Current Affairs for BANK, IBPS Exams - 6 November 2017

::NATIONAL::

GST rates on few goods to be lowered

• The Goods and Services Tax Council may consider lowering tax rates on goods such as handmade furniture, plastic products and daily-use items like shampoo, and simplify return filing rules.
• The Council, headed by Finance Minister Arun Jaitley, will meet on November 10 to consider lowering the 28% rate on certain common-use items, officials said.
• In further relief to small and medium enterprises, the panel is likely to rationalise the tax rate in sectors where the total incidence of taxation has gone up because the goods were earlier either exempt from excise or attracted lower VAT rates in the previous indirect tax regime.
• In further relief to small and medium enterprises, the panel is likely to rationalise the tax rate in sectors where the total incidence of taxation has gone up because the goods were earlier either exempt from excise or attracted lower VAT rates in the previous indirect tax regime.
• “A rationalisation of items in the 28% tax bracket is expected. Most of the daily use items could be lowered to 18%. Also tax rate on items like furniture, electric switches, plastic pipes could be reconsidered,” an official said.
• All types of furniture attract a 28% under GST. Wooden furniture is handmade by unorganised sector artisans and is mostly used by middle class families.
• There have been demands for lowering tax incidence on them. Also, some items of plastic attract 18% GST but goods like shower baths, sinks, wash basins, bidets, lavatory pans, seats and covers, flushing cisterns and similar sanitary ware of plastics attract 28% levy.
• The plastic manufacturers in their representation to the revenue department had said that 80% of the industry is in MSME category.
• Besides, the GST rate on weighing machines, compressors may also be rationalised to 18% from 28 %.
• With regard to compressors, the total pre-GST incidence was 17.5% (12.5% excise duty and 5% VAT), they said stressing on the need to rationalise the tax incidence.

INSV Tarini on second voyage

• Indian Navy Sailing Vessel Tarini set sail from Fremantle, Australia, on the second leg of its global circumnavigation expedition with an all-woman crew of six.
• The vessel had reached Fremantle on October 23 after completion of the first leg of its maiden voyage and is now headed to Lyttelton, New Zealand. The crew is being led by Lieutenant Commander Vartika Joshi.
• “The crew had several engagements during its stay in Fremantle, including call-on meetings with Governor of Western Australia Kerry Sanderson AC and Deputy Mayor of City of Fremantle Cr Ingrid Waltham,” the Navy said in a statement.
• The crew interacted with a cross section of policy makers, political leaders, parliamentarians and military officers. “More than 200 students attended a presentation and interaction session with the crew at Perth Modern School on October 31, 2017,” it added.
• The voyage titled Navika Sagar Parikrama began from Goa in September and is to be completed in March. The distance will be covered in five legs, with stopovers at four ports — Fremantle (Australia), Lyttelton (New Zealand), Port Stanley (Falklands) and Cape Town (South Africa). The 55-foot sailing vessel, built indigenously, was inducted in the Navy early this year.

President Kovind called for reduction of crop wastage

• President Ram Nath Kovind called for a time-bound plan to reduce, if not eliminate, crop wastage in India.
• Terming the crop wastage in the country “unacceptably high,” the President said, “... some of the numbers [on crop wastage] are truly startling.”
• Speaking at the concluding function of the World Food India (WFI) 2017, Mr. Kovind said, “... close to 16% of India’s guava crop is wasted, as are 10% of our mango and apple crops... the deliberations at this conference will take us closer to preventing such regrettable wastage.”
• Delegates from over 60 countries, including CEOs of 60 global companies, attended the WFI event, which, according to Food Processing Industries Minister Harsimrat Kaur, saw 50 MoUs worth $11.4 billion being signed.
• Mr. Kovind called the event “the Kumbh Mela of Indian food,” as it “helped showcase the vast and near limitless opportunities in the food industry and in food processing in India.”
• India’s food industry could be a huge employer, especially to its large youth population and women , the President said, adding that “in our rural areas, there is great potential for women to emerge as micro-entrepreneurs.”
• Congratulating the winners of Start-up Awards and Hackathon Awards at the function, Mr. Kovind said the winners should go on to shape India’s food processing sector and improve quality and safety standards.
• “... one of the start-ups selected has adapted Raman Spectroscopy, the discovery of India’s very own Nobel Prize winning scientist Dr. C.V. Raman, into a low-cost hand-held device that can instantly detect food adulteration. This technology can save billions in food fraud,” he noted.

