Current Affairs Current Affairs - 26 October 2016 - Vikalp Education

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Current Affairs - 26 October 2016


General Affairs 

Will Not Accept Any Funds, 'No Catching Of Necks': Manohar Parrikar On 'Ae Dil...' Row
  • NEW DELHI:  The Indian Military will not accept any funds donated for welfare under coercion, Defence Minister Manohar Parrikar said today and quipped that there can be "no catching of necks."

    Filmmakers like Karan Johar have controversially been asked by politician Raj Thackeray to pay Rs. 5 crore to the military welfare fund as "penance" for working with Pakistani actors.

    Mr Thackeray's MNS or Maharashtra Navnirman Sena was among the groups that had threatened to block Mr Johar's movie "Ae Dil Hai Mushkil" as it stars Pakistani actor Fawad Khan. A section of politicians and filmmakers believe artistes from across the border should be banned after the Uri attack in which 19 soldiers were killed by terrorists from Pakistan.

    In a settlement negotiated by Maharashtra Chief Minister Devendra Fadnavis, Mr Thackeray agreed to drop his protest plan if donations were made from the films' earnings to the cause of the forces.

    Mr Parrikar's comment on not accepting forced donations may be awkward for Mr Fadnavis, who has confronted strong disapproval for mediating with Mr Thackeray.


    "Donations are voluntary. You cannot catch someone by his neck. We don't appreciate it," the minister said.

    The government had, after several representations from people, opened a fund where people could donate voluntarily for the welfare of the military, Mr Parrikar said.

    The ministry is working on rules to ban "coerced donations" to the Battle Casualty Welfare Fund. How to take the contributions to the families of soldiers is being debated.

Akhilesh Yadav Requests PM Modi To Increase Kerosene Quota In Uttar Pradesh
  • LUCKNOW:  Uttar Pradesh Chief Minister Akhilesh Yadav today requested Prime minister Narendra Modi to increase kerosene quota in the state.

    In a letter to PM Modi, Mr Yadav said that quarterly state quota of kerosene has been decreased in the past three quarters due to which there is resentment among the people.

    "It should be increased to 600936 KL to meet the state's demand," he said.


    The Chief Minister said that in a letter directed to the Prime Minister and the petroleum minister in April and June, state minister Kamal Akhtar had requested for the same but no decision in this regard has been taken so far.

    "There are four crore ration card holders in the state and they used to get kerosene through Public Distribution System (PDS) with estimate of 5 litre per head/month, state needed two lakh KL kerosene," he said.

    "Keeping in mind the demand of the state, the centre had cut state allocation of kerosene by 1.67 KL till now," he said, requesting the Prime Minister to increase the quota.

Defence Minister Manohar Parrikar Hails Navy For Indigenisation
  • NEW DELHI:  Defence Minister Manohar Parrikar on Tuesday praised the Indian Navy for embarking on the Make in India initiative in a big way, and expressed hope that whatever lacunae are there would be overcome soon.

    Talking to journalists on the sidelines of the Naval Commanders' Conference in New Delhi, the Defence Minister also praised the navy for its capability of integrating different weapons and weapon systems of different origins.

    "I am quite happy that the navy on the force level is progressing quite well. It is a leader in Make in India, as all 42 ships being made here are indigenously designed ships and lots of efforts have gone into it," Mr Parrikar said.

    "On sensors, weapon system and integration of different countries' weapons and weapon systems, it is a specialty that only Indian Navy possesses. You may have a Russian and American equipment and fire system or missiles on an Indian platform and both can be operated through an integration by the Indian Navy," he said.

    "It's quite an achievement," he said, adding, however, that there are some lacunae which would be addressed.

    The Indian Navy currently has around 90 per cent indigenisation in float component, 60 per cent indigenisation in move component, and 30 per cent in the fight component. The fight component constitutes around 60-70 per cent value of the ship.


