current affairs for the day

[Note:

 DEAR STUDENTS FROM NOW ON WARDS I WILL BE SENDING SOME BASIC CONCEPT WHICH YOU HAVE TO BE STRONG FOR YOUR PRELIMS...........HAVE A TRACK OF OUR    rds blog for current affairs  ]

ECONOMICS FOR THE DAY

Monetary policy

1)What is monetary policy?

It is policy with regard to supply of money and credit (loan) and determination of structure of economy. The central bank (RBI) is the only authority to determine the monetary policy. RBI was set up in 1935 and was nationalised in jan 1, 1949.

2)What is INDIAN FOREX RESERVE?

Indian forex reserve is reserve maintained by RBI in the form of

a)      Foreign currency assets( hard currency asset) ie...dollar,pound,euro,yen. Hard currency are those currency which is accepted for any transaction at international level.

b)      Gold

c)       SDR- special drawing rights of IMF. Its is not a physical unit of currency. It is a notional unit. Its only used through book entry. Its is also called paper gold or reserve currency

BILATIRAL

INDIA AND JAPAN

Why the visit of emperor of japan in news?

Japan is the world oldest continuous hereditary royalty and no emperor has visited india and this is the first time japan emperor visits india which will lead to a development of strategic tie between the two democracy.

How do japan refer india? Tenjiku or heavenly country

What are the economic tie up between both the country?

Japan has been the largest source of aid and is playing a key role in helping india to improve infrastructure.

 a)      Delhi Mumbai corridor

b)      Bangalore metro projects

c)       Delhi Mumbai railway cooperation

d)      Bangalore Chennai express way

e)      Iit Hyderabad

(refer india year book chapter india and world , industry)

Do india has a historical relationship with Japan?

Yes India has a historical relationship with japan with  the root to the introduction of Buddhism in the 6^th century. Todaji temple is the oldest temple in the city capital where the largest Buddha statue has bben created. For opening the eyes of the statue a priest from india was taken who conducted the ceremony before the emperor.

Similarly the language of Japan has a similarity with the Sanskrit language of india.

What is the difference in INDIA AND JAPAN?

India has a world largest youth population ,while japan is ageing more rapidly than any other developed country.

India has a service led growth, Japan is a manufacturing lead economy.

Challenges to japan?

Japan was experiencing a economic stagnation for a long span , shrinking population , spiralling  public debt, deflationary environment, security dilama-constraint-from us, post war constitution.

India and japan  today?

The reason why both are together are because both are energy poor country heavily dependent on unstable Persian Gulf region.

From 2006-“STRATEGIC AND GLOBAL PARTNERSHIP”

2011- “COMPREHENSIVE ECONOMIC PARTNERSHIP AGGREEMENT” and also alliance for rare earth minerals to reduce dependence on China.

Japan has the 6^th largest defence budget in the world and Asias largest naval fleet.

Suggessions:

India is a importer of Arms so they have to go close tie with japan to develop an indigenous Arms.

Difference between strategic tie and economic tie?

Strategic tie: world stable economics like japan-us, atlantic community are all based on security collaboration so they are stable.

Ecomonic tie: the economic tie are less stable and even volatile like china economic relationship with india, uas, japan.

current affair and a question area

Current affairs:

1)      Who is Fedrick sanger?

He is a British biochemist. He is called the father of GENOMICS. He has received nobel prize award twice for chemistry. Once for the structure of protein (Insulin) and the other for the structure and functional sequence of DNA. He received nobel prize in 1954 and 1980. He was also awarded with British’s honourable knighthood  but he declined it.

Some of his findings were:

a)      Structure of Insulin –where he proved protein were linear strings of amino acids.

b)      Method of Sequencing DNA- which helped us to understand the concept of healthcare and new cancer treatments.

{Note: dear students try to learn more about DNA and protein and insulin form NCERT science text books }

2)      INDIA –PAKISTAN

What is ceasefire?

Its a sort of boarder line drawn between the two country.

When and what is the “ten year ceasefire” which was in Hindu paper recently?

In the year 1972 Shimla Agreement an informal “ceasefire Line” called as line of control was drawn between the Pakistan and India  counterpart. This LOC though was not legally designated it seems to be like a border for both the country.

Two years after the parliament of india was stacked in the year 2003 Pakistan and India both unilaterally announced the “ceasefire”. From 2003 India started to build a fencing line of 750 km in the boarders and around 550 km line was completed by 2004. This fencing was made to stop firing.

In 2005 a joint statement was accepted by both the high level officials on “convention of confidence building measures” and the commitment in the convention was

a)      The two DGMO’S will set a hotline

b)      Hold monthly flag meeting between the local commanders of the sectors.

c)       New post will not be developed along the LOC

Why it was in news recently?

Since 2005 no problem was raised on both the side . each maintained the LOC . but in 2008 as the new government took the position in Pakistan the sinario  got changed. Since from 2011 to 2013 more than 200 ceasefire violation was filled. In the year 2013 some of the soldiers of India were beheaded by the Pakistan military forces.