GI tag for Banaganapalle mangoes and Tulainpanji rice

• The famous Banaganapalle mangoes of Andhra Pradesh and Tulaipanji rice of West Bengal are among the seven commodities that have been granted Geographical Indication (GI) this fiscal year by the Indian patent office.
• A GI is primarily an agricultural, natural or a manufactured product (handicrafts and industrial goods) originating from a definite geographical territory.
• Typically, such a name conveys an assurance of quality and distinctiveness, which is essentially attributable to the place of its origin.
• Darjeeling tea, Tirupati laddu, Kangra paintings, Nagpur orange and Kashmir pashmina are among the registered GIs in India.
• The other five products which have received the GI tag this year include Pochampally Ikat of Telangana; Gobindobhog rice of West Bengal; Durgi stone carvings and Etikoppaka toys of Andhra Pradesh; and Chakshesang shawl of Nagaland, according to the Indian patent office website.
• In 2016-17, as many as 33 items got GI registration.
• Experts said that this tag gave protection to the producer of these genuine products, which commanded premium pricing in the markets, both domestic and international.
• Once the GI protection is granted, no other producer can misuse the name to market similar products. It also provides comfort to customers about the authenticity of that product

More commercial courts to improve parameters

• Days after India jumped 30 positions in the World Bank’s Ease of Doing Business ranking, Law Ministry officials said the Union government proposed to establish commercial courts in districts to further improve the parameters.
• Legal remedy to commercial disputes and enforcement of business contracts are parameters of the World Bank ranking. In terms of ease of enforcing contracts, India jumped from 172 to 164.
• “Though the jump in the ranking sounds small, it is substantial given the diversities of laws in our country and the complex demography,” said an official of the Law Ministry familiar with the process.
• India’s performance has been varied within the legal framework. For example, the World Bank’s ranking marked “court system and proceedings in India” 4.5 out of a total of 5, but in management of cases, it was 1.5 out of 6. India also fared well in alternative dispute redress mechanism and scored 2.5 out of a total of 3 marks.
• “The government is proposing amendments to facilitate the establishment of commercial courts, at the district level, in places where the High Courts have ordinary original civil jurisdiction,” the official said.
• The specified value of commercial disputes would be brought down so as to expand the scope of commercial adjudication effectively and expeditiously.

::INDIA AND WORLD::

Quadrilateral meet draws criticism from Chinese media

• China reacted cautiously over a proposal by the Trump administration for a working-level quadrilateral meeting with India, Japan and Australia, saying Beijing hoped that it would not target or damage a “third party’s interest”.
• The U.S. was looking at a “working-level” quadrilateral meeting and offer countries in the Indo-Pacific region an alternative to predatory financing or unsustainable debt, the State Department had said last month.
• The proposal was, however, seen by China as an attempt to counter its influence in the region. Its Foreign Ministry hoped that such an arrangement would promote mutual trust among countries in the region and not harm its interest.
• “China hopes the collaboration among relevant countries could comply with the trend of times, which refers to peace, development and cooperation and shared benefits, and also conform to the prospects of the regions and nations for common security and development,” the Ministry said
• The quadrilateral idea has drawn criticism from State-run Chinese media.

::INTERNATIONAL::