    Asked about the recently-signed agreements with Russia for the supply of Kamov helicopters and four frigates, the minister underlined that the choppers would be built in India by the Kamov and the Hindustan Aeronautics Ltd (HAL).

    On the agreement for the four frigates, the minister said the plan was in pipeline for long, but was stuck as the power plant on the ship was to be imported from Ukraine. Ukraine stopped defence trade with Russia after 2014.

    "Discussions started long back. Only problem was because of the Ukrainian-Russian conflict, as the ship's power plant is Ukrainian. Now, we will buy the power plant and fit it on the ship," Mr Parrikar said.

    Two of the four frigates are to be built in Russia and the other two in India.

    "All Indian equipment will be fitted on the frigate. So, it is a stealth variety where we are in position of designing," he said.

    Top commanders of the Indian Navy are meeting in the national capital from October 25 to 27 to review the prevailing as well as emerging operational and functional issues at the Naval Commanders' Conference.

Had Opposed MNS's Rs. 5 Crore Demand: Devendra Fadnavis On 'Ae Dil...' Row
  • MUMBAI:  Under fire over "brokering" a deal between producers of "Ae Dil Hai Mushkil" and MNS chief Raj Thackeray, Maharashtra Chief Minister Devendra Fadnavis has maintained that he had opposed the offer of Rs. 5 crore contribution from the makers to the Army welfare fund.

    Karan Johar's film faced protests by MNS workers for casting Pakistani actor Fawad Khan. Film's smooth release, scheduled to open on October 28, was ensured at a meeting of Film Producers' Guild, producers and Raj Thackeray, mediated by Mr Fadnavis last week. A key demand conceded in the meeting was Rs. 5 crore contribution from the makers for army welfare.

    "Thackeray had put three demands, out of which there was no objections to the other two. When the issue of Rs. 5 crore came up, I intervened and made it clear to the Film Producers' Guild that they need not have to agree to it. I also told them that the contribution has to be made voluntarily. However, it was producers' decision to accept it," Mr Fadnavis said.

    "I categorically told that although it is nice that the Guild has decided to stand by the families of our martyrs but it is not a compulsion. Still if they wish to do, they may contribute whatever amount they feel (is) appropriate. This figure of (Rs.) 5 crore came from MNS but was not agreed in the meeting and turned down then and there only," he said.

    When asked about allegations of "brokering" the deal, Mr Fadnavis said, "Another choice was deploying thousands of police staff outside theatres (when film releases). I would then faced allegations like I have spoiled Diwali holiday mood of police staff. Issues should be solved by talking, and we are a democratic government."


    Before intervention, Mumbai Police had already arrested MNS activists, hence there should not be any doubts about government's intentions. Some even called that state government is playing both sides, which is not true, he added.

    BJP's ally Shiv Sena has slammed the CM's intervention in the matter and had termed Mr Fadnavis's act as "siding with Pakistani personalities."

    On this, Mr Fadnavis said, "Did our governments not talk with separatists like Hurriyat (Conference) or negotiate with Naxal groups for peace? Then holding discussions with a political party, though this is comparatively a minor one (issue), should not be criticised so bitterly. I think, successful mediation has disappointed some people."

    He also refuted charges of going soft on MNS and emphasised that there was "no political motive" behind such negotiations.

Don't Tinker With Shariat: Mayawati On PM Modi's Triple Talaq Remarks
  • LUCKNOW:  BSP supremo Mayawati today criticised Prime Minister Narendra Modi over his stance on the issue of triple talaq, saying he should not "force his opinion and decision" on the believers of any particular religion by "following the RSS agenda".

    Accusing the BJP and the Centre of tinkering with issues related to Shariat, she said such matters should be left to the Muslim community and not raked up with an eye on the upcoming Assembly elections in some states for political gains.
        
    "BJP and its central government led by Narendra Modi has now started a new controversy over Muslim personal law, triple talaq and common civil code before the Assembly elections in some states to serve its petty politics. BSP strongly condemns it," Mayawati said in a statement.

