List of Selected Abbreviations for banking Exams

List of Selected Abbreviations for banking Exams

AACS As Applicable to Co-operative Societies

ABEP Annual Branch Expansion Programme

ADF Automated Data Flow

ADR American Depository Receipt

AEs Advanced Economies

AFA Additional Factor of Authentication

AFCs Asset Finance Companies

AFI Annual Financial Inspection

PRE-2005 NOTES

1. What are the pre-2005 series banknotes?

The RBI issued Mahatma Gandhi series (MG series) 2005 banknotes in the denomination of ` 10, ` 20, ` 50, ` 100, ` 500 and ` 1000. These notes contain some additional / new security features as compared to the 1996 MG series. All banknotes issued before the 2005 MG series are called as pre-2005 series banknotes.
2. How can one distinguish the pre-2005 series banknotes? Apart from the additional security features, the 2005 MG series banknotes have the year of printing on the reverse of the notes in the lower middle portion. Banknotes printed before 2005 do not have the year of printing on the reverse side and hence can be easily distinguished.

3. Why has RBI decided to withdraw pre-2005 series banknotes?

Reserve Bank of India decided to withdraw from circulation all banknotes issued prior to 2005 as they have fewer security features as compared to banknotes printed after 2005. The withdrawal exercise is in conformity with the standard international practice of not having multiple series of notes in circulation at the same time. The RBI has already been withdrawing these banknotes in a routine manner through banks. It is estimated that the volume of such banknotes (pre-2005) in circulation is not significant enough to impact the general public in a large way and the members of public may exchange the pre-2005 series banknotes at bank branches at their convenience.

4. Do the pre-2005 series banknotes cease to be legal tender?

The notes issued before 2005 shall continue to be legal tender. The notes are only being withdrawn from circulation and this withdrawal exercise is in conformity with the standard international practice of not having multiple series of notes in circulation at the same time.
5. Can the pre-2005 series banknotes be used for normal transactions? Members of the public can continue to freely use these notes for their transactions and can unhesitatingly receive these notes in payment, as all such notes continue to remain legal tender.

6. Is there any time limit for exchanging these notes?

These notes can be freely exchanged at any bank branch till January 1, 2015. The procedure to be followed after January 1, 2015, shall be communicated by RBI in due course.

7. How is RBI ensuring that these notes are withdrawn from circulation?

Banks have been advised to stop re-issue of the pre-2005 series notes over the counters/through ATMs and they have been instructed to forward them to the Reserve Bank of India.

8. Is there any restriction on the number of pieces that can be exchanged?

No. There is no such restriction. Banks have been advised to freely exchange these notes till January 1, 2015.

9. Is it necessary to be a customer of the bank to exchange the pre-2005 series notes from its branches?

No. Banks have been advised to freely provide this exchange facility to all members of public, whether customer or non-customer.

10. Is it necessary to get cash in exchange or the amount can be credited in one’s account?

It is not necessary to get cash in exchange for the pre-2005 notes. If a person desires, he can get the amount credited in his bank account.

11. Is there any fee to be paid for the exchange facility?

No. The exchange facility is to be provided free of cost by all bank branches.

CHEQUE TRUNCATION SYSTEM

1. What is Cheque Truncation?
Truncation is the process of stopping the flow of the physical cheque issued by a drawer at some point with the presenting bank en-route to the drawee bank branch. In its place an electronic image of the cheque is transmitted to the drawee branch by the clearing house, along with relevant information like data on the MICR band, date of presentation, presenting bank, etc. Cheque truncation thus obviates the need to move the physical instruments across branches, other than in exceptional circumstances for clearing purposes. This effectively eliminates the associated cost of movement of the physical cheques, reduces the time required for their collection and brings elegance to the entire activity of cheque processing.
2. Why Cheque Truncation in India?
As explained above, Cheque Truncation speeds up the process of collection of cheques resulting in better service to customers, reduces the scope for clearing-related frauds or loss of instruments in transit, lowers the cost of collection of cheques, and removes reconciliation-related and logistics-related problems, thus benefitting the system as a whole. With the other major products being offered in the form of RTGS and NEFT, the Reserve Bank has created the capability to enable inter-bank and customer payments online and in near-real time. However, as cheques are still the prominent mode of payments in the country and Reserve Bank of India has decided to focus on improving the efficiency of the cheque clearing cycle, offering Cheque Truncation System (CTS) as an alternative. As highlighted earlier, CTS is a more secure system vis-a-vis the exchange of physical documents.
In addition to operational efficiency, CTS offers several benefits to banks and customers, including human resource rationalisation, cost effectiveness, business process re-engineering, better service, adoption of latest technology, etc. CTS, thus, has emerged as an important efficiency enhancement initiative undertaken by Reserve Bank in the Payments Systems area.

RBI UPDATES JANUARY 2014

 The Reserve Bank had, on September 16, 2013 issued instructions to NBFCs for lending against gold jewellery (referred to as ‘the circular’). The Reserve Bank, in January 2014, revised its instructions partially in the wake of the Reserve Bank receiving certain representations from NBFCs. According to the revised instructions:

i) Loan-To-Value (LTV) Ratio

In view of the moderation in the growth of gold loan portfolios of NBFCs in the recent past, and also taking into consideration the experience so far, it has been decided to raise the Loan-to-Value (LTV) ratio to up to 75 per cent for loans against the collateral of gold jewellery from the present limit of 60 per cent with immediate effect.

The Reserve Bank further clarified that the value of the jewellery for the purpose of determining the maximum permissible loan amount will be only the intrinsic value of the gold content and no other cost elements should be added to it. The intrinsic value will continue to be arrived at as detailed in ‘the circular’. It was understood that some NBFCs were adding making charges, etc., to the value of the gold jewellery determined in terms of paragraph 2(iii) of ‘the circular’.

ii) Standardisation of Value of Gold in arriving at LTV Ratio

The Reserve Bank has clarified that the need to give a certificate on the purity of gold cannot be dispensed with. The certified purity should be applied for determining the maximum permissible loan and the reserve price for auction. The NBFCs can, however, include suitable caveats to protect themselves against disputes on redemption.

As per para 2 (iii) of ‘the circular’, NBFCs were required to give in writing to the borrower the purity (in terms of carats) and weight of gold. NBFCs had raised apprehensions on certifying the purity of the gold jewellery accepted as collateral on grounds that under the current practices it was possible only to arrive at the proximate purity of the gold and that such a certification could lead to dispute with the borrowers.

iii) Verification of the Ownership of Gold

In view of the fact that it may not be possible for borrowers to produce receipts establishing ownership, especially when the jewellery has been inherited, the Reserve Bank clarified that the ownership verification need not necessarily be through original receipts for the jewellery pledged but a suitable document may be prepared to explain how the ownership was determined, particularly in each and every case where the gold jewellery pledged by a borrower at any one time or cumulatively on loan outstanding is more than 20 grams. The Reserve Bank has also directed NBFCs to have an explicit policy in this regard in their overall loan policy.

In terms of para 2 (iv) of ‘the circular’, NBFCs were required to keep a record of verification of ownership of the jewellery where the gold jewellery pledged by a borrower at any one time or cumulatively on loan outstanding is more than 20 grams. Also, NBFCs were required to lay down the method of establishing ownership in its overall loan policy approved by its Board.

iv) Auction Process and Procedures

In terms of para 2 v of ‘the circular’, NBFCs were directed to conduct the auction in the same town or taluk in which the branch that had extended the loan is located. Representations have been received seeking permission to conduct auction in the district rather than the taluk. The Reserve Bank has not found it feasible to accept this request and as such the current instructions remain unchanged.

v) Other Instructions

In terms of para 2 vi (ii) of ‘the circular’, NBFCs were directed to disburse high value loans of ` one lakh and above, only through cheque. NBFCs had represented that payment by issue of cheques would lead to delay in the borrower getting access to the funds and the delays could be accentuated where disbursements happen during weekends. It is observed that a majority of the loans in the portfolio of NBFCs is below ` one lakh. It has, therefore, been decided to retain the current instructions in this regard.

Risk Weights and Provisioning For guaranteed Low Income Housing Loans

For loans guaranteed by Credit Risk Guarantee Fund Trust for Low Income Housing (CRGFTLIH):

i) Risk weight: NBFC-MFIs may assign zero risk weight for the guaranteed portion. The balance outstanding in excess of the guaranteed portion would attract a risk-weight as per extant guidelines.

ii) Provisioning: In case the advance covered by CRGFTLIH guarantee becomes non-performing, no provision need be made towards the guaranteed portion. The amount outstanding in excess of the guaranteed portion should be provided for as per the extant guidelines on provisioning for non-performing advances.

The CRGFTLIH has been set up by the Ministry of Housing & Urban Poverty Alleviation, Government of India for the purpose of providing guarantee in respect of low income housing loans.

Implementing Capital Regulations for OTC Derivatives and CCPs

It has been decided to implement the credit valuation adjustment (CVA) risk capital charge on Over-the-Counter (OTC) derivatives from April 1, 2014, instead of January 1, 2014. The guidelines on capital requirements for banks’ exposures to central counterparties (CCPs) will become effective from January 1, 2014.

Prudential Norms for Credit Card Accounts

In order to bring in consistency and to induce transparency, the Reserve Bank has advised that a credit card account will be treated as non-performing asset if the minimum amount due, as mentioned in the statement, is not paid fully within 90 days from the next statement date. The gap between two statements should not be more than a month. Banks should follow this uniform method of determining over-due status for credit card accounts while reporting to credit information companies and for the purpose of levying of penal charges, namely, late payment charges, if any.

