My Current Affairs Notes- 8th May, 2018

 Current Affairs Notes- 8th May 2018 

• 15th Asia Media Summit to be hosted by India from May 10-12, 2018 in New Delhi

THEME: Telling Our Stories – Asia and More

The 15th Asia Media Summit (AMS) 2018 is being hosted by the Ministry of Information and Broadcasting, Government of India, jointly with the Indian Institute of Mass Communication (IIMC), New Delhi and Broadcast Engineering Consultants India Limited (BECIL), from 10th-12th May 2018 in New Delhi.

• India and Guatemala agree to support each other for Non-permanent membership of UNSC

Shri Venkaiah Naidu kick starts high level Latin American outreach with wide-ranging talks with top leaders of Guatemala. India agrees to Guatemala’s request for supplying solar panels to its airports.



India and Guatemala today agreed to support each other’s candidature for Non-Permanent Membership in the United Nations Security Council. Guatemala will support India’s candidature for UNSC membership for 2021-22.

Capital: Guatemala City

Currency: Guatemalan Quetzal

• Health Assurance programme under Ayushman Bharat

Shri Narendra Modi has reviewed the progress of preparations towards the launch of the ambitious Health Assurance programme under Ayushman Bharat.

The scheme will provide a cover of up to Rs. 5 lakh per family. It will be targeted to cover over 10 crore poor and vulnerable families. Last month, on the occasion of Ambedkar Jayanti, the Prime Minister had inaugurated the first 'Health and Wellness Centre' under Ayushman Bharat, in the aspirational district of Bijapur in Chhattisgarh.

• Van Dhan Vikas Kendras in Tribal Districts across the country

The Van Dhan Vikas Kendra launched at Bijapur by the Prime Minister, Shri Narendra Modi on 14thApril, 2018 and his call to converge Jan Dhan, Van Dhan and Govardhan Schemes, the Ministry of Tribal Affairs (MoTA).

The government of India proposes to expand Van Dhan Vikas Kendras in Tribal Districts across the country. This initiative is aimed at mainstreaming the tribal community by promoting primary level value addition to MFP at a grassroots level.

• Google launched Android Things (Brillo)

Alphabet Inc’s Google launched Android Things (codenamed Brillo), a variant (or spinoff) of an Android operating system for the Internet of Things (IoT) devices such as smart home appliances and other smart machines. Its goal is to enable IoT machines developers to be built faster, cheaper and more secure.

POSHAN Abhiyaan

India inks $200 million loan agreement with World Bank for POSHAN Abhiyaan. The Ministry of Women and Child Development conducted the first National workshop on POSHAN Abhiyaan involving all the States and Union Territories at Pravasi Bharatiya Kendra, New Delhi today.

USE YOUR FAILURE 

POSHAN Abhiyaan was launched on 8th March 2018 by the Prime Minister in Jhunjhunu. The Abhiyaan targets to reduce stunting, under-nutrition, anemia (among young children, women and adolescent girls) and reduce low birth weight by 2%, 2%, 3% and 2% per annum respectively. The target of the mission is to bring down stunting among children in the age group 0-6 years from 38.4% to 25% by 2022.

• United Nations Peacekeeping Course for African Partners (UNPCAP) 

The third edition of United Nations Peacekeeping Course for African Partners (UNPCAP) was held in New Delhi from May 7 to 25, 2018.

The NITI Aayog has signed Statement of Intent (SoI) with search engine giant Google to work together to foster growth for India’s nascent artificial Intelligence (AI)

General Awareness Section-IBPS-PO 2018

General Awareness Section

IBPS-PO 2018 

USe your Failure

 General Awareness thing has the following parts:

ü CURRENT AFFAIRS( Last 6 Months - (Mar-August) Only the stuff you need to know )

ü BANKING AWARENESS( Basics of Banking Awareness – Last 6 Months Banking Industry Updates)

ü FINANCIAL AWARENESS( Basics of Financial Awareness – Economics Terms)

ü STATIC GA (As per the new [pattern])


DISCLAIMER


§ Don’t just Read the News Paper-(Analyze the News Paper).Try to write something about the hot topics.

§ Don’t search the random stuff online. (Think about the online coaching business, What you see is not What you get- WYSNWYG)

§ Don’t try to learn the news. (Try to integrate the news and illustrate the whole scenario in your own terms).