    "The prime minister and central government instead of interfering in the issue of triple talaq should better leave it to the Muslim community to form a common opinion," she stressed.


    PM Modi had on Monday denounced the practice of triple talaq among Muslims and deprecated attempts to politicise the issue.

    The BSP chief said it is not right for the prime minister to "force his opinion and decision on the believers of any particular religion by following the RSS agenda".

    "It is not in national interest that BJP and prime minister indulge in petty politics in the matters of Muslims and their Shariat, especially before the coming Assembly polls in some states," she added.

Business Affairs 

Ralf Speth, N Chandrasekaran join Tata Sons Board
  • Ralf Speth, CEO of Jaguar Land Rover and  N Chandrasekaran, CEO & Managing Director of Tata Consultancy Services, have been appointed as Additional Directors on the Tata Sons Board.
    Commenting on their appointment, Ratan N. Tata, Interim Chairman of Tata Sons, said, "This is in recognition of their exemplary leadership in their companies."
    With the appointments of Speth and Chandrashekharan, Tata Sons board has expanded to 12 members.
    "Through these appointments the old tradition of Tata Sons of having CEOs of group firms on its board has been restored," PTI said.
    Krishna Kumar of Indian Hotels Co Ltd and JJ Irani of Tata Steel were notable members of Tata Sons board when Ratan Tata was at the helm of the group before he retired in 2012.
    The present board of Tata Sons includes Tata himself, along with Cyrus Mistry, Venu Srinivasan, Ronen Sen, Nitin Nohria, Farida Khambhata and Ajay Piramal, among others.
    Earlier in the day, Ratan Tata told the senior executives of the Tata Group that an "institution must exceed the people who lead it". 
    "The companies must focus on their market position vis-a-vis competition, and not compare themselves to their own past. The drive must be on leadership rather than to follow," he said, addressing Managing Directors and senior leaders of Tata companies.
    Ratan Tata added that he looks forward to resuming his role as the interim Chairman.
    "I look forward to working with you as we have worked together in the past. An institution must exceed the people who lead it. I am proud of all of you, and let us continue to build the group together," he added.

    HDFC Bank Q2 net jumps 20% at Rs 3,455 crore; NPAs improve
    • HDFC Bank on Tuesday reported a 20.4 per cent increase in its net profit at Rs 3,455.3 crore for the September quarter on a faster rise in retail assets that led to a robust growth in core interest income.
      The country's second largest private sector lender had clocked Rs 2,869.5 crore profit in the corresponding three months a year ago.
      The core net interest income rose 19.6 per cent to Rs 7,993.6 crore in the second quarter ended September 30, while other income shot up 13.7 per cent to Rs 2,901 crore.
      A 22 per cent growth in the high-margin retail advances pushed up the overall advances 18.1 per cent compared to the year-ago period. The retail loans were driven across the segment, including auto, which saw a 20 per cent rise.
      The net interest margin dipped by 0.10 per cent to 4.2 per cent, which was attributed by Deputy Managing Director Paresh Sukthankar to a liquidity build up in the run-up to the FCNR-B deposit redemptions.
      He said much of the USD 3.4 billion in deposits -- the largest in the system -- raised by the bank are leveraged ones, wherein the depositors will be looking not to roll them over due to which it has increased the liquidity cover.
      Sukthankar explained that this money has been deployed in low-earnings assets like treasury bills or short-term investments and it has hit the margins.
      The bank expects the redemptions to start this week, Sukthankar said, adding it is fully prepared for it.
      Siddharth Purohit of Angel Broking said the numbers were in-line with the forecast, except for the negative surprise of moderation in loan growth to 18.1 per cent from 23.3 per cent it had reported in the first quarter.
      "On a positive side, the bank reported a marginal improvement in its asset quality with GNPAs at 1.02 per cent against 1.04 per cent QoQ," he said, adding since the bank has strong credit monitoring system "we hope the bank will be able to maintain stable asset quality going ahead as well".
      Emkay Research also termed the numbers as steady and as per its forecast.
      The share of the low cost current and savings account deposits stood at 40 per cent as of end September.
      On the recent ATM security breach, Sukthankar admitted the bank also had to do "recarding" or replacement of cards for a few customers, besides the already announced PIN changes. 