Incremental Provisioning and Capital for Unhedged Foreign Currency Exposures

The Reserve Bank has introduced incremental provisioning and capital requirements for bank exposures to entities with unhedged foreign currency exposures. The guidelines have been framed keeping in view the domestic borrowers’ vulnerability to the foreign currency exposure. The framework also considers currency induced credit risk for exposures of overseas branches and foreign subsidiaries.

and foreign subsidiaries.

Likely Loss/ EBID (%)	Incremental Provisioning Requirement on the total credit exposures over and above extant standard asset provisioning	Incremental Capital Requirement
Upto15 per cent	0	0
More than 15 per cent and upto 30 per cent	20bps	0
More than 30 per cent and upto 50 per cent	40bps	0
More than 50 percent and upto 75 per cent	60bps	0
More than 75 per cent	80 bps	25 per cent increase in the risk weight

The framework may be implemented from April 1, 2014.

Background

Unhedged foreign currency exposures of the entities are an area of concern not only for individual entity but also to the entire financial system; entities which do not hedge their foreign currency exposures can incur significant losses due to exchange rate movements. These losses may reduce their capacity to service the loans taken from the banking system and affect the health of the banking system. The Reserve Bank has issued various guidelines advising banks to closely monitor the unhedged foreign currency exposures of their borrowing clients and also factor this risk into the pricing. However, the extent of unhedged foreign currency exposures of the entities continues to be significant and this can increase the probability of default in times of high currency volatility.

 FEMA

ODI – Rollover of Guarantees

It has been decided that in the case of Foreign Direct Investment (ODI) not to treat/reckon the renewal/rollover of an existing/original guarantee, which is part of the total financial commitment of the Indian party in terms of Regulation 6 of the Notification No. FEMA.120/RB-2004 dated July 7, 2004, as a fresh financial commitment, provided that:

a. The existing/original guarantee was issued in terms of the then extant/prevailing FEMA guidelines.

b. There is no change in the end use of the guarantee, i.e., the facilities availed by the JV/WOS/Step Down Subsidiary;

c. There is no change in any of the terms & conditions, including the amount of the guarantee except the validity period;

d. The reporting of the rolled over guarantee would be done as a fresh financial commitment in Part II of Form ODI, as hitherto; and

e. If the Indian party is under investigation by any investigation/ enforcement agency or regulatory body, the concerned agency/body shall be kept informed about the same.

In case, however, the above conditions are not met, the Indian party shall obtain prior approval of the Reserve Bank for rollover/renewal of the existing guarantee through the designated AD bank.

Issue of Non Convertible/ Redeemable Bonus Preference Shares or Debentures - Clarifications

It has been decided that an Indian company may issue non-convertible/redeemable preference shares or debentures to non-resident shareholders, including the depositories that act as trustees for the ADR/GDR holders, by way of distribution as bonus from its general reserves under a Scheme of Arrangement approved by a Court in India under the provisions of the Companies Act, as applicable, subject to no-objection from the Income Tax Authorities. This has been done with a view to rationalising and simplifying the procedures for issue of non-convertible/redeemable bonus preference shares or debentures to non-resident shareholders from the general reserve under a Scheme of Arrangement by a Court, under the provisions of the Companies Act, as applicable.

This general permission to Indian companies is, however, only for issue of non-convertible/redeemable preference shares or debentures to non-resident shareholders by way of distribution as bonus from the general reserves. The issue of preference shares (excluding non-convertible/redeemable preference shares) and convertible debentures (excluding optionally convertible/partially convertible debentures) under the FDI scheme would continue to be subject to A.P. (DIR Series) Circular Nos.73 and 74 dated June 8, 2007 as hitherto.

MRO to be part of Airport Infrastructure for ECBs

On a review, it has been decided that, for the purpose of External Commercial Borrowings (ECB), ‘Maintenance, Repairs and Overhaul’ (MRO) will also be treated as a part of airport infrastructure. Accordingly, MRO, as distinct from the related services which are other than infrastructure, will be considered as part of the sub-sector of airport in the Transport Sector of infrastructure. All other aspects of ECB policy shall remain unchanged.

Import of Gold by Nominated Entities

In consultation with the Government of India, it has been decided to issue the following clarifications on import of gold by nominated banks/agencies/entities:

a. Refineries are allowed to import dore up to 15% of their gross average viable quantity based on their licence entitlement in the first two months for making this available to the exporters on First in First out (FIFO) basis. Subsequent to this, the quantum of gold dore to be imported should be determined lot-wise on the basis of export performance.

b. Before the next import, not more than 80% shall be allowed to be sold domestically.

c. The dore so imported shall be refined and shall be released based on FIFO basis following 20:80 principle. This would be monitored by CBEC as earlier.

d. The imports, thereafter, shall be allowed only up to 5 times the quantum for which proof of export has been submitted. This shall be on accrual basis.

The instructions have come into effect immediately.

Residents can on-lend Rupees borrowed from Resident Outside India

A person resident in India who had borrowed in Rupees from a person resident outside India was restricted under current FEMA regulations from using such borrowed funds for any investment, whether by way of capital or otherwise, in any company or partnership firm or proprietorship concern or any entity, whether incorporated or not, or for relending.

On a review, such resident entities / companies in India, authorised by the Government of India, to issue tax-free, secured, redeemable, non-convertible bonds in Rupees to persons resident outside India have been permitted to use such borrowed funds for:

(a) on lending / re-lending to the infrastructure sector; and

(b) keeping in fixed deposits with banks in India pending utilization by them for permissible end-uses.

Revised Guidelines for Merchanting Trade Transactions

The Reserve Bank of India has revised guidelines on Merchanting Trade Transactions. The earlier guidelines on the subject were issued in 2003. Merchanting or Intermediary Trade involves purchase of goods by Indian residents from non-residents and then reselling them to another non-resident directly without the goods touching the Indian ports. Although the merchanting trade transactions do not contribute to the exports from India, they result in net foreign exchange inflows. The Technical Committee on Services / Facilities to exporters (Chairman: Shri G. Padmanabhan) in its report (May 2013) recommended that the procedure be simplified.

Under the revised guidelines, total period of merchanting trade has been extended from six months to nine months and short term financing for both export and import leg has been enabled. Half yearly reporting of outstanding merchanting trade by AD Banks has also been prescribed to ensure better monitoring.

Committee on Comprehensive Financial Services for Small Business and Low Income Households

The Reserve Bank of India released on its website for public comments, the Report of the Committee on Comprehensive Financial Services for Small Business and Low Income Households. The Reserve Bank of India had, in September 2013, set up a Committee on Comprehensive Financial Services for Small Business and Low Income Households, under the Chairmanship of Dr. Nachiket Mor, Member on the Reserve Bank’s Central Board of Directors.

Vision

The Committee, while laying down its vision statement for financial inclusion and deepening, has suggested providing a universal bank account to all Indians above the age of eighteen years and has recommended a Vertically Differentiated Banking System with Payments Banks for Deposits & Payments and Wholesale Banks for credit outreach with relaxed entry point norms of ` 50 crore.

Priority Sector Lending

On priority sector, the Committee has recommended Adjusted Priority Sector Lending Target of 50 per cent against the current requirement of 40 per cent with sectoral and regional weightages based on the level of difficulty in lending. The Committee has also recommended risks and liquidity transfers through markets. In view of the fact that banks may choose to focus their priority sector strategies on different customer segments and asset classes, the Committee has recommended that the regulator provide specific guidance on differential provisioning norms at the level of each asset class. A bank’s overall Non Performing Assets Coverage Ratio would therefore be a function of its overall portfolio asset mix.

Definition of NBFCs

On definition of Non-Banking Finance Companies (NBFCs), the Committee has recommended only two categories - one for core investment companies and another category for all other NBFCs. The Committee has advocated regulatory convergence between banks and NBFCs based on the principle of neutrality with regard to classification of non-performing assets and the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 eligibility.

State Level Regulators

The Committee has suggested that a State Finance Regulatory Commission (SFRC) be created into which all the existing State Government-level regulators could be merged and functions like the regulation of Non-Government Organisations- Micro Finance Institutions (NGO-MFIs) and local Money Services Business could be added on. The Committee has desired that the Reserve Bank should issue regulations on suitability, applicable specifically for individuals and small businesses, to all regulated entities within its purview so that the violation of such regulations would result in penal action for the institution as contemplated

under the relevant statutes through a variety of measures, including fines, cease-and-desist orders, and modification and cancellation of licences.

Committee on Financial Benchmarks

The Reserve Bank of India has placed on its website, the ‘Draft Report of the Committee on Financial Benchmarks’ for public comments. The Reserve Bank had announced the constitution of the Committee on Financial Benchmarks under Chairmanship of Shri P. Vijaya Bhaskar, Executive Director on June 28, 2013 with a mandate to study various issues relating to financial benchmarks in India and to submit the Report by December 31, 2013.

In the aftermath of the revelations regarding manipulations of several key global benchmark rates, viz. LIBOR, EURIBOR, TIBOR, etc., several international standard setting bodies, national regulators, and self-regulatory market bodies have reviewed the benchmark setting processes and came out with wide ranging reform measures and governing principles for enhancing the robustness and reliability of the financial benchmarks. The IOSCO has released its final report on Principles for Financial Benchmarks in July 2013. The FSB, working under the mandate of G-20, has endorsed the IOSCO’s Principles. The Benchmark Administrators are required to disclose their compliance with the IOSCO Principles by July 2014.