BANKING AWARENESS:



ü LEVEL 1: INDIAN BANKING INDUSTRY (History, Nationalized Banks – HQs , MD, Taglines, Non Commercial Banks, Development Banks)

ü Level2: RBI (History, Governor, Deputy Governors, Functions, Currency Chest, Press, Subsidiary of RBI)

ü Level 3: MONETARY POLICY (Bank Rates, Monetary Policy Committee)

ü Level 4: BASEL (BIS, BASEL NORMS: BASEL 1, BASEL 2, BASEL 3, DSIB (SBI, ICICI)

ü Level 5: NPA (NPA, SARFAESI Act, DRT, DRAT)

ü Level 6: HOW BANKS WORK? (Functions, Banking Ombudsman, Bancassurance, Various Accounts)



FINANCIAL AWARENESS
ü LEVEL1: Budget (History, Budget Basics, Receipt, Expenditure, Deficit, Annual Financial Report)

ü Level 2: Money Market

ü Level 3: Capital Market

ü Level 4: National Income

ü Level 5: FDI

ü Level 6: Inflation



CURRENT AFFAIRS

ü Level 1: NATIONAL

ü LEVEL 2: SPORTS

ü LEVEL3: INTERNATIONAL

ü LEVEL4: BANKING UPDATES

ü LEVEL 5: FINANCIAL UPDATES.

ü LEVEL 6: GOVERNMENT SCHEMES



STATIC

ü LEVEL1: IMPORTANT DAYS, SPORTS TROPHYS, INTERNATIONAL ORGANIZATIONS AND HQs.

ü LEVEL2: IMPORTANT RIVERS, AIRPORTS, NATIONAL PARK AND WILD LIFE SANCUTARIES.

ü LEVEL3: IMPORTANT INTERNATIONAL BANKS AND HQs.

ü LEVEL4: BOOKS –AUTHORS, CONSTITUENCIES (MINISTERS), MoU AND AGREEMENTS, AWARDS.

ü LEVEL5: COMMITTEE AND HEAD.

ü LEVEL6: TAKE DAILY DOSE (THREE TIMES A DAY) TILL YOUR D DAY.

MAGAZINE ISSUES PDF FOR GENERAL AWARENESS...

MAGAZINE ISSUES PDF 

GENERAL AWARENESS...

YOJNA MARCH 2018::     CLICK HERE

BSC MAGAZINE: CLICK HERE 

REMEMBER: THIS IS YOUR TYM. DO OR DIE 

STAY SAFE, PLAY HARD...

Banking Awareness for IBPS-PO 2018-BASEL

Banking Awareness 

IBPS-PO 2018

BASEL

BASEL: A committee on banking supervision, authorities that was established by Central Bank Governors of 10 countries in 1974.


1. USA


2. UK


3. ITALY


4. JAPAN


5. CANADA


6. SWITZERLAND


7. SWEDEN


8. BELGIUM


9. GERMANY


10. FRANCE


BASEL (A City of Switzerland)


HQ of BIS (Bank for International Settlement – BASEL)


Ø World’s Oldest International Financial Organization


Ø Established: 17 May 1930


Ø VC – Raghu Ram Rajan


Ø Representative Office- Hong Kong /Mexico


BCBS: (BASEL COMMITTEE FOR BANKING SUPERVISION)


Provide a forum for Regular Co-operation on Banking Supervisory Matter (Review)


RISK


1. CREDIT RISK


2. OPERATIONAL RISK


3. MARKET RISK


BASEL –to reduce the risk of Loans provided by banks


BASEL


BASEL 1


Introduced and apply on: 1988


In India: 1992


MCR (Marginal Capital Requirement)


CAR -4%-8%


CAPITAL ADEQUACY RATIO


BASEL 2










Introduced and apply on: 2003


Apply: 2006


In India: 2009


CAR -8%


In India 9 %


Tier 1 -7%


Tier 2 -2%


Pillars- P1, P2, P3


P1: MCR
























BASEL 3


Introduced 2010


Apply 2013


In India: 31 March 2019


CAR- 10.5%


In India: 11.5%


CCB (Capital Conservation Buffer) - 2.5%


Pillars:


P1: MCR


P2: SRP (Supervisory Review Process)


RBI will supervise CAR for Banks.