      Bharti Airtel Q2 net slips 4.9% to Rs 1,461 crore
      • Telecom major Bharti Airtel on Tuesday posted 4.9 per cent drop in its consolidated net profit at Rs 1,461 crore in the September quarter, mainly on account of increased spectrum related costs and devaluation of Nigerian currency.
        The company had reported a net profit of Rs 1,536 crore in the year-ago period.
        "Net interest costs of Rs 1,603 crore have risen from Rs 1,053 crore in the corresponding quarter last year largely due to increased spectrum related interest costs," Airtel said in a statement.
        Also, growth of Bharti Airtel's mobile business in India slowed down due to launch of free mobile service by Reliance Jio.
        "Overall revenue momentum in India has been sustained during Q2 with a growth of 10.1 per cent Y-o-Y.
        "This is primarily due to the strong performance of our non-mobile businesses which grew in aggregate at 18.8 per cent Y-o-Y, albeit our mobile business has experienced a slowdown in growth due to free services being offered by a new operator," the firm's MD and CEO (India and South Asia) Gopal Vittal said.
        India revenues during the quarter ended September 30 grew by 10.1 per cent to Rs 19,219 crore on year-on-year basis.
        The company said its India business grew on account of 20.9 per cent growth in digital TV, 19.2 per cent in Airtel Business, 14.9 per cent in homes and 7.9 per cent in mobile, on year-on-year basis.
        Total income increased by 3.4 per cent to Rs 24,671.5 crore against Rs 23,851.9 crore earlier.
        Airtel said consolidated revenue growth was muted at 3.3 per cent on account of full quarter impact of Nigeria currency devaluation.
        During the quarter, except for Nigeria, currencies were stable in most of the geographies, which resulted in lower forex and derivative losses of Rs 302 crore compared to Rs 822 crore in the corresponding quarter last year, the company said.
        Consolidated mobile data revenues grew by 21 per cent y-o-y to Rs 4,536 crore.
        "Mobile Data revenues now contribute to 24.7 per cent of Mobile India revenues vis-a-vis 21.5 per cent in the corresponding quarter last year," Airtel said.