The Report of the Committee provides a brief overview of the measures recommended by various international bodies/ committees and the reforms already undertaken/underway in key benchmarks in various jurisdictions. Building on the cross-country experiences, the Report provides an in-depth analysis of the existing benchmark setting methodology and governance framework of the major Indian Rupee interest rate benchmarks and foreign exchange benchmarks. While the existing system was found generally satisfactory, the Report recommends several measures/principles to be followed to strengthen the benchmark quality, setting methodology and governance framework of the Benchmark Administrators, Calculation Agents and Submitters. In line with the international move towards greater regulatory oversight of the benchmark setting process, the Report reviews the existing regulatory powers of RBI over the financial benchmarks and recommends suitable amendments of the RBI Act, as a long term measure, to explicitly empower RBI to determine policy with regard to benchmarks used in Money, G-sec, Credit and Foreign Exchange markets in India and to issue binding directions to all the agencies involved in the benchmark setting. Pending the amendments, the Report recommends appropriate regulatory and supervisory framework to be put in place by RBI for the above financial benchmarks under its existing statutory powers.

RBI NEWS FEBRUARY 2014

T he Reserve Bank, on February 11, 2014, issued guidelines
on Intra-Group Transactions and Exposures (ITEs) for banks.
The guidelines are exclusively meant for banks’ transactions and
exposures to entities belonging to the bank’s own group (group
entities). The guidelines contain quantitative limits on financial
ITEs and prudential measures for the non-financial ITEs to
ensure that banks engage in ITEs in a safe and sound manner
in order to contain concentration and contagion risks arising out
of ITEs. These measures are aimed at ensuring that banks, at
all times, maintain arm’s length relationship in dealings with their
own group entities, meet minimum requirements with respect to
group risk management and group-wide oversight, and adhere to
prudential limits on intra-group exposures.
The guidelines will become effective from October 1, 2014.
Banks should accordingly submit data on intra-group exposures
to the Reserve Bank (Department of Banking Supervision, Central
Office), from the quarter ending December 31, 2014.
In case a bank’s current intra-group exposure is more than
the limits stipulated in the guidelines, it should bring down the
exposure within the limits at the earliest but not later than March
31, 2016. The exposure beyond permissible limits subsequent to
March 31, 2016, if any, would be deducted from Common Equity
Tier 1 capital of the bank.
The Reserve Bank may review the guidelines as and when
guidance on ITEs is issued by the Basel Committee on Banking
Supervision.
Guidelines on Management of
Intra-Group Transactions and Exposures
FEMA
Import of Gold/Gold Dore - Clarifications
The Reserve Bank has issued the following clarifications on
Advance Authorisation (AA)/Duty Free Import Authorisation (DFIA)
which come into force with immediate effect:
a) In case of AA/DFIA issued before August 14, 2013, the
condition of sequencing imports prior to exports shall not
be insisted upon even in case of entities/units in the Special
Economic Zone and Export Oriented Units, Premier and Star
Trading Houses.
b) The imports made as part of the AA/DFIA scheme will be
outside the purview of the 20:80 scheme. Such Imports will
be accounted for separately and will not entitle the Nominated
Agency/ Banks/Entities for any further import.
c) The Nominated Banks/Agencies/Entities may make available
gold to the exporters (other than AA/DFIA holders) operating
under the Replenishment Scheme. They can resort to import
of gold for the purpose, if considered necessary. However,
such import will be accounted for separately and will not
entitle them for any further import.
d) Import of gold in the third lot onwards will be lesser of the two:
i. Five times the export for which proof has been
submitted; or
ii. Quantity of gold permitted to a Nominated Agency in
the first or second lot.
2 Monetary and Credit Information Review, February 2014
Further with reference to import of Gold Dore, the Reserve
Bank has clarified that:
i) The refiners can import Gold Dore of 15% of their
licence for each of the first two months.
ii) In case, the quantity has already been identified by
Director General of Foreign Trade (DGFT) for first two
lots, import of such quantity will be in compliance with
the guidelines issued on December 31, 2013 in this
regard.
iii) DGFT, through a notification, may include new refiners,
and fix licence quantity for them.
Limits for G-sec Investments for SEBIregistered
Long Term Investors doubled
The existing sub-limit of USD 5 billion available to Long term
investors registered with SEBI - Sovereign Wealth Funds (SWFs),
Multilateral Agencies, Pension/Insurance/Endowment Funds and
Foreign Central Banks - for investment in Government dated
securities has been enhanced to USD 10 billion. This would,
however, be within the total limit of USD 30 billion available to
them for foreign investments in Government securities. The limit
so far was USD 5 billion. The decision, which has taken effect
immediately, has been taken to enhance the limit on a review in
consultation with Government of India.
Limits for Investment in Corporate Debt reduced
Foreign Institutional Investors, Qualified Financial Institutions
and long term investors registered with SEBI, such as, Sovereign
Wealth Funds (SWFs), Multilateral Agencies, Pension/Insurance/
Endowment Funds, Foreign Central Banks, can now invest only
upto USD 2 billion in commercial paper. The sub-limit has been
reduced from USD 3.5 billion with immediate effect.
Applicable Interest on FCNR(B)/NRE Deposits from March 1
It has been decided that interest rate ceilings on Foreign
Currency Non-Resident (B) deposits for maturity period of one
year to less than three years and three to five years, respectively
will continue till February 28, 2014. They will revert to the ceiling
prior to August 14, 2013, as under:
Maturity Period Existing From March 1,
2014
1 year to less than
3 years
LIBOR/Swap plus
200 basis points
No change
3-5 years LIBOR/Swap plus
400 basis points
LIBOR/SWAP plus
300 basis points
All other instructions in this regard, as amended from time
to time, will remain unchanged.
It has been also been decided that the freedom to offer
interest rates on incremental deposits with maturity of 3 years
and above without any ceiling be extended till February 28,
2014. With effect from March 1, 2014, the interest rate ceiling
will also revert to the position prior to August 14, 2013. That is,
banks cannot offer higher interest rates on NRE deposits than
what they offer on comparable domestic rupee deposits. All other
instructions in this regard, as amended from time to time, will
remain unchanged.
FCNR(B)/NRE Deposits and Exemptions from CRR/SLR
It has been decided that the exemption granted on
incremental Foreign Currency Non-Resident (B)/Non Resident
(External) deposits from maintenance of Cash Reserve Ratio
(CRR)/Statutory Liquidity Ratio (SLR) will be withdrawn with
effect from reporting fortnight beginning March 8, 2014. From
this date, only the eligible amount of incremental FCNR(B) and
NRE deposits of maturities of three years and above from the
base date of July 26, 2013, and outstanding as on March 7,
2014, would qualify for CRR/SLR exemption till their maturities/
pre-mature withdrawals.
Further, for computation of priority sector lending targets,
advances extended in India against the incremental FCNR(B)/
NRE deposits qualifying for exemption from CRR/SLR
requirements, will be eligible for exclusion from Adjusted Net
Bank Credit (ANBC) till their repayment.
NBFCs
RBI eases Pricing of Credit Directions for NBFC-MFIs
It has been decided that the interest rates charged by an
NBFC-MFI to its borrowers will be the lower of the following:
(i) The cost of funds plus margin, or
(ii) The average base rate of the five largest commercial banks
by assets multiplied by 2.75.
The average of the base rates of the five largest commercial
banks shall be advised by the Reserve Bank on the last working
day of the previous quarter, which shall determine interest rates
for the ensuing quarter.
The above instructions will come into effect from the quarter
beginning April 01, 2014. The Reserve Bank will announce the
applicable average base rate on March 31, 2014 and every
quarter end thereafter.
Other
Withdrawal of Old Series of Banknotes issued
prior to 2005
The Reserve Bank of India has clarified that the rationale
behind its move to withdraw banknotes printed prior to 2005 is
to remove these banknotes from the market because they have
fewer security features compared to banknotes printed after 2005.
It is standard international practice to withdraw old series notes.
The Reserve Bank has already been withdrawing these
bank notes from the market in a routine manner through banks.
In Reserve Bank’s view, the volume of the banknotes printed
prior to 2005 today, still in circulation, is not significant enough to
impact the general public in a large way.
However, it has advised members of public to start
exchanging these notes at bank branches at their convenience.
Further, even July 1, 2014 onwards, members of public can
exchange any number of these old series notes from the bank
branches where they have their accounts.
The Reserve Bank has assured that it would continue to
monitor and review the process of withdrawal of old series notes
so that the public is not inconvenienced in any manner.
Regardless of the above, the Reserve Bank has reiterated
that the notes printed prior to 2005 would continue to be
legal tender.
Monetary and Credit Information Review, February 2014 3
The Reserve Bank of India announced the Third Quarter
Review of the Monetary Policy Statement 2013-14 on January
28, 2014.
On the basis of an assessment of the current and evolving
macroeconomic situation, the following policy actions were
taken:
• policy repo rate under the liquidity adjustment facility (LAF)
increased by 25 basis points - from 7.75 per cent to 8.00
per cent; and
• cash reserve ratio (CRR) of scheduled banks kept
unchanged at 4.0 per cent of net demand and time liability
(NDTL).
Consequently, the reverse repo rate under the LAF stands
at 7.0 per cent, and the marginal standing facility (MSF) rate as
well as the Bank Rate at 9.0 per cent.
Third Quarter Monetary Policy Review
Expert Committee to Revise and Strengthen the
Monetary Policy Framework
The Expert Committee to Revise and Strengthen the
Monetary Policy Framework submitted its report to the Governor
on January 21, 2014. The Expert Committee was appointed
on September 12, 2013 by Dr. Raghuram G Rajan. The main
objective of the Committee was to recommend what needs to
be done to revise and strengthen the current monetary policy
framework with a view to, inter alia, making it transparent and
predictable.
Highlights of Recommendations
(1) Inflation should be the nominal anchor for the monetary
policy framework. This nominal anchor should be set by the
Reserve Bank as its predominant objective of monetary policy