Anti corruption sees arrest of Princes, Ministe in Saudi Arabia

• Saudi Arabia has arrested dozens of senior figures including Princes, Ministers and a top business tycoon, with the authorities pledging ‘fair’ justice after a sweeping purge seen as consolidating the Crown Prince’s hold on power.
• Prominent billionaire Al-Waleed bin Talal was among the Princes arrested, immediately after a new anti-corruption commission, headed by Crown Prince Mohammed bin Salman, was established by royal decree.
• Separately, the head of the Saudi National Guard, once a leading contender to the throne, as well as the Navy chief and the Economy Minister were replaced in a series of high-profile sackings that sent shock waves through the kingdom.
• The dramatic shake-up comes at a time of unprecedented social and economic transformation in ultra-conservative Saudi Arabia, as Prince Mohammed steps up his reform drive for a post-oil era.
• Saudi-owned Al Arabiya television reported that 11 Princes, four current Ministers and dozens of ex-Ministers were arrested as the commission launched a probe into old cases, such as floods that devastated the Red Sea city of Jeddah in 2009.
• “The suspects are being granted the same rights and treatment as any other Saudi citizen,” Attorney General Sheikh Saud al-Mojeb said in a statement, adding that a number of investigations had been initiated.
• Shares in Kingdom Holding, 95% of which is owned by Prince Al-Waleed, dived 9.9% as the Saudi stock exchange opened on Sunday after reports of his arrest. The share price later recovered some of its losses to end the day down 7.6%.
• “With this (crackdown), the kingdom heralds a new era and policy of transparency, clarity and accountability,” Saudi Finance Minister Mohammed al-Jadaan was quoted as saying by SPA. “The decisive decisions will preserve the investment environment and boost trust in the rule of law.”
• The kingdom's top council of clerics also lauded the anti-corruption efforts as ‘important’, essentially giving religious backing to the crackdown.
• An aviation source told that security forces had grounded private jets at airports, possibly to prevent high-profile figures from leaving the country.
• The purge comes less than two weeks after Prince Mohammed welcomed business leaders to Riyadh for an investment summit.

Yemen missile intercepted in Riyadh

• Saudi Arabia intercepted and destroyed a ballistic missile near Riyadh’s international airport after it was launched from conflict-torn Yemen, in an escalation of the kingdom’s war against Iran-backed Houthi rebels.
• The missile attack was the first aimed by the Shia rebels at the heart of the Saudi capital, underscoring the growing threat posed by the raging conflict in Yemen.
• A loud explosion was heard and smouldering debris landed inside the King Khalid International Airport, just north of Riyadh, after the missile was shot down but authorities reported no major damage or loss of life.
• “The missile was launched indiscriminately to target the civilian and populated areas. Shattered fragments from the intercepted missile landed in an uninhabited area of the airport and there were no injuries,” he added.
• Houthi rebels, who fired the missile from Yemeni territory more than 1,200 km from Riyadh, said they were targeting the airport, according to the Houthis’ Al-Masirah television channel.
• Civil aviation authorities said the airport was functioning normally and that flights were operating as scheduled, though residents said security vehicles had closed off some roads.
• Saudi forces have shot down Houthi missiles before with Patriot surface-to-air missiles purchased from the United States, but few have come so close to a major population centre.
• The brazen attack could escalate the proxy conflict between Riyadh and Tehran in Yemen. The missile attack highlights how the war in Yemen is increasingly spilling across the border since a Saudi-led coalition began its intervention in 2015.

::SCIENCE AND TECHNOLOGY::

CATOBAR mechanism to be used by Navy

• The Navy is likely to go with an advanced catapult-based aircraft launch mechanism (CATOBAR) from the U.S. for its second indigenous aircraft carrier (IAC-II), which is on the drawing board.
• For some time, India has been exploring the possibility of installing the U.S. electromagnetic aircraft launch system (EMALS).
• “IAC-II will have a CATOBAR launch. However, the kind of propulsion is yet to be decided,” a senior officer said.The U.S. has offered India its latest EMALS technology, developed by General Atomics Aeronautical Systems Inc., which has just been installed on the Gerald Ford carrier.
• While the older generation of CATOBAR was powered by a steam catapult, EMALS uses an electric motor-driven catapult instead, which allows the launch of much heavier aircraft and also reduces the stress on the aircraft.
• However, the system is expensive, something that needs to be factored in.
• “EMALS will allow us to operate heavy surveillance aircraft in addition to heavy fighters,” another officer observed.
• The Navy envisages the IAC-II to be around 65,000 tonnes and capable of carrying over 50 aircraft. While the Navy is keen on nuclear propulsion, which would give it unlimited range and endurance, its development in time seems doubtful.
• The two countries had set up a joint working group on Aircraft Carrier Technology Cooperation (JWGACTC) under the Defence Technology and Trade Initiative, which held several rounds of discussions.The group concluded its 4th meeting in New Delhi.
• India’s first domestic carrier, Vikrant, weighing 40,000 tonnes, is in an advanced stage of construction in Kochi and is scheduled to be launched by 2018-end. It works on a Short Take-Off But Arrested Recovery (STOBAR) mechanism similar to that in the present carrier INS Vikramaditya, with an angular ski-jump.