        Top ten Diwali picks for Samvat 2073 by brokerages
        • Domestic brokerages are bullish on Samvat 2073, the Hindu calendar year, thanks to a slew of positive domestic triggers such as good monsoon, lower inflation, roll-out of Goods and Services Tax (GST) and infrastructure reforms. However, geopolitical tension between Indian and Pakistan and global factors such as US Presidential election and Federal Reserve's monetary policy may lead to a volatile road ahead for markets, believe experts.   
          "Strong pick-up in earnings and return to double digit growth in revenue is crucial for markets to move up on a sustainable basis. We remain bullish on markets," said brokerage Motilal Oswal Securities in a research note.
          Samvat 2072 is ending with gains of about 11 per cent on the benchmark indices, which have come after significant volatility. With less than a week left for Samvat 2073 to begin, we have compiled ten stocks recommended by various  brokerages to buy this Diwali:
          Motilal Oswal Securities
          1) HDFC Bank (Target price: Rs 1450)
          Over the last 12 years, HDFC Bank's market share has increased significantly in (1) retail loans, (2) low-cost deposits and (3) profitability, indicating the strength of its franchisee. Strong fundamentals and near-nil stress loans would enable the bank to gain market share. Further, continued strong investment in people and branches indicating management positive outlook on business. RoEs are expected to be the best amongst private banks at nearly 20 per cent.
          2) LIC Housing Finance (Target price: Rs 748)
          LIC Housing Finance, the second largest housing finance company, will be the biggest beneficiary of falling GSec yields as more than 80 per cent of borrowings come from capital markets.
          "We believe LIC Housing should sustain over 2 per cent incremental spreads in coming years, which would boost its earnings and RoE. We estimate 22 per cent EPS CAGR over FY16-19 with consistent RoEs of  nearly 20 per cent which should drive re-rating," said MOSL.
          3) Bharat Electronics (Target price: Rs 1450)
          Bharat Electronics is well positioned to benefit from the rising defense expenditure supported by a) strong manufacturing base (capacity utilization of nearly 60 per cent) and execution track record, b) relationship with defense and government agencies, c) strategic collaboration with foreign technology partners for new products development d)in-house R&D capabilities (R&D spend at 8.2 per cent of revenues) and e) Increased focus on exports to friendly countries.
          4) Amara Raja Batteries (Target price: Rs 1257)
          Amara Raja is India's second-largest lead-acid battery manufacturer (next to market leader Exide), with market leadership in telecom and UPS segments. "Stable competitive environment, significant FCF generation (Rs 2.6 billion over FY16-18) and stable RoE of 25 per cent, coupled with potential shift from unorganized to organized players when GST rolls out is to sustain high growth trajectory.
          HDFC Securities
          5) Bajaj Electricals (Target Price: Rs 349)
          A well-entrenched and expanding distribution network (2,200+ distributors, 4,000+ dealers, 5 lakh+ retailers) should enable Bajaj to capitalise on demand revival and regain lost market share. Improving cash flows, core WCC, return ratios and reducing debt/equity strengthen our view that the stock deserves higher multiples. Based upon Rs 19 earnings on FY18E; we value the stock ~18x on FY18E earnings and arrive price target of Rs 322 and Rs 349 over the next 3-4 quarters.
          6) Lupin (Target Price: Rs 2,050)
          After a 25-28 per cent fall from its peak, we believe most of the negatives are priced in for LPC and present a great opportunity to BUY this stock at attractive valuations (below 18x on FY18E EPS). "At CMP, the stock is trading at 21.3x FY17E EPS and 17.7x FY18E EPS, a hefty 25% discount to the trailing three-year average multiple. US FDA clearance for the Goa facility would be the key trigger in the near term," said the brokerage. Buy at CMP and add on declines
          Kotak Securities
          7) Allcargo (Target price: Rs 215)
          Allcargo has a strong presence in the Multimodal Transport Operation (MTO) business through wide network of ECU Line. It also has a strong hold on domestic MTO business and continues to perform strongly in the MTO segment despite sluggish container shipping market We estimate the MTO segment to grow at nearly 6.2 per cent in FY17 and ~5.4% in FY18
          "Relationship with shipping lines, vast experience in logistics business and presence in other verticals (MTO) should help Allcargo to outperform most of its peers in the CFS segment,".
          8) Mahindra & Mahindra (Target price: Rs 1541)
          In the auto segment, the brokerage expects volume growth to moderate to single digits in FY17. In FY18, we expect demand growth will benefit from full impact of likely rural recovery, launch of petrol variants for XUV500 and Scorpio and new product launch. Good monsoons is also likely to keep tractor demand robust in FY17 and the impact will likely roll over to FY18.
          "Profit margin for M&M's auto segment is likely to stay subdued. However, tractor business is expected to witness strong margins due to healthy demand recovery. Overall, increased share of tractor revenues will be positive for overall EBITDA margins," said Kotak Securities.
          Angel Broking
          9) Axis Bank
          Axis Bank has outpaced the industry growth rate in loan book (19 per cent CAGR over FY12-16), led by a 39 per cent CAGR in retail loans. Well capitalised balance sheet will help the bank in growing its loan book by more than 20 per cent over the next 2-3 years.
          "We believe the current corrections in the stock gives long term investors an opportunity to enter the stock. We upgrade the stock to a 'buy' with a target price of Rs 630.
          10) Equitas Holdings
          Equitas was one of the ten NBFCs to get the license to start a small finance bank. As the entire book of Equitas qualifies for Priority Sector Lending, meeting the 75 per cent target will not be a challenge. Sizeable and diversified loan book will keep it ahead of other upcoming SFBs. "We maintain Buy on the stock, with a target price of Rs 235," said Angel Broking.