in its policy statements.
(2) The Reserve Bank should adopt the new CPI (combined) as
the measure of the nominal anchor for policy communication.
The nominal anchor should be defined in terms of headline
CPI inflation, which closely reflects the cost of living and
influences inflation expectations relative to other available
metrics.
(3) The nominal anchor or the target for inflation should be set at
4 per cent with a band of +/- 2 per cent around it (a) in view
of the vulnerability of the Indian economy to supply/external
shocks and the relatively large weight of food in the CPI;
and (b) the need to avoid a deflation bias in the conduct of
monetary policy.
(4) In view of the elevated level of current CPI inflation and
hardened inflation expectations, supply constraints and
weak output performance, the transition path to the target
zone should be graduated to bringing down inflation from the
current level of 10 per cent to 8 per cent over a period not
exceeding the next 12 months and to 6 per cent over a period
not exceeding the next 24 month period before formally
adopting the recommended target of 4 per cent inflation with
a band of +/- 2 per cent. The Committee is also of the view
that this transition path should be clearly communicated to
the public.
Reports (5) Since food and fuel account for more than 57 per cent of
the CPI on which the direct influence of monetary policy is
limited, the commitment to the nominal anchor would need
to be demonstrated by timely monetary policy response to
risks from second round effects and inflation expectations in
response to shocks to food and fuel.
(6) Monetary policy decision-making should be vested in a
monetary policy committee (MPC).
(7) As an overarching prerequisite, the operating framework
has to subserve stance and objectives of monetary policy.
Accordingly, it must be redesigned around the central premise
of a policy rule.
(8) A phased refinement of the operating framework is necessary
to make it consistent with the conduct of monetary policy
geared towards the establishment and achievement of the
nominal anchor.
(9) To support the operating framework, the Committee
recommends that some new instruments be added to the
toolkit of monetary policy.
Committee on Financial Benchmarks
The Reserve Bank of India released the Report of the
Committee on Financial Benchmarks on February 7, 2014. The
Reserve Bank had announced the constitution of the Committee
on Financial Benchmarks (Chairman: Shri P. Vijaya Bhaskar,
Executive Director) on June 28, 2013 with a mandate to study
various issues relating to financial benchmarks in India and to
submit the Report by December 31, 2013. The Draft Report of
the Committee was placed on Reserve Bank website on January
3, 2014 for public comments. The Committee has finalised its
report after taking into account the feedback received from market
participants and other stakeholders.
Highlights of Recommendations
• FIMMDA and FEDAI may be designated as administrators for
all the Rupee interest rate and foreign exchange benchmarks
respectively, with primary responsibility for the entire
benchmark setting process;
• The benchmark calculation may be based on observable
transactions, wherever available, as first layer of inputs subject
to appropriate threshold criteria. The executable bids and
offers, wherever available, subject to appropriate threshold
and polled submissions may be used as second and third
layer of inputs respectively in terms of hierarchy of inputs;
• The Benchmark Administrator may publicly disclose individual
submissions after a suitable lag;
• The Administrators may periodically review each benchmark
and undertake necessary changes;
• New benchmarks may be registered with the concerned
Administrator before being introduced in the market;
• Credible contingency provision may be put in place and there
should be written policies and procedure to handle possible
cessation of a benchmark;
• Overnight MIBID-MIBOR setting may be shifted from existing
polling method to volume weighted average of trades
executed between 9 AM to 10 AM on NDS-CALL operated
by CCIL;
• FIMMDA may coordinate the transition of legacy contracts
referenced to NSE MIBID-MIBOR through multilateral and
bilateral amendment agreement, as appropriate;
Edited and published by Alpana Killawala for the Reserve Bank of India, Department of Communication, Central Office, Shahid Bhagat Singh
Marg, Mumbai - 400 001 and printed by her at Onlooker Press, 16, Sassoon Dock, Colaba, Mumbai - 400 005.
For renewal and change of address please write to the Chief General Manager, Department of Communication, Reserve Bank of
India, Central Office Building, 12th floor, Fort, Mumbai - 400 001 without enclosing DD/cheque. MCIR is also available on
Internet at www.mcir.rbi.org.in
Monthly Subscription : ` 1. 4 Monetary and Credit Information Review, February 2014
Published on 26th day of the month Posted at MUMBAI PATRIKA CHANNEL SORTING OFFICE - on last two working days of every month. Regd. No. MH/MR/South-30/2012-14
• Construction of the G-sec yield curve may use volume
weighted average rate of the trades executed over longer
time window in place of last traded yields;
• Transaction data may be used for calculation of INBMK, T-Bill,
CP, and CD Curves as the first layer of data inputs;
• The threshold trades/bids and offers specified for setting
of G-sec yield curve, spread for FRBs, prices of SDL and
corporate bonds may be subjected to periodic resetting at a
well-defined time intervals, for keeping them at reasonably
higher level taking into account the overall liquidity and
developments in the respective market segments. In the
absence of required trading volume in SDL, the spread
discovered in the last two SDL auctions, subject to
appropriate qualifying criteria, may be used in place of
existing fixed 25bps spread;
• The Reserve Bank may continue with the existing system
of fixation of Reference Rates, keeping in view the recent
international moves where the official sector is assuming
greater role in fixation of financial benchmarks and also
the fact that several central banks in developed as well as
emerging economies publish such reference rates;
• Reserve Bank reference rates may be based on volume
weighted average of actual transactions executed during a
sufficiently longer time window in place of existing polling
method;
• The benchmark/benchmark tenors that are not used in
the interbank/PD transactions may be phased-out subject
to FIMMDA ascertaining the extent of outstanding client
transactions referenced to those benchmarks/benchmark
tenors (MIFOR- 1-month, 2-month and 1-year; MITOR,
INBMK–all tenors except 1-year) and facilitate suitable
transition arrangements, if required;
• FEDAI may stop publishing spot fixings, if it is not used for
any meaningful purpose by corporates and other clients;
• Banks may strive to develop the USD/INR basis swaps and
USD/INR forwards (beyond 1 year) so as to obviate the need
to use MIFOR;
• MIOIS and MIOCS may be uniformly used for valuation of
outstanding OIS and MIFOR swap trades respectively.
Technical Committee on Mobile Banking
The Reserve Bank of India released, for public comments,
the “Report of the Technical Committee on Mobile Banking” on
February 7, 2014.
The Reserve Bank of India had, in October 2013, constituted
a Technical Committee on Mobile Banking under the chairmanship
of Shri B. Sambamurthy, Director, Institute for Development
and Research in Banking Technology, to examine the options/
alternatives including the feasibility of using encrypted SMS based
funds transfer using an application that can run on any type of
handset for expansion of mobile banking in the country.
The Committee, cognisant of the fact that the country
has a subscriber base of 870 million, around 450 million bank
accounts but only 22 million active mobile banking customers,
has attempted to identify the challenges faced by banks in filling
this gap. Mobile banking transaction is considered economical
and has capability of last mile delivery.
The Committee has identified the challenges faced
by the banks in providing mobile banking to customers in
general (customer enrolment and technical issues) and further
highlighted the challenges faced in providing SMS/Unstructured
Supplementary Service Data (USSD)/application based mobile
banking and recommended solutions for the same. The major
challenges identified are registration, M-PIN generation, concerns
related to security, bank staff training and customer education.
The report emphasises the need for a standardised and
simplified procedure for registration/authentication of customers
for mobile banking services, a cohesive awareness programme
to be put in place, adoption of common application platform
(with necessary level of security through encryption) across all
banks. The issuance of necessary guidelines by the Telecom
Regulatory Authority (TRAI) of India which has prescribed the
optimum service parameters as also ceiling on transactional cost
for extension of the USSD services by telecom operators to the
banks and their agents has been highlighted and the Committee
recommends that the implementation of the TRAI regulations
must be expedited by all the stakeholders.
Technical Committee on Enabling PKI in
Payment System
The Reserve Bank of India released, for public comments,
the Report of the Technical Committee on Enabling Public Key
Infrastructure (PKI) in Payment System Applications on February
7, 2014.
The Reserve Bank of India had, in September 2013,
constituted a group to prepare an approach paper for enabling
PKI for Payment Systems in India comprising members from
banks (State Bank of India and ICICI bank), Institute for
Development and Research in Banking Technology-Certifying
Authority (IDRBT-CA), Controller of Certifying Authority (CCA),
New Delhi and Reserve Bank of India [(Department of Technology
(DIT), Department of Payment and Settlement Systems (DPSS),
Department of Government and Bank Accounts (DGBA) - Core
Banking Solution (CBS) and Chief Information Security Officer
(CISO)].
Cognisant of the fact that non-PKI enabled payment
systems, such as, clearing (MICR/Non MICR), electronic credit
system, credit card and debit cards contributed 75 per cent in
volume terms but only 6.3 per cent in value terms in the year
2012-13, the Group has suggested that in order to ensure a
safe, secure payment system in the country and to ensure legal
compliance, digital technology, such as, PKI may be used.
The report also highlights, among other things, security
features in existing payment system applications and feasibility in
implementing PKI in all payments system applications. The Group
has also recommended that banks may carry out in phases PKI
implementation for authentication and transaction verification.

MARCH(1-18) 2014 CURRENT AFFAIRS

==Supreme Court on 27 March 2014 directed all the States and Union Territories to implement Prohibition of Employment as Manual Scavengers and their Rehabilitation Act, 2013.

The three-judge Bench comprised of Chief Justice P Sathasivam, Justice Ranjan Gogoi and Justice N V Ramana ordered a series of directions to abolish the practice of manual scavenging and to prevent future generations from this inhuman practice.  The Apex court also deprecated the practice of manually removing night soil with bare hands, brooms or metal scrappers.

