June 5, 2018

WORD OF THE DAY

IMPOSSIBLE TRINITY

This is a situation in international economics where it is impossible for a government to have a fixed foreign exchange rate, no capital controls and an independent monetary policy at the same time.

Courtesy: Mint

 

NATIONAL NEWS

  1. The Union government has announced a package of more than Rs 8,000 crore aimed to provide relief to sugarcane farmers and to clear their dues.
    • According to a government official, the package includes three elements.
    • A buffer stock of 30 LMT (lakh metric tonnes) of sugar will be created with Rs 1,200 crore.
    • The government has also increased minimum selling price (ex-mill sale price) to Rs 29 per kg from Rs 25 per kg
  1. Union Minister of State for Chemicals & Fertilizers, Road Transport & Highways, Shipping, Mansukh L. Mandaviya, launched the ‘JANAUSHADHI SUVIDHA’
    • It is the oxo-biodegradable Sanitary Napkin, under the Pradhan Mantri Bhartiya Janaushadhi Pariyojana (PMBJP).
    • The affordable sanitary napkins will be made available at more than 3600 Janaushadhi Kendras in 33 States/UTs in India
    • The SUVIDHA napkins are offered at 2.50 per pad.
  1. Inspired by the ‘Make in India’ initiative of the central government, the Union Minister of State (Independent Charge) of the Ministry of Development of North Eastern Region (DoNER), Dr Jitendra Singh mooted the initiative named: ‘Make in Northeast’.
    • It has been done to Identify the products of the north-eastern states and give them the opportunity to collaborate with stakeholders 
    • Each of the 8states can be given recognition with its own identity for eg.: Sikkim can be referred to as the “Organic State of India, Mizoram as the “Bamboo State of India“, Manipur as the “Textiles State of India”.
  1. Jammu and Kashmir government is to host its first ever “Global Investors Meet” at the end of July 2018 in Srinagar, focused on harnessing hydropower potential of 20,000 megawatts in Jammu Kashmir.
  2. National Minorities and Finance Corporation (NMDFC) has joined hands with 4 agencies of Jammu and Kashmir government to work for the empowerment of minorities
    • The 4 agencies are: J&K Entrepreneurship Development Institute (JKEDI), J&K Women’s Development Corporation (WDC), J&K SCs/STs & Backward Classes (BCs) Development Corporation and Jammu & Kashmir State Financial Corporation (SFC).
  1. The state government of Haryana announced a hike of 2%on the Dearness Allowance (DA).
    • This would increase the DA from 5% to 7%.
  1. Hindustan Unilever has decided to merge its foods and refreshments business into one division with effect from July 2018.
  2. The central board of indirect taxes and customs issued a detailed FAQ clarifying queries on the applicability of the Goods and Services Tax (GST) on the financial services sector
    • Taxable under GST-
      1. Interest charged on outstanding credit card dues, on finance lease
      2. Due to delays in certain types of loan installment repayments
      3. Interest or charges for delayed payments of brokerage amount or settlement obligations
      4. Exit load in the form of fees on mutual funds and services provided by banks to RBI 
  • Not Taxable under GST-
    1. Free services provided by a bank to its customers
    2. Derivatives, securitization assets, future and forward contracts (with some riders)
    3. Interest levied on most loans
    4. Interest on debt instruments

 

  1. Drug makers may have to contribute medicines equivalent to at least 1% of their average profit in the past three years to create a medicine bank that will be used during public health emergencies in India or abroad, according to a government proposal

 

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INTERNATIONAL NEWS

  1. Ben Lacomte, French swimmer has set off from Japan aiming to become the first person to swim across the Pacific Ocean. 
  2. WHO Director-General Dr Tedros Adhanom Ghebreyesus and Portugal Prime Minister António Costa launched the new “WHO Global action plan on physical activity and health 2018-2030: More active people for a healthier world.”
  • The action plan explains how countries can reduce physical inactivity in adults and adolescents by 15% by 2030.
  • It specifies a set of 20 policy areas aimed to develop more active societies by improving the environments and opportunities for people of all ages and abilities to do more walking, cycling, sport, active recreation, dance and play.

 

  1. Saudi Arabia gave away its first batch of driving licenses to women after decades-long ban.
    • Saudi Arabia the only country where women are not allowed to drive.
    • The ban ends on June 24, 2018

 

  1. Citi Bank becomes the first corporate bank to make use of UK’s Open Banking regime.
    • According to the open banking regime, the European Banks are required to share customer data with third-party banks upon the customers’ approval.
    • Citi Bank is the first to enroll as “Payment Initiation Service Provider”.
    • This would enable it to receive small payments directly from UK’s customer bank accounts without debit or credit cards.
    • The Institute of Chartered Accountants of India (ICAI) and South African Institute of Chartered Accountants (SAICA) have signed an agreement to set up a framework for recognizing members easier and encourage mobility of professionals between both countries, at the SAICA head office in Johannesburg.
  1. The Fuego volcano erupted in El Rodeo, Guatemala on June 3, 2018
    • Also known as The Volcan de Fuego, or “Volcano of Fire”.

 

BANKING AND ECONOMY

  1. Microlender Bharat Financial Inclusion Ltd. gets a no–objection nod for its merger with IndusInd Bank
    • Bharat Financial (earlier known as SKS Microfinance)
  1. Unlike in the past when RBI used to issue an annual forecast for inflation that came up for frequent review, it now has a quarterly forecast, an annual forecast and even an average inflation rate it sees in the first and the second half of a fiscal year

 

  1. Vedanta Ltd has taken over control of bankrupt company Electrosteel Steels Ltd
    • Vedanta Star Ltd, fully owned subsidiary of Vedanta Ltd, has deposited an upfront amount of 5,320 crore in an escrow account for the Electrosteel acquisition.

 

APPOINTMENTS

  1. Derrick Pereira, FC Goa assistant head coach and former footballer, has taken charge as the new Technical Director of FC Goa.

 

 

IMPORTANT DAYS

  1. World Environment Day – June 5
    • World Environment Day is the United Nations’ (UN) most important day for encouraging worldwide awareness and action for the protection of our environment
    • The theme for the World Environment Day 2018, “Beat Plastic Pollution”.
  1. On 5th June 2018, International Day for the Fight against Illegal, Unreported and Unregulated Fishing was observed.
    • UN also declared 2022 as the International Year of Artisanal Fisheries and Aquaculture, to focus on small-scale fishermen and women who comprise 90 % of the world’s fisheries workforce.

 

AWARDS

  1. Four-year-old Ayan Gogoi Gohain of North Lakhimpur district, Assam was honoured with the ‘Youngest Author of India’ title by The India Book of Records.
    • He has been awarded for his book “HoneyComb

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