          Govt has strategic control; no threat to tax data: GSTN Chairman
          • Debunking criticism over equity structure of the company building world's biggest tax system, GST-Network Chairman Navin Kumar today said all measures have been taken to protect sensitive tax information and the government will have strategic control over it.
            By keeping Goods and Services Tax Network (GSTN) private, the company has been equipped to take decisions quickly as an agile and nimble organisation not bound by red tape that can retain talent by paying market salaries, he told PTI.
            Kumar insisted that enough fire-walls and 8-levels of security is being built to keep the data safe.
            BJP leader Subramanian Swamy has questioned the structure of the entity created under the previous UPA regime saying how a private firm can be allowed access to "sensitive" tax information without security clearance.
            The Government of India has 24.5 per cent stake in GSTN and the state government an equal share. The remaining 51 per cent is with private financial institutions.
            "But measures for strategic control by the government have been built-in," he said adding the GSTN board has 14 directors, half of them are appointed by the government.
            The Centre and State nominate three directors each and the Chairman is jointly named by the two.
            "So government has 49 per cent equity and 50 per cent of the directors. The private equity holders who hold 51 per cent, can nominate only three directors. And then there are three are indepedent directors and one is a CEO.
            "The rules of business specify that no meeting of the board can take place unless 50 per cent of the directors are from government. Which basically means that no decision can be taken against the wishes of the government. So this is the strategic control that they exercise," Kumar said.
            While GSTN in day-to-day functioning works like a private company, takes quick decisions and is not bound by the PSU rules, there are certain critical decisions which can be taken only through special resolution in the general meeting, where 75 per cent of the votes are to be polled for any decision.
            "So in a nutshell, it is a non-government company over which government has a strategic control," he said.
            Asked about concerns over data security, he said this is not the first time that the government is implementing an IT project through a private company.
            "There are many large IT projects already in operation.
            Take the case of Income Tax. Who is doing the Income Tax project-- it is Infosys and TCS. What are Infosys and TCS, they are private companies. Go to any VAT projects in the states, most of them are being done by either TCS or Wipro...
            "So is the I-T data sensitive or not? That is with these private companies. Now look at GSTN. GSTN is structured as a private company over which government has a strategic control.
            No decision can be taken without its consent... So what is the concern? If data can rest with TCS or Wipro without any problem, why is a question being raised about GSTN handling such data. Because here government has a presence on our board. So there is no problem," Kumar said.
            GSTN is a not-for-profit, non-government, private limited company promoted by the central and state governments with the specific mandate to build the IT infrastructure and the services required for implementing GST.