Directions issued by Supreme Court
The Supreme Court issued a slew of directions for rehabilitation of those involved in manual scavenging by providing cash assistance, education and benefits of other social welfare scheme.

• At least one member of their family shall be given, subject to eligibility and willingness, training in livelihood skill and shall be paid a monthly stipend during rehabilitation period. Besides, one adult member of the family is given subsidy or concessional loan for taking up an alternative occupation.

FEB 2014 CURRENT AFFAIRS

1. Ibrahim Mahlab was sworn in as new Egypt Prime Minister.

2. Dinesh Sarraf appointed as next CMD of Oil and Natural Gas Corporation.

3. Harish Rawat was appointed as the 8th Chief Minister of Uttarakhand. He succeeded Vijay Bahuguna. Harish Rawat was a Union Minister for Water Resources.

4. Manoj Vaish took charge as the MD and CEO of Multi Commodity Exchange of India Ltd.

5. United Nation appointed India based Vivek Lall as special advisor on cyber security.

6. Poonam Khetrapal Singh took charge as the Regional Director of World Health Organisation South-East Asia Region.

7. Former Supreme Court Justice, Ashok Kumar Mathur was appointed as the Chairman of the 7th Pay Commission. Its recommendation would be implemented from 1 January 2016.

8. M Teresa kho was appointed as Asian Development Bank’s new Country Director for India.

9. Satya Nadella was appointed as CEO of Microsoft. Satya Nadella will succeed Steve Ballmer as the third CEO of the Microsoft firm. Bill Gates is the founder and first CEO of Microsoft. Nadella is the first Indian to head the Microsoft in its 38-year history.

10. WWF (World Wide Fund for Nature) appointed Marco Lambertini as Director-General of the WWF International.

11. Matteo Renzi sworn-in as Italy’s Prime Minister replacing Enrico Letta, who resigned from the office.

12. Pakistan appointed Abdul Basit as Pakistan’s high commissioner to India. He will replace Salman Bashir.

13. Justice Mukul Mudgal was appointed as the chief of the Broadcast Content Complaints Council (BCCC).

14. Vinod Sawhny was appointed as CEO of Reliance Communications.

15. Jatinder Bir Singh was appointed CMD of Punjab and Sind Bank.

16. R.K.Tiwari was appointed as the new chairman of Central Board of Direct Taxes.

17. N Ramachandran was elected President of Indian Olympic Association.

18. Chandi Prasad Bhatt, the noted Gandhian environmentalist and social activist won the Gandhi Peace Prize for the year 2013. Bhatt was one of the pioneers of the Chipko movement.

19. Angela Merkel, the German Chancellor was awarded with Israel’s highest civilian honour, the Israeli Presidential Medal of Distinction.

20. Killa, a Marathi film won the Crystal Bear (Glasernen Bar) for the best film award by the Children’s jury in Generation Kplus section at the 64th Berlin International Film Festival. The film has been directed by Avinash Arun.

21. Pranab Mukherjee, the President of India presented the International Gandhi Award for the year 2013 to Dr. Vijaykumar Vinayak Dongre (VV Dongre) and Prof. Guocheng Zhang.

22. The President of India, Pranab Mukherjee was conferred Award of Honour for the leadership he has provided and the India’s victory over Polio. The award was presented by Ron Burton, President of Rotary International.

23. Bangladesh’s Kamar Ahmad Simon’s documentary Are You Listening won the Golden Conch Award at the Mumbai International Film Festival for Documentary, Short and Animation Films.

24. Arunima Sinha received Amazing Indian Award. She was awarded for scaling Mount Everest despite being physically challenged.

25. Vishwanath Tripathi, the eminent Hindi writer has been selected for the prestigious Vyas Samman for the year 2013. He has been chosen for his memoir 'Vyomkesh Darvesh' that is a biography of the noted Hindi scholar Acharya Hazari Prasad Dwivedi.

26. Malala Yousafzai was nominated for the World Children’s Prize in Sweden for championing education rights for girls.

27. Bharat Ratna, the highest civilian honour was conferred on cricket maestro Sachin Tendulkar and eminent scientist Prof CNR Rao by the President of India. Sachin became the first youngest and sportsperson to be conferred with the honour of Bharat Ratna. Prof CNR Rao (Chintamani Nagesa Ramachandra Rao) is the third scientist who has been conferred with the award. He received the

honour after CV Raman andAPJ Abdul Kalam, the former President of India. Rao is recognized international authority on solid state and materials chemistry.

28. Nathpa Jhakri Hydro Power Station awarded a gold shield for its meritorious performance in 2013-14.

29. Indian Navy Chief Admiral Devendra Kumar Joshi resigned taking moral responsibility of the accident on INS Sindhuratna in Mumbai.

30. Rishang Keishing the oldest Parliamentarian of India decided to retire. He is 94. He joined politics as the member of the first Lok Sabha in 1952 after being elected from Socialist Party. He had served the nation for seven decades. He joined Congress in 1962.

31. Archana Bhargava CMD of the Kolkata-based United Bank of India resigned.

32. Andhra Pradesh Chief Minister Kiran Kumar Reddy resigned from the post. He also quitted from the membership of the State Assembly and the Congress Party as a protest to the decision to bifurcate the Andhra Pradesh State.

33. The Telangana Bill, splitting Andhra Pradesh and forming Telangana as 29th State was passed by the Lok Sabha on 18 February 2014 with Congress and BJP coming together on the issue. The Bill will be passed in Rajya Sabha on 19 February 2014.

34. Italy Prime Minister Enrico Letta resigned.

35. Arvind Kejriwal, the Chief Minister of Delhi resigned. He resigned following his government failure to muster the support over whether the Jan Lokpal Bill should be presented before the House or not. 42 MLAs voted against the bill whereas only 27 members favoured it.

36. Vijay Bahuguna, the Chief Minister of Uttrakhand submitted his resignation to the Governor.

37. Hamid Ansari, the Vice President of India released a commemorative postage stamp in the honour of Maulana Hasrat Mohani who was a freedom fighter and an eminent poet.

38. The Parliament of Nepal elected Sushil Koirala as next Prime Minister of Nepal. Sushil Koirala is a veteran Nepali Congress leader.

 39. President of Israel Shimon Peres set a new Guinness World Record. He delivered the largest online civics class in the world.

40. President of Zanzibar, Dr. Ali Mohamed Shein is on an official visit to India from 1 to 9 February 2014.

41. Save the Children, UK-based NGO released a Report that claimed India alone accounts for a 29 percent of the global deaths of newborns on their very first day of birth.

42. India was ranked 8th in the list of ten countries in terms of digital governance. The list was topped by Singapore.

43. G-4 Director Generals for UNSC reform met on 11 February 2014 in New Delhi. G-4 members are Brazil, Germany, India and Japan.

44. The World famous Khajuraho Dance Festival began at Khajuraho, Madhya Pradesh. The Dance Festival will be celebrated from 20 to 26 February 2014.

45. 103 persons were killed in Algeria when a military aircraft C-130 Hercules crashed in the mountains of Algeria.

46. India successfully test-fired indigenously developed surface-to-air Akash Missile with a range of 30 Km from the Integrated Test Range at Chandipur in Odisha coast. The missile that was launched targeted a floating object that was supported by Pilotless Target Aircraft (PTA) Lakshya.

47. Indian Navy kicked off its largest exercise with both the western and eastern fleets in the Bay of Bengal for intensive combat maneuvers.

48. 8th Defence Expo was organized at Pragati Maidan in New Delhi from 6 February 2014 to 9 February 2014.

49. Defence Research and Development Organization said that it is in the process of developing Unmanned Arial Vehicles to track down Maoists in naxal hit states including Jharkhand and Chhattisgarh. The vehicles will be used by the Central Reserve Police Force to track the locations of the Maoists in even the forests.

50. Central Government constituted one-man expert committee headed by G K Pillai to examine the demand of a separate Bodoland state, which will be carved out from Assam.

51. Union Cabinet approved the setting up of an Equal Opportunities Commission. The proposal for EOC was made by the Union Ministry of Minority Affairs on the recommendations of the Justice Sachar Committee on Social, Economic and Educational Status of Muslim Community in India.

52. The speaker of Lok Sabha, Meria Kumar referred the pepper spray incident in the Lok Sabha to the Privileges Committee. The 15 member Committee headed by senior Congress leader P C Chacko has power to take punitive measures.

53. A music album entitled Raunaq based on the songs composed by music maestro AR Rahman and written by Kapil Sibal was launched.

54. Prime Minister of India inaugurated Indira Paryavaran Bhawan in New Delhi. This Bhawan will house the Ministry of Environment and Forest and is India’s first on site Net Zero Building built by the adoption of Solar Passive design and energy efficient building material.

55. IRCTC launched E-Wallet Scheme in the second week of February 2014. The scheme was launched to make payment process fast and to reduce transaction failures due to bank payment related problems.

56. The G-20 Meeting of Finance Ministers and Central Bank Governors held at Sydney, Australia. The official theme of the meeting is restoring global growth. The G20 nations set the target to increase global growth by at least two percentage points over the next five years that is by 2019. The annual G20 summit will be held in November 2014 in Brisbane.

57. Corporate social responsibility will take effect from 1 April, under which Indian companies and foreign companies registered in India would need to spend a minimum 2 per cent of net profit for the benefit of the society. They will apply to companies with at least Rs 5 crore net profit, or Rs.1,000 crore turnover or Rs.500 crore net worth.

58. Japan-based Mt Gox, which was the world's largest bitcoin exchange filed for bankruptcy. Mt Gox has admitted to have lost 7.5 lakh bitcoins of its customers and one lakh of its own.

