour markets, is needed to better gauge the social impact of such policies in the future.
Bank said there were “statistical issues that mask some of the impact of demonetisation on measured economic growth in Q3 (third quarter of 2016-2017).”
The government had on November 8, 2016 announced that existing Rs. 500 and Rs. 1000 banknotes, corresponding to 86 % of India’s currency in circulation by value, had been “demonetised” – that is, ceased to be legal tender.
Noting that demonetisation caused an immediate cash crunch and that activity in cash-reliant sectors was affected, the bank said India’s GDP growth slowed to 7% year-on-year during the third quarter of 2016-2017 from 7.3 % in the first quarter.
As a result, a modest slowdown is expected in the GDP growth in 2016-2017 to 6.8 %. According to the update, growth is expected to recover in 2017-2018 to 7.2 % and is projected to gradually increase to 7.7 % in 2019-2020.
Though the informal economy may account for only 40 % of (India’s) GDP, it employs 90 % of workers, and the disproportionate impact of demonetisation on the informal sector suggests it would have affected those workers the most.