What is LAC?

The LAC (line of actual control) is a demarcating line between the lands of india and the lands of china. This is a 4056km line that run at the boarder of jammu and Kashmir, uttarkhand, himachal and Sikkim. After 1962 to 1993, this line was not made a official line. This was because the china’s PM insisted Mcmohan line as the line of demarcation which was refused by the then counter part mr.Nehru during sino-india war(1963). Later in 1996 sino india agreement it gained legal recognition. Recently in the month of October mr.Manmohan and china’s PM likequiang ha signed a agreement on “BOARDER DEFENCE COOPERATION AGGREEMENT” to improve the LAC . for which a high level representatives has been appointed on both the sides.

Difference between LOC and LAC

LAC has been formally and legally enhanced by both the government. LOC is only an oral commitment and was not a formal agreement

The success of LAC even dependence on the relationship between india and china. But the relationship between india and Pakistan is indeed different too.

The military relationship holds strong for effective implementation of LAC. The proxy war concept maintained by Pakistan military seems to be a hurdle facts to india.

23.11.13 to 24.11.13

TIME TABLE FOR TNPSC BATCHES-

C.I.T -6TH (BOTH WEEKEND AND REGULAR)

Saturday – 2.30 to 5.30 current affair

                  5.30 to 7.30 apps

Sunday – 10.00 to 5.00 Science

C.I.T -22

Saturday – 2.30 to 5.30 current affair

                  5.30 to 7.30 apps

Sunday – 10.00 to 5.00 Science

                       

                                                            

C.I.T :21

Saturday – 2.30 to 5.30 current affair

                  5.30 to 7.30 apps

Sunday – 10.00 to 5.00 Science

T.NAGAR-6 

Saturday – No class

Sunday – Test

T.NAGAR-22

Saturday – No class

Sunday – No class

BOG-4

Saturday – No class

Sunday – No class

RBI POLICY ON FOREIGN BANKS

RBI releases Framework for setting up of Wholly Owned Subsidiaries by Foreign Banks in India

dear students: note the news about this WOS will be updated in news and papers too have a note of it question area for prelims and mains...........if u didn’t understand anything or doubts mail us :rds_ias.study@yahoo.com

The Reserve Bank of India (RBI) today released on its website, the framework for setting up of Wholly Owned Subsidiaries (WOS) by foreign banks in India . The policy is released in pursuance of the announcement made in the Second Quarter Review of Monetary Policy 2013-14 ( para 26 ). The policy is guided by the two cardinal principles of (i) reciprocity and (ii) single mode of presence. As a locally incorporated bank, the WOSs will be given near national treatment which will enable them to open branches anywhere in the country at par with Indian banks (except in certain sensitive areas where the Reserve Bank’s prior approval would be required). They would also be able to participate fully in the development of the Indian financial sector. The policy incentivises the existing foreign bank branches which operate within the framework of India’s commitment to the World Trade organisation (WTO) to convert into WOS due to the attractiveness of near national treatment. Such conversion is also desirable from the financial stability perspective. To provide safeguards against the possibility of the Indian banking system being dominated by foreign banks, the framework has certain measures to contain their expansion if the share of foreign banks exceeds a critical size. Certain measures from corporate governance perspective have also been built in so as to ensure that the public interest is safeguarded.

 Background In 2004,of WOS:-

 Government of India with a view to liberalising foreign direct investments (FDI) in private sector banks raised the FDI limit to 74 per cent in the private sector banks under the automatic route and also permitted foreign banks, regulated by a banking supervisory authority in the home country and meeting the Reserve Bank’s licensing criteria to hold 100 per cent paid up capital, to set up a WOS in India. To operationalise the FDI guidelines, the Reserve Bank released the roadmap for presence of foreign banks in India in consultation with the Government of India on February 28, 2005. The roadmap was divided into two phases – the first phase spanning the period March 2005 to March 2009 and the second phase beginning after a review of experience gained in the first phase. In the first phase, foreign banks already operating in India were allowed to convert their existing branches to WOS while following the ‘one-mode presence’ criterion and the WOS was to be treated at par with the existing branches of foreign banks for branch expansion in India. The second phase of the roadmap which was to commence in April 2009 envisaged removal of limitations on the operations of WOS and treating them on par with the domestic banks to the extent appropriate. During the first phase no foreign bank came forward to set up or convert their branches into WOS in the absence of adequate incentives. As a sequel to the roadmap of 2005 and pursuant to the announcements made in the Annual Policy Statement for 2010-11, the Reserve Bank issued a Discussion Paper in January 2011 on the mode of presence of foreign banks in India. The framework for setting up of WOS by foreign banks in India has now been finalised taking into account the feedback received on the Discussion Paper and factoring in the lessons from the crisis which favours a subsidiary mode of presence from financial stability perspective.

Key features of the Framework :-

Banks with complex structures, banks which do not provide adequate disclosure in their home jurisdiction, banks which are not widely held, banks from jurisdictions having legislation giving a preferential claim to depositors of home country in a winding up proceedings, etc., would be mandated entry into India only in the WOS mode.