59. India is home to the fifth largest group of billionaires in the world and Mukesh Ambani is the country's richest man with a personal fortune of USD 18 billion. According China-based research firm Hurun's 2014 global rich list, Mukesh Ambani was ranked 41st in the list that was topped by Bill Gates with USD 68 billion.

60. India is the second-most cyber attacks on mobile devices prone country with a major chunk of these intrusions designed for phishing and stealing banking details, a report by security software maker Kaspersky said. Russia topped the list.

61. Government increased the workdays under MNREGA from 100 to 150 for tribals from 1 April. Those tribals who have received land rights under the Forest Rights Act, 2006 will be eligible for additional 50 days of wage employment.

62. India's GDP growth rate fell under expectations at 4.7 per cent in October-December. GDP had expanded 4.8 per cent in the July-September quarter and 4.4 per cent in April-June. Growth in the first nine months (April-December) was 4.6 per cent.

63. G-20 members in Sydney meeting agreed to start automatic sharing of tax information by end 2015.

64. India's Current Account Deficit (CAD) is expected to be around two per cent of GDP during the current fiscal, Prime Minister's Economic Advisory Council (PMEAC) Chairman C Rangarajan has said. Finance Minister P Chidambaram had said while tabling the interim budget that CAD will be contained at USD 45 billion this financial year, well below the USD 88 billion level in FY'13.

65. IMF estimated India's GDP growth at 4.6% for FY14 and at 5.4% for FY15.

66. The government cleared Rs 6,400 crore FDI proposal of global healthcare company GlaxoSmithKline to acquire additional 24.33 per cent stake in its India arm.

67. Chief Minister Narendra Modi's Gujarat is all set to have a World Trade Centre at Gandhinagar.

68. Government said there is a noticeable decline in below poverty line population in the country between 2004 and 2012. Percentage of population below poverty line in urban areas has declined from 25.5 per cent in 2004-05 to 13.7 per cent 2011-12.

69. Remittances from overseas Indians touched USD 67.6 billion in 2012-13, up from USD 66.1 billion the previous fiscal.

70. Connaught Place in Delhi slipped four notches to become the world's eighth most expensive office location as rentals, said property consultant Cushman & Wakefield. London’s West End emerged as the world's most expensive office market.

71. Here are the highlights of the vote on account 2014-

* Fiscal deficit for current fiscal to be 4.6%

* Revenue deficit estimated at 3% for current fiscal

* 140m people lifted out of poverty in last 10 years

* Excise duty on SUVs cut from 30 to 24%, in large and mid-segment cars from 27-24% to 24-20%

* Excise duty on small cars, motorcycles and commercial vehicles cut from 12% to 8%; appropriate cut to be done on chassis, trailers

* A Rs100 crore scheme formulated to promote community radio stations

* RBI must strike a balance between growth and moderating inflation

* We must focus on manufacturing, specially manufacturing for exports

* I am disappointed that we could not introduce GST

* No changes in tax laws in interim budget

* Government has obtained information in 67 cases of illegal offshore accounts of Indians

* Excise duty cut from 12 to 10 per cent in capital goods sector to stimulate growth

* Excise duty on mobile handset to be 6% on CENVAT credit to encourage domestic production

* Excise duty on small cars, motorcycles and SUVs reduced

* Service tax relief storage for warehousing for rice

* Blood banks to be exempt from service tax

* Rs 500crore estimated requirement for implementing one-rank-one-pay scheme for armed forces in 2014-15 with addition of 1300cr further.

* Rs 6000crore to rural housing fund, Rs 2000 crore for urban housing fund

* Minority bank accounts have swelled to 43,53,000 by 2013-14 from 14,15,000 bank accounts 10 years ago

* Rs 3711 crore for minority affairs; housing and urban poverty alleviation gets Rs 6000 crore

* Social justice ministry gets Rs 6730 crore; Panchayati Raj Ministry Rs 7000 crore

* Moratorium on interest on student loans taken before March 31, 2009; to benefit 9 lakh borrowers

* Public Debt Management Bill ready

* Fiscal deficit target of 3% to be achieved by 2017

* Fiscal deficit to be contained at 4.6% of GDP in 2013-14.

* CAD will be $45 billion in 2013-14

* Foreign exchange reserves up by $15 billion

* Foodgrain production estimated at 263 million tons in 2013-14

* Agriculture credit will cross $45 billion against $41 billion in 2012-13

* 296 projects worth Rs 6,60,000 crore cleared by Cabinet Committee on Investment by end January 2014

* Merchandise export to grow by 6.8% to $326 billion

* 3 more industrial corridors — Chennai-Bangalore, Bangalore-Mumbai, Amritsar-Kolkata — under various stages of implementation

* GDP growth rate in Q3 and Q4 of 2013-14 will be at least 5.2%

* Declining fiscal deficit, moderation of CAD, stable exchange rate and increase in project implementation result of hardwork

* Power capacity rises to 234,600 MW in 10 years

* Expenditure on education has risen from Rs 10,145 crore 10 years ago to Rs 79,251 crore this year

* Sugar decontrol, gradual correction of diesel prices, application for new bank licenses, sick electricity distribution companies restructured

* Average growth under UPA's ten year rule was 6.2 per cent against 5.9 during NDA period of 1999-2004

* Average growth under UPA-I was 8.4 per cent and UPA-II 6.6 per cent

* PSUs to achieve record capex of Rs 2,57,645 crore in 2013-14

* 500 MW fast breeder nuclear reaction in Kalpakkam to be ready shortly; 7 nuclear power reactors under construction

* National Solar Mission to undertake 4 ultra mega solar power projects in 2014-15

* Rs 1,200 crore additional assistance to N-E states to be released before end of the year

* Rs 1,000 crore grant for Nirbhaya Fund will be non-lapsable; another Rs 1,000 crore to be given next fiscal

* Rs 3,370 crore to transferred to 2.1 crore LPG users

* Govt committed to Aadhaar-based LPG transfer but scheme on hold temporarily

* Aadhaar is tool for empowerment

* Non-plan expenditure to exceed by a small amount in 2013-14

* 500 MW fast breeder test reactor in Kalpakkam to be ready shortly; 7 nuclear power reactors under construction

* Plan expenditure will be Rs 5,55,322 crore in 2014-15, unchanged from last fiscal

* Budgetary support to railways increased from Rs 26,000 crore to Rs 29,000 crore 2014-15

* Rs 2,46,397 crore allocated for food, fertilizer and fuel subsidy

* Food subsidy will be Rs 1,15,000 crore for implementation of National Food Security Act

* Defence allocation increased by 10 per cent to Rs 2.24 lakh crore

* Union Finance Minister P. Chidambaram said in his interim Budget speech that Rs.4,909 crore was being spent on modernisation of all 1.55 lakh post offices, and the project would be completed by 2015.

Railway Budget 2014: No fare hike, 17 new premium trains !

Presenting the Interim Rail Budget 2014 in Parliament today, Union Railway Minister Mallikarjun Kharge announced that 17 new premium trains and 38 express trains would be introduced. 

The Railway Minister has however kept both the passenger as well as the freight fares unchanged.

Mallikarjun Kharge is the second Railway Minister from Congress Party in the 10-year UPA regime to be presenting a Railway Budget, although interim. Earlier, under UPA-I regime Lalu Prasad from RJD had presented vote-on-account (interim budget) in 2009.

No increase in rail fare and freight has been proposed in the Interim Rail Budget for 2014-15. The Minister announced that there will be no more unmanned crossings. A Rail Tariff Authority has also been announced. A number of measures for safety and security of passengers like portable fire-extinguishers in coaches and induction-based cooking in pantry car have been proposed in the Budget.

Rail Budget 2014 Highlights

·         Passenger fares to remain unchanged

·         Leaves freight fares unchanged

·         Railway line from Kashmir to Kanyakumari

·         High time to take note of urgent needs of Railways

·         Seeks approval for spending first 4 months of FY'15

·         Funds to be provided for national projects

·         To start passenger service to Vaishnodevi-Katra shortly

·         Setting up of 11.2 km-long tunnel in J&K

·         Railways met extra expenditure through own means

·         Successfully met 6th pay panel recommendations

·         Extending rail connectivity to NE states

·         Electrification of over 4,000 kilomteres in plans

·         Railways has emerged stronger financially

·         Extra expenses met through internal accruals

·         Dedicated freight corridor to cut transit time by half

·         Completed laying 2,027 kms railway lines vs target 2,000 kms

·         Railways helps cause of national integration

·         To introduce 17 new premium trains and 38 express trains

·         Railways help provide low cost connectivity

·         Banihal link a big boon

·         Railways has met 6th pay panel recommendations

·         Dedicated freight lines to be commissioned

·         Completed doubling gauge of 2,227 kms vs target of 2,000 kms

·         Completed electrification of 4,556 kms vs target of 4,500 kms

·         Railways to have more passenger trains at higher speed

·         Need budgetary resources of Rs 19,805 crore for FY15

·         Rail Vikas Nigam to borrow Rs 1,000 crore from market in FY15

·         FY15 gross traffic receipts seen at Rs 1.16 lakh crore

76. India's exports are expected to grow by 6.3 per cent to USD 326 billion during the current fiscal.

77. Finance Minister P Chidambaram allocated an additional Rs 1,000 crore to the Nirbhaya Fund for the safety and empowerment of women. In January, the Cabinet Committee on Economic Affairs approved a Rs 1,405-crore project to track and monitor public transport. The project involves setting up closed-circuit television (CCTVs) and GPS in public transport vehicles. The government set a deadline of February 20, 2014.