            Its services will be made available to all stakeholders such as the central tax department and tax departments of all state governments, RBI, banks and taxpayers, Kumar said.
            "If you want to know why it is a non-government, private company and not a PSU, for that let me take you back to 2010 when the finance ministry was looking at some large financial sector projects like NPS. Like TIN, GST, there were 4-5 such large projects.
            He said further: "So they set up a Technical Advisory Group on Unique Projects (TAGUP), and they were asked to suggest road maps for implementing these large financial sector projects."
            He added that they recommended setting up National Information Utilities (NIU) to implement such projects.
            NIU, the TAGUP recommended, should be structured as non-government private company with a public purpose.
            In July 2010, the empowered committee of state finance ministers, which had been working on GST since 2005, constituted an empowered group on IT infrastructure under Nandan Nilekani.
            This committee had representation from the Centre, the revenue department and CBEC as well as from five states of Maharashtra, Gujarat, Karnataka, West Bengal and Odisha.
            The panel recommended that NIU for GST should be a special purpose vehicle structured as a non-government, not-for-profit private company. "They suggested 49 per cent equity for government to be shared between central and state governments. So that is how in March 2013, this company got registered," he said.
            This structure, he said, was decided by the empowered committee of state finance ministers on GST.
            "They gave 4-5 reasons (for the structure). First, this SPV must have independence of management, it should not be reporting to any government, but it should be structured such that while it is not under any government, the latter will have a say in its management so that in day-to-day working, the company is not constrained by any rules, regulations or instruction of the government," he said.
            Second, the organisation should be agile and nimble to take quick decisions. Also, it should be able to attract the best of talent both in IT and the field of indirect taxes and be able to hire and retain competent resources.
            "This kind of freedom should be given which a PSU will never have. So, these were the reasons given," he said, adding that it was recommended that the government should exercise a strategic control over this company as the work it will do is in the public domain.
            On the security of data, he said there are 8-levels of security, and ISO 27001, which is the best available standard for information security management, is being followed.
            "So our system will be ISO 27001-certified which means the best available tools for security in the world whether in terms of hardware or software will be used. We are going to ensure the security of the data systems," he added.

          General Awareness

          Andhra Pradesh, Singapore’s MAS pact for financial services

          • Andhra Pradesh government signed an agreement with the Monetary Authority of Singapore (MAS) to promote innovation in financial services in their respective markets.
            About MAS :
            The Monetary Authority of Singapore is Singapore’s central bank and financial regulatory  It administers the various statutes pertaining to money, banking, insurance, securities and the financial sector in general, as well as currency issuance.
            • The MAS was founded in 1971 to oversee various monetary functions associated with banking and finance. Before its establishment, monetary functions were performed by government departments and agencies.
            • As Singapore progressed, an increasingly complex banking and monetary environment required more dynamic and coherent monetary administration.
            • Therefore, in 1970, the Parliament of Singapore passed the Monetary Authority of Singapore Act leading to the formation of MAS on 1 January 1971. The act gives MAS the authority to regulate all elements of monetary policy, banking, and finance in Singapore.
            • In April 1977, the Government decided to bring the regulation of the insurance industry under the wing of the MAS and in September 1984 the regulatory functions under the Securities Industry Act (1973) were also transferred to MAS. This means that unlike many other central banks, MAS is also the financial regulatory authority for Singapore.
            • The MAS has been given powers to act as a banker to, and financial agent of, the Government. It has also been entrusted to promote monetary stability, and credit and exchange policies conducive to the growth of the economy.
            • Following its merger with the Board of Commissioners of Currency on 1 October 2002, the MAS assumed the function of currency issuance.
            • MAS has the exclusive right to issue banknotes and coins in the Republic of Singapore. Their dimensions, designs and denominations are determined by the Monetary Policy Committee with Government approval.
            • The banknotes and coins thus issued have the status of legal tender within the country for all transactions, both public and private, without limitation.
            About the Agreement,
            Under the FinTech Cooperation Agreement, MAS and the state government will explore joint innovation projects on technologies such as digital payments and block-chain, collaborate on development of education programmes and curricula on fintech (financial technologies).
            • The Singapore’s central bank (MAS) and the Andhra Pradesh government have also agreed to discuss emerging FinTech trends and exchange views on regulatory issues related to innovations in financial services.
            • This agreement will pave way for greater FinTech collaboration between Singapore and Andhra Pradesh. We are looking to create a market place in India for FinTech solutions developed in Singapore.
            • The knowledge exchange between the startups in Singapore and Visakhapatnam will not only create high-quality job opportunities in FinTech but also help provide market access for implementation in both countries.

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