Foreign banks in whose case the above conditions do not apply can opt for a branch or WOS form of presence. A foreign bank opting for branch form of presence shall convert into a WOS as and when the above conditions become applicable to it or it becomes systemically important on account of its balance sheet  size in India. Foreign banks which commenced banking business in India before August 2010 shall have the option to continue their banking business through the branch mode.  However, they will be incentivised to convert into WOS because of the attractiveness of the near national treatment afforded to WOS. To prevent domination by foreign banks, restrictions would be placed on further entry of new WOSs of foreign banks/ capital infusion, when the capital and reserves of the WOSs and foreign bank branches in India exceed 20 per cent of the capital and reserves of the banking system. The initial minimum paid-up voting equity capital for a WOS shall be ` 5 billion for new entrants. Existing branches of foreign banks desiring to convert into WOS shall have a minimum net worth of ` 5 billion. The parent of the WOS would be required to issue a letter of comfort to the RBI for meeting the liabilities of the WOS.

Corporate Governance – (i) not less than two-third of the directors should be non-executive directors; (ii) a minimum of one-third of the directors should be independent of the management of the subsidiary in India, its parent or associates; (iii) not less than fifty per cent of the directors should be Indian nationals /NRIs/PIOs subject to the condition that not less than 1/3rd of the directors are Indian nationals resident in India.

The branch expansion guidelines as applicable to domestic scheduled commercial banks would generally be applicable to WOSs of foreign banks except that they will require prior approval of RBI for opening branches at certain locations that are sensitive from the perspective of national security. Priority Sector lending requirement would be 40 per cent for WOS like domestic scheduled commercial banks with adequate transition period for existing foreign bank branches converting into WOS. On arm’s length basis, WOS would be permitted to use parental guarantee/ credit rating only for the purpose of providing custodial services in India and for their international operations. However, WOS should not provide counter guarantee to its parent for such support. WOSs may, at their option, dilute their stake to 74 per cent or less in accordance with the existing FDI policy. In the event of dilution, they will have to list themselves. The issue of permitting WOS to enter into M&A transactions with any private sector bank in India subject to the overall investment limit of 74 per cent would be considered after a review is made with regard to the extent of penetration of foreign investment in Indian banks and functioning of foreign banks (branch mode and WOS). 

Priority Sector Lending is an important role given by the Reserve Bank of India (RBI) to the banks for providing a specified portion of the bank lending to few specific sectors like agriculture or small scale industries. This is essentially meant for an all round development of the economy as opposed to focusing only on the financial sector.^[

Capital adequacy:the statutory minimum reserves of capital which a bank or other financial institution must have available.

16.11.13

TIME TABLE FOR TNPSC BATCHES-

C.I.T -6TH (BOTH WEEKEND AND REGULAR)

Saturday – No class

Sunday – 10.00 to 12.00 current affair

C.I.T -22

Saturday – No class

Sunday – 10.00 to 12.00 current affair

                 12.30 to 2.30 Economics

                       

                                                            

C.I.T :21

Saturday – No class

Sunday – 10.00 to 12.00 current affair

                 12.30 to 2.30 Economics

T.NAGAR-6 

Saturday – No class

Sunday – No class

T.NAGAR-22

Saturday – No class

Sunday – No class

BOG-4

Saturday – No class

Sunday – No class

15.11.13

TIME TABLE FOR TNPSC BATCHES-

C.I.T -6TH (BOTH WEEKEND AND REGULAR)

Friday – No class

C.I.T -22

Friday – 10.00 to 1.00 (History)

                       

C.I.T :21

Friday – 10.00 to 1.00 (History)

T.NAGAR-6 

Friday – No class

T.NAGAR-22

Friday – No class

BOG-4

Friday – No class

RDS IAS STUDY CIRCLE

WISH YOU A HAPPY DIWALI

Dear Students all TNPSC Batches, Saturday and Sunday holiday.

Regards

Rds

TIME TABLE FOR TNPSC BATCHES- (9.11.13)

C.I.T -6TH (BOTH WEEKEND AND REGULAR)

Next week test portions History, Science 8^th,9^th, Apps (Ratio, Average and SI) and Tamil Test 2 papers

C.I.T -22

Next week test portion History, Science 8^th,9^th, Apps (Ratio, Average and SI) and Tamil Test 2 papers

                       

C.I.T :21

Dear students test will be started on (10.11.13) G.S. and Tamil (2 papers)

Test Portion History 1600 – 1900, Science 7^th, and Ratio

T.NAGAR-6 

Next week test portion History, Science 8^th,9^th, Apps (Ratio, Average and SI) and Tamil Test 2 papers

T.NAGAR-22

Next week test portion History, Science 8^th,9^th, Apps (Ratio, Average and SI) and Tamil Test 2 papers

BOG-4

Dear students test will be started on (10.11.13) G.S. and Tamil (2 papers)

Test Portion History 1600 – 1900, Science 7^th, and Ratio