1) The Reserve Bank of India (RBI) on 13 October 2014 came out with an additional criterion for classifying an urban co-operative bank (UCB) as financially sound and well managed (FSWM). What is this additional criterion? – Implementation of Core Banking Solution (CBS)
Explanation: Till now the UCBs were classified as FSWM banks if they fulfilled criteria such as capital to risk weighted assets ratio of not less than 10%, gross non-performing assets (NPAs) of less than 7% and net NPAs of not more than 3%. The new criterion of CBS implementation would henceforth be considered for processing applications received from UCBs for opening of on-site/off-site / mobile ATMs, applications under Annual Business Plans, extension of area of operation, shifting of premises and all other permissions from RBI. The other criteria prescribed by the RBI for classifying a UCB as financially sound and well managed are: net profit for at least three out of the preceding four years, subject to it not having incurred a net loss in the immediate preceding year; no default in the maintenance of cash reserve ratio / Statutory Liquidity Ratio during the preceding financial year; sound internal control system with at least two professional directors on the Board; and regulatory comfort.
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2) Who won the Nobel Prize for Economics for 2014 as announced by the Royal Swedish Academy of Sciences on 13 October 2014? – French economist Jean Tirole
Explanation: Tirole was chosen for his analysis of market power and regulation. The Academy commended him for the way he presented his theory clarifying how to understand and regulate industries with a few powerful firms. The Nobel Prize for Economics is officially called the Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel and was not part of the original group of awards set out in his will of 1895.
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3) According to reports appearing in media during October 2014, the Union Govt. is on its way for a major overhaul of the current monetary policy framework. Under this the govt. will specify specific inflation related targets for the Reserve Bank of India (RBI) instead of the RBI setting a target for itself. This decision is a big departure from the recommendations of a recent expert committee of the RBI, which had recommended that the monetary policy decision-making should be vested with a monetary policy committee, chaired by the RBI Governor. Who headed this RBI committee? – Urjit R. Patel, Deputy Governor of the RBI
Explanation: Union Government had decided to set targets for the RBI as it feels that it is best that inflation targets are set by the governments elected by the people instead of the bureaucrats. It is worth mentioning that the Urjit Patel Committee (The Committee on Strengthening Monetary Policy Framework) in its recommendations had also stated that the RBI should adopt the new Consumer Price Index (CPI) as the measure of the nominal anchor for monetary policy and set the target CPI inflation level at 4 per cent (+/- 2%) to be achieved through its monetary policy tools.
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4) Who was conferred with the Best Central Bank Governor award for 2014 by Euromoney magazine on 10 October 2014? – Raghuram Rajan, Governor of Reserve Bank of India
Explanation: This prestigious award was given to him for the tough monetary measures adopted by him to battle the storm ravaging the deficit-ridden Indian economy in the recent market crisis. In January 2003, the American Finance Association had awarded Raghuram Rajan the inaugural Fischer Black Prize for the best finance researcher under the age of 40.
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5) Who was appointed as the next Chief Economic Adviser on 16 October 2014? –Arvind Subramanian
Explanation: Arvind Subramanian was earlier a senior fellow at the Washington-based Peterson Institute for International economics. He is pronouncedly pro-market and has in the past argued for quicker subsidy reforms, fast introduction of GST, and faster deficit reduction than the temporal target set by the government. The post of Chief Economic Adviser has been lying vacant since Raghuram Rajan left the Finance Ministry to join the Reserve Bank of India as the Governor more than a year ago.
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6) Which prominent real estate company was barred by Indian capital market regulator SEBI from accessing capital markets for three years on 13 October 2014? – DLF Limited
Explanation: DLF Limited along with its founder-chairman K.P. Singh and 5 top executives were barred from accessing India’s capital markets for three years. This penalty was imposed due to some non-disclosure violations related to DLF’s initial public offering (IPO) of 2007. SEBI had investigated whether the company had disclosed in its IPO documents the names of all of its subsidiaries and the legal cases pending against those companies.
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7) What is the name of the new global service launched by the World Bank on 9 October 2014 which aims at mobilising the private sector to help tackle the massive infrastructure deficit facing developing countries? – Global Infrastructure Facility (GIF)
Explanation: GIF was launched by World Bank President Jim Yong Kim at Washington D.C. This facility basically aims to ensure that billions of dollars are channelised to develop world-class infrastructure in emerging markets like India and developing economies. Through GIF, the World Bank plans to work with regional banks and financial entities like Asian Development Bank (ADB), the New Development Bank (NDB) of BRICS countries and the proposed Asian Infrastructure Investment Bank (AIIB).
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8) According to media reports, the Reserve Bank of India (RBI) has ordered its supervision team to monitor trading in debt markets by companies. This is the strongest expression of concern shown by the RBI on this issue. What is the primary reason for this move of the RBI? – Reports that many companies are building large trading positions in debt and currency markets
Explanation: Trading in debt markets by companies could pose risks to financial market stability as it exposes the companies to greater price volatility. However, some companies indulge in this trading as this can be a lucrative extra source of profits for them. Companies are legally allowed to invest in markets in India, but it has seldom raised RBI’s concerns until recently, when they have become much more active players.
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9) India’s wholesale price inflation for September 2014 eased to 2.38% as announced by the Union Govt. on 14 October 2014. This was the lowest WPI-based inflation since when? – Since October 2009
Explanation: The wholesale price index (WPI)-based inflation for September 2014 was down to 2.38% mainly due to lowered prices of food and fuel. In August 2014, wholesale prices rose by 3.74%. The inflation based on consumer price index (CPI) for September 2014 was 6.46%, which was the lowest since the latest data series started in January 2012.
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10) Prime Minister Narendra Modi on 16 October 2014 kicked-off an overhaul of archaic labour rules in the country by launching a series of ambitious steps. What was the name of this programme which integrates numerous labour related reforms? – “Pandit Deendayal Upadhyay Shramev Jayate Karyakram”
Explanation: Pandit Deendayal Upadhyay Shramev Jayate Karyakram was launched to implement a series of labour reforms. This includes measures to end the so-called ‘Inspector-Raj’ with a system that is expected to sharply curb the element of discretion with labour inspectors and a single window compliance process.
Important initiatives under “Pandit Deendayal Upadhyay Shramev Jayate Karyakram” are –
- Shram Suvidha Portal for single-window clearance of business proposals. Shram Suvidha Portal simplifies compliance of 16 labour laws, through a single online form.
- Web-based labour inspection system for random selection of units for inspection
- Apprentice Protsahan Yojana and the Effective Implementation of revamped Rashtriya Swasthya Bima Yojana (RSBY) for labour in the unorganized sector
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– Universal account number for Provident Fund with easy portability of PF accounts
– Appointment of National Brand Ambassadors of Vocational Training to instill pride and confidence in ITI students
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