78. Finance Minister P. Chidambaram while presenting Budget 2014 said the fiscal deficit for the current financial year will be contained at 4.6 per cent of GDP.

79. Wholesale Price Index inflation in January eased to an eight-month low of 5.05 per cent, helped by a moderation in food prices.

80. The central board of trustees (CBT) of the Employees’ Provident Fund Organisation endorsed a comprehensive amendment to the EPF Act to hike the wage ceiling for mandatory PF coverage to R15,000 per month from R6,500 and guarantee a minimum pension of R1,000 per month.

81. The number of poor in the country declined to 27 crore in 2011-12, from 40.74 crore in 2004-05. As per the estimates, Uttar Pradesh had the highest number of poor people living below the poverty line at 5.98 crore in 2011-12, followed by Bihar at 3.58 crore.

82. The Bimal Jalan panel, which scrutinised applications for new bank licences submitted its report along with shortlisted entities to the Reserve Bank of India. The last day for applications was July 1. The RBI received 27 applications and subsequently, Tata Sons Ltd and Value Industries Ltd withdrew. At present India have 27 public sector banks, 22 private sector banks and 56 regional rural banks.

83. RBI has given in-principle approval to setting up of a new payment system that will facilitate fund transfers from bank account holders to those without accounts through automated teller machines (ATMs).

84. Several small and mid-size public sector banks (PSBs) are expected to face capital adequacy trouble in the near future as bad loans surge and profits fall. In the December quarter, United Bank posted a net loss of Rs 1,238.08 crore. The bank's net worth declined and its capital adequacy ratio (CAR) fell to a little over 9%.

85. RBI has removed the 26% cap on the interest rate that a microfinance company can charge its borrowers. RBI has said that MFIs can arrive at their lending rate by calculating their cost of funds and adding the prescribed margin.

86. In a major setback to gay rights activists, the Supreme Court declined to review its December 11 judgment, holding that homosexuality or unnatural sex between two consenting adults was illegal.

87. The Aam Aadmi Party Government recommended an audit of the Delhi Integrated Multi-Modal Transit System (DIMTS) by the Comptroller and Auditor-General of India.

88. Ukraine’s Prime Minister Mykola Azarov tendered his resignation in order to facilitate “peaceful settlement” of the political crisis.

89. The U.N. Security Council unanimously approved a resolution allowing European troops to use force in the Central African Republic.

90. The Aam Aadmi Party Government in Delhi announced its intentions to form a Special Investigation Team (SIT) to probe the 1984 anti-Sikh riots.

91. The latest Education For All Global Monitoring Report (GMR) — released worldwide by the UNESCO — acknowledges that India currently has the largest population of illiterate adults in the world with 287 million. This is 37 per cent of the global total.

92. A former Norwegian Minister nominated whistleblower Edward Snowden for the Nobel Peace Prize.

93. The Indian Railways is gearing up to roll out next-generation e-ticketing from April this year, marking a ‘paradigm shift’ in technology, customer-friendliness and speed.

94. Three Australians of Indian origin Sadanandan Nambiar, Radhey Shyam Gupta and Pratish C. Bandopadhayay have received one of the most prestigious honours for their contribution to Australian society.

95. The Union Cabinet approved amendments to the Central List of Other Backward Classes (OBCs) to include or delete 115 castes from 13 States and three Union Territories.

96. The U.S. economy grew at a 3.2 per cent annual rate in the October-December quarter.

97. The Supreme Court stayed the execution of Devender Pal Singh Bhullar, sentenced to death for a bomb attack on former Indian Youth Congress president Maninderjeet Singh Bitta in 1993, and decided to examine his case afresh.

98. Mumbai Police Commissioner Satyapal Singh submitted his resignation to the State Home Department as he plans to explore a career in politics.

99. The family of the late Chief Justice of India, Justice J.S. Verma, has declined to accept the Padma Bhushan conferred on him.

100.The government said the economy might have expanded by 4.5 per cent in 2012-13, compared with the earlier estimate of 5 per cent. However GDP growth in 2011-12 has been revised upwards to 6.7 per cent from 6.2 per cent. At current prices, the gross national income in 2012-13 is estimated at Rs.92.70 lakh crore. Per capita net national income at factor cost in real terms is estimated to have risen by 2.1 per cent to Rs.38,856 in 2012-13.

101. Maruti Alto 800, Tata Nano, Ford Figo, Hyundai i10 and Volkswagen Polo, have failed crash tests, showing high risk of life-threatening injuries in road accidents.

102. Meghalaya’s oldest voter and the first Padma Shri awardee from the State, Silverine Swer, passed away.

103. As many as 37 candidates from 12 States have already been declared elected unopposed to the Rajya Sabha.

104. Oscar-winning actor Philip Seymour Hoffman was found dead in his New York apartment.

105. China has rejected reports suggesting it was planning to set up an air defence zone over the disputed South China Sea. In November, China established its first Air Defence Identification Zone (ADIZ) over parts of the East China Sea, amid an increasingly tense stand-off with Japan over the disputed Diaoyu/Senkaku islands.

106. The Delhi Government recommended to President Pranab Mukherjee that the “strictest possible action” be taken against former Chief Minister Sheila Dikshit for distributing “provisional regularisation certificates to unauthorised colonies in Delhi” ahead of the 2008 Assembly elections.

107. The Canara Bank submitted a draft scheme to the Karnataka High Court for taking over the specified assets and liabilities of the troubled Amanath Cooperative Bank.

108. The Indian Banks’ Association (IBA) has issued an advisory to banks to ensure business continuity after Microsoft ends support for its popular Windows XP operating system on April 8.

109. As Facebook celebrates its 10th anniversary.

110. The decision of the U.S. Federal Aviation Administration (FAA) to downgrade India to Category 2 under its International Aviation Safety Assessment programme will have cascading effect on Indian carriers though Air India and Jet Airways, which fly to the U.S, would be affected immediately.

111. The Delhi Anti-Corruption Branch lodged an FIR against the former Chief Minister, Sheila Dikshit, in a street light project scam that occurred ahead of the 2010 Commonwealth Games.

112. The Union government constituted a committee chaired by M.P. Bezbaruah to look into the problems faced by people from the Northeast living in other parts of the country, especially in metropolitan cities, and suggest remedial measures. The move follows the recent death of Nido Taniam, an 18-year-old student from Arunachal Pradesh, after an argument with some shopkeepers in a South Delhi market.

113. As part of a major reform travellers arriving in India from up to 180 countries can avail of the “visa on arrival’’ facility in the near future.

114. Indian Railways has decided to launch an all-India security helpline number for passengers soon. Although it will be managed by a professional call centre, complaints will be monitored by a DIG and four inspectors.

115. ISPO will launch four more foreign satellites for earth observation with its PSLV rocket between the year-end and 2015-end. ISRO’s commercial wing, Antrix Corporation, signed a contract with Singapore’s ST Electronics (Satcom & Sensor Systems) Pte Ltd. for putting in space its 400-kg TeLEOS-1 satellite, and entered into agreements with DMC International Imaging for launching three 350-kg DMC-3 disaster monitoring satellites.

116. India was among key players in generic drug market with eight of its companies figuring among the top 25 companies in the world that accounted for 28 per cent of global generics market.

117. President Jacob Zuma announced that South Africa will hold its fifth democratic general election on May 7.

118.RBI working paper has warned banks of further strains on their asset quality. Gross NPA ratio could rise to 4.4 per cent by end-March 2014. This ratio could go up to 7.6 per cent under the severe risk scenario.

119. RBI has issued Certificate of Authorisation to Tata Communications Payment Solutions Ltd., Prizm Payment Services Pvt. Ltd., Muthoot Finance Ltd., and Vakrangee Ltd. for setting up and operating white label ATMs. Of these, three have already launched their services.

120. SEBI Chairman U. K. Sinha has got a two-year extension till 2016 to continue.

121. Secretary of State John Kerry vowed that the United States would defend Japan against attack including over islands claimed by China as tensions boil between the Asian powers.

122. The Chinese Navy has conducted rare exercises in the Lumbok Strait in the Indian Ocean near Indonesia.

123. Civil service aspirants will soon get two additional attempts at cracking the UPSC examination along with a relaxation in the upper age limit. As per the existing rules, a general, OBC, SC & ST category candidate have 4, 7 and unlimited attempts respectively.

124. Penguin India has agreed to withdraw American Indologist Wendy Doniger’s book The Hindus: An Alternative History from the Indian market following an out-of-court settlement with Delhi-based complainants, who had moved the court alleging “distortion” aimed at “denigrating Hindu traditions.”

125. The International Olympic Committee lifted the suspension of the Indian Olympic Association after an ad-hoc meeting of its Executive Board in Sochi.

126. The Mars Orbiter spacecraft completes 100 days in space (Feb. 12), or roughly a third of its journey towards the Red Planet.

127.Indian National Security Advisor Shiv Shankar Menon and Chinese State Councillor Yang Jiechi held a “very constructive” two-day meeting, which discussed additional confidence-building measures such as early implementation of the Border Defence Cooperation Agreement (BDCA) as well as the core issue of a framework agreement for sorting out the border issue.

128.Nissan has displaced Maruti to become the second-largest passenger car exporter from India. Hyundai remains the number one car exporter.

129.Lakshmi Swaminthan, who hails from Chennai, has been elected as the President of the Administrative Tribunal of the Asian Development Bank (ADB).

130.A Parliamentary panel rejected the Bill on micro finance institutions, which sought to empower the Reserve Bank of India to regulate them and fix interest rates ceiling on loans to be provided by MFIs.