::SPORTS::

Indian Women Hockey team wins Asia Cup

• India edged past China 5-4 via shootout to win the women’s Asia Cup hockey title.
• With this, India also qualified for next year’s World Cup as Continental champion.
• It was skipper Rani Rampal who scored the winning goal while Savita Punia made a great save in sudden death.
• Savita was adjudged Goalkeeper-of-the-Tournament while Monica won the Woman-of-the-Match award.
• The result: Final: India 1 (Navjot Kaur) bt China 1 (Tiantian Luo) in shootout. Third place: Korea 1 (Hyejeong Shin) bt Japan 0.

::BUSINESS AND ECONOMY::

Rs. 17,000 crore was deposited and withdrawn post-demonetisation

• More than Rs. 17,000 crore was deposited and withdrawn post-demonetisation, by 35,000 companies, the government said.
• It further said about 2.24 lakh companies had been struck-off till date from the Registrar of Companies for remaining inactive for a period of two years or more.
• The Corporate Affairs Ministry said in a statement that to address the criminal angle, the Director, Additional Director or Assistant Director of the Serious Fraud Investigation Office (SFIO) had been authorised to arrest any person believed to be guilty of any fraud punishable under the Companies Act.
• Besides, it said, steps were under way to set up the National Financial Reporting Authority (NFRA), an independent body that would test-check financial statements, prescribe accounting standards and take disciplinary action against errant professionals.
• In addition, a separate initiative is also under way to develop a state-of-the-art software application to put in place an ‘Early Warning System’ — to be housed in SFIO — to strengthen the regulatory mechanism, it added. Following the striking-off of defaulting companies, restrictions had been imposed on the operation of their bank accounts.
• Information received from 56 banks showed in respect of 35,000 companies, involving 58,000 accounts, more than Rs. 17,000 crore was deposited and withdrawn post-demonetisation, according to the statement.
• Besides the restrictions on bank accounts, action had also been taken to restrict sale and transfer of moveable and immoveable properties of struck-off companies until they were restored.
• States were advised to take necessary action in this regard by disallowing registration of such transactions, it said. Stating a company was found to have had as many as 2,134 accounts, the Ministry said information about such companies had been shared with enforcement authorities for further action.
• Separately, action had been taken to disqualify directors on boards of companies that failed to file financial statements and/or annual returns for a continuous period of three financial years between 2013-14 and 2015-16. About 3.09 lakh directors were affected by the action.
• To check the problem of dummy directors, action was being taken to seed DIN (director identification number) with PAN and Aadhaar at the stage of DIN application through biometric matching. It may be extended to legacy data in due course.

PSU banks may get Rs. 70,000 cr. via recap bonds in four months

• The Finance Ministry may infuse about Rs. 70,000 crore through recapitalisation bonds in the NPA-hit public sector banks (PSBs) in the next four months, sources said.
• Finance Minister Arun Jaitley had announced a Rs. 2.11 lakh crore two-year road map for strengthening public sector banks. The plan included re-capitalisation bonds of Rs. 1.35 lakh crore.
• Currently, the government is finalising the structure of bonds and decision in this regard could be made.
• The Minister had said that there were multiple options before the government for recapitalisation bonds and the best ones would be explored.
• Once the structure is in the place, the Centre will front-load bond issuance and preliminary assessment indicates that it could be between Rs. 70,000 and Rs. 80,000 crore, sources said.
• However, nothing has been finalised yet, they said, adding the Ministry would get better picture of requirements of various banks after the second quarter results.
• Non-performing assets (NPAs) of public sector banks alone have increased from Rs. 2.75 lakh crore as on March 2015 to Rs. 7.33 lakh crore as on June 2017.
• Besides the bonds, the Minister announced banks would get about Rs. 18,000 crore under Indradhanush plan over the next two years.

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