131.Reliance Industries chairman Mukesh Ambani, Petroleum Minister M. Veerappa Moily, former Minister Murli Deora and former Director-General of Hydrocarbons V.K. Sibal have been named in an FIR registered by the Anti-Corruption Branch of the Delhi government over alleged collusion in fixing natural gas prices and hoarding in the KG-D6 basin. The complaint alleges that gas prices will be doubled from April 1 to $8.4 (Rs.524.20) per mbtu as against $4.2 (Rs.262.25) per mbtu because of collusion between RIL and UPA-II government servants. The hike would cost the country a minimum of Rs.54,500 crore a year and allow RIL to make a windfall of Rs.1.2 lakh crore, the complaint alleged.

132. President Pranab Mukherjee has given his nod for the nomination of P.P. Rao, senior advocate, as jurist member of the selection committee of the Lokpal, the anti-corruption ombudsman, despite objections from Leader of the Opposition in the Lok Sabha Sushma Swaraj.

133. Italy has petitioned the U.N. over the trial of two of its marines in India under a strict anti-piracy law, for allegedly shooting down two fishermen off the Kerala coast and has vowed to exercise all options to bring back the naval personnel.

134. The Ministry of Rural Development directed the States not to deny workers job cards under the Mahatma Gandhi National Rural Employment Guarantee Act for non-possession of either bank/post office account numbers or the Aadhaar card. The directives follow an affidavit filed by activist Jean Dreze in the Supreme Court.

135. Consumer Price Index inflation fell for the second consecutive month, and eased to a 24-month low of 8.79 per cent in January mainly due to a drop in food prices.

136. Congress MP from Vijayawada L. Rajagopal used a can of pepper spray inside the Lok Sabha to protest against the tabling of the Andhra Pradesh Reorganisation Bill.

137. Washington ended its nine-year hands-off policy on Gujarat Chief Minister Narendra Modi when U.S. Ambassador Nancy J. Powell met him in Gandhinagar.

138. The Andhra Pradesh Reorganisation Bill envisages Hyderabad as the common capital. The Andhra Pradesh Governor will be Governor for both successor States of Andhra Pradesh and Telangana. Centre shall form expert committee to suggest a new

 capital of Andhra Pradesh within 45 days. 25 Lok Sabha seats to be allocated to residuary Andhra Pradesh and 17 Lok Sabha seats to Telangana. Residuary Andhra Pradesh will get 175 Legislative Assembly seats and Telangana 119. The High Court at Hyderabad will be common for both States till a separate High Court is set up for residuary Andhra Pradesh.

139. China plans to build the world’s longest underwater tunnel beneath the Bohai Sea by 2026, connecting the port cities of Dalian in Liaoning province and Yantai in Shandong province.

140. Honda Cars India has moved upwards to grab the position of India’s third largest car brand after Maruti and Hyundai from 6th position a year ago.

141. Securities and Exchange Board of India will hike the minimum net worth requirement for asset management companies (AMCs) from Rs.10 crore to Rs.50 crore.

142. The Election Commission of India will allow candidates contesting Lok Sabha elections to electronically file their nominations as well as affidavits containing financial, educational, and legal information on their backgrounds.

143. The Chinese film ‘Bai Ri Yan Huo’ (Black Coal, Thin Ice) has won the Golden Bear for best picture at the 64th Berlin international film festival.

145. Union Finance Minister P. Chidambaram announced a farm growth of 4.6 per cent in the current year. He set agriculture credit target of Rs. 8 lakh crore for 2014-15, against Rs.7.35 lakh crore expected this year. Mr. Chidambaram exempted the loading, unloading, packing, storage and warehousing of rice from service tax.

146. Under National Skill Development Corporation, Mr. Chidambaram said the National Skill Certification and Monetary Reward Scheme launched last August had been widely hailed as a success. He proposed another Rs. 1,000 crore next year to scale up the programme rapidly.

147. Finance Minister said the government was fully committed to Aadhar under which 57 crore unique numbers had been issued so far.

148. The Supreme Court got its full strength of 31 judges with the swearing-in of Justices Rajesh Kumar Agrawal and Nuthalapati Venkata Ramana by Chief Justice of India P. Sathasivam.

149. Centre has informed the Supreme Court that Kachatheevu could not be retrieved from Sri Lanka as demanded by DMK party president, M. Karunanidhi.

150. The Faisalabad government of Pakistan has proposed to develop Bangay, freedom fighter Bhagat Singh’s village, as a heritage site with a budget of Rs two crore as part of a plan to restore places of historical importance. Bangay would be developed with five other historical villages in the district.

151. The Union Ministry of Tourism has declared Sikkim the best State in the implementation of rural tourism projects.

152. Russia and Estonia have signed a border pact that took the two countries 23 years to negotiate.

153. Iran and the five permanent members of the U.N .Security Council plus Germany began talks in Vienna on reaching a comprehensive nuclear deal.

154. China emerged as the largest buyer of gold in the world in 2013 having bought 1,066 tonnes. Indian gold demand grew to 974.8 tonnes in 2013.

155. Tamil Nadu Chief Minister Jayalalithaa’s promise to free seven convicts serving life sentences for the assassination of the former Prime Minister Rajiv Gandhi. The Supreme Court directed the Tamil Nadu government not to release till March 6.

156. The first-ever night user trial of the nuclear-weapons capable Agni-1 surface-to-surface ballistic missile on Wheeler island, off the Odisha coast, was postponed for a second time due to a “technical glitch.

157. India and Bahrain signed three agreements to expand cooperation in key areas, including trade and business. The agreements were signed in the presence of Prime Minister Manmohan Singh and King Hamad bin Isa Al Khalifa in New Delhi.

158. The Union Cabinet approved Odia as a classical language. Now Odia has become the sixth language in the country to get classical language status after Sanskrit, Tamil, Telugu, Kannada and Malayalam.

159. About 10 per cent of the voters during this Lok Sabha election are likely to be first-time voters, possibly the highest in any election, electoral data show. The Election Commission’s data show that the proportion of 18-19 year olds registered to vote is the highest in Jharkhand (9 per cent of total electors), Chhattisgarh (4.9) and Rajasthan (4.8) and the lowest in Himachal Pradesh (1.3), Maharashtra (1.4) and Kerala and Karnataka (1.8).

160. China said the economic corridor that it is planning to construct to link its western Xinjiang region to Pakistan, through parts of the disputed Pakistan-occupied Kashmir (PoK), was not directed at “a third party” and would not pose any “detriment” to India’s concerns on the Kashmir issue.

161. Sudipta Sen the chairman and managing director of the Saradha Group that was involved in a massive Ponzi scheme scam was sentenced to three years in imprisonment.

162. Nandan Nilekani, Chairman of the Unique Identification Authority of India (UIDAI) said he would quit the organisation by March-end to contest the Lok Sabha election on Congress ticket.

163. Popular music director Bappi Lahiri has been appointed the goodwill ambassador of Unesco Nepal’s “Education For All” in a unique honour.

164. U.S. President Barack Obama welcomed Tibet’s exiled spiritual leader the Dalai Lama to the White House defying China, which said the meeting would “seriously impair” ties between the two countries.

165. Bharatiya Mahila Bank (BMB) signed a memorandum of understanding (MoU) with New India Assurance Company to deliver three unique innovative health insurance policies for women account holders of the bank. The policies — BMB-Sakhee, BMB-Nirbhaya and BMB-Parivar Suraksha — provide customised health insurance package for women.

166. Foreign exchange reserves surged by $1.46 billion to $293.79 billion in the week ended February 14 on account of increase in the currency assets, the Reserve Bank of India said.

167. Archaeological Survey of India has decided to make efforts to renovate the Red Fort in such a manner that the earlier grandeur of the Mughal-era is revived.

168. The Whistleblowers’ Protection Bill was passed by the Rajya Sabha. The Bill seeks to provide for “adequate protection to persons reporting corruption or wilful misuse of discretion which causes a demonstrable loss to the government, or commission of a criminal offence by a public servant.”

169. The Lalu Prasad-led Rashtriya Janata Dal suffered a huge blow after six of its 22 MLAs broke away from the party and announced that they would join the ruling Janata Dal (United). In a show of strength, Rashtriya Janata Dal chief Lalu Prasad declared the ‘return’ of nine of the 13 ‘rebel’ MLAs who broke away from the party to form a separate bloc.

170. The attempt to capture the non-Congress, non-BJP electoral space began in earnest with leaders of seven regional parties joining the Left Front in issuing a joint declaration, offering the electorate a “democratic, secular, federal and pro-people development agenda.”

171. A sting operation by a Hindi news channel appeared to show opinion polling agencies willing to manipulate the results on behalf of political parties for a price. The contents of the sting operation conducted by News Express.

172. President Barack Obama told his Afghan counterpart Hamid Karzai he is now planning a full U.S. troop withdrawal, but did not rule out making a deal on a post-2014 mission with the next Kabul government.

173. The Food and Civil Supplies Department and the World Food Programme (WFP) signed a Memorandum of Understanding (MoU) for modernising the public distribution system and for implementing the end-to-end computerisation project.

174. The Supreme Court ordered the arrest of Sahara chief Subrata Roy for his failure to appear before it in connection with the Rs.19,000-crore deposits his company has not refunded to its investors.

175. Gujarat Chief Minister Narendra Modi launched a 130-MW solar power plant at Bhagwanpur in Neemuch in Madhya Pradesh. This is the largest solar power plant in India set up at a cost of Rs. 1,100 crore on 305 hectares of land, will supply power at Rs. 8.05 a kWh.

176. The Uttar Pradesh Government approved the proposal for establishing a tiger reserve in Pilibhit.

177. Delhi Police launched on line complain facility for lodging a complaint about a lost article. The application is currently available on Android phones. It will be made available on Windows and Apple phones soon.