P3: Market Discipline


(Government and Public will ask bank to discipline)


CRWA: Capital to Risk Weighted Asset Ratio


Total Capacity: Tier1+ Tier2


Tier1: owned permanent- Capital of Banks


Tier1: 7%


5.5% (Core Capital)


1.5% (Additional)


Tier 2: Borrowing + Liabilities


BASEL 3:


2008 Lehman’s Brother Bank US


CCB (Capital Conservative Buffer)


CAR –is a ratio of Bank’s Capital and Risk


A Bank can absorb a reasonable amount of loss and complies with statutory capital requirements.


DSIB (Dynamically Systematically Important Bank)


Bucket Bank


1% -


0.8% -


0.6% SBI


0.4% -


0.2 % ICICI






If these banks maintain their respective buckets CCB then they will be DSIB.










HDFC is also a DSIB now.

FINANCIAL AWARENESS - BUDGET BASICS

FINANCIAL AWARENESS - BUDGET BASICS 

 

BUDGET

World Budget -1^st introduced by Sir Robert Valpaul -1733

A list of Revenue and Expense from French word –Bougette Purse

In 07/04/1860 introduced BUDGET in India.

Father of BUDGET- JAMES WILSON

Financial Year- 1^st April -31th March

RECEIPT

Revenue Receipt (Non-Refundable Recurring – Neither increase Liability nor decrease Assets)

Capital Receipt (Refundable or Non-Recurring – Either increase Liability or decrease Assets)

RECEIPT –

·         Revenue receipt

·         Capital receipt

Revenue Receipt:

Tax Revenue – Direct Tax (Income Tax) Indirect Tax (Sales Tax)

Non Tax Revenue-

·         Challan

·         Penalty

·         Licence

·         Dividend

·         Interest

Donation

Capital Receipt

Borrowing –World Bank, IMF

Disinvestment – GoI  PSU

Recovery of Loan –

State Govt. - Central Govt.

Direct Tax- Right to pay transfer (×)

Indirect Tax – Right to pay transfer

OUT FLOW-

EXPENDITURE

Planned

Revenue Expenditure (Salaries, Interest Payment, Govt. pay to RBI)

Capital Expenditure (Bridge, Road)

Non Planned

Natural Calamities

Subsidies

Defence

L.K.Jha committee in 1867 Report changes the FY( 1 May -30 April ).

Railway Budget was separated from general budget in 1924 on recommendation of Acworth’s Committee.

 Morarji Desai – present Budget –maximum time

10 times (8 general, 2 interim) present on 1964-1968

on his Birth Anniversary -29 Feb.

The Union Budget of Independent India

1947- R.K. ShanMukhan Shetty

John Mthai - Ist after Republic India.

1950-51 Budget FM – John Methai announced the creation of Planning Commission.

Article 112 – of commission require the Government to present “Statement of Estimated Receipt and Expenditure” in parliament in respect to every FY.

Annual FY Report

·         Consolidated Fund

·         Contingency Fund (Natural Disaster)

·         Public Account Fund( Liability)

Before 1997, there is Budgetary Deficit

E-R Deficit is taken RBI

GoI don’t repay it (Setoff)

then after 1997

Fiscal Deficit

Expenditure –Receipt – So GoI has to pay interest.

Interim Budget

It is prepared in case of special situation, like Natural Calamity and War etc.

This is valid only for 6 months, Revenue is not specified only expenditure as specified for a FY.

DEFECIT:

1.    REVENUE DEFECIT (RD): RE-RR

2.    BUDGETRY DEFECIT (BD): TE –TR

3.    FISCAL DEFECIT (FD): BD + Borrowing + Other Liability

4.    PRIMARY DEFECIT (PD): FD –Interest Payment

BUDGET

·         OUTCOME BUDGET – Feedback from last FY

·         ZERO BUDGET          – New Budget

·         GENDER BUDGET    – Women Empowerment

****

Budget can be divided into two parts

• Receipt
• Expenditure

Receipt

Revenue receipts – Receipts from the following sources:

(a) Direct and indirect taxes

(b) Interest

 (c) Dividends

 (d) Profits from investments

(e) Fees and other receipts from services rendered by the Govt.

Capital receipts – Receipts from the following sources:

 (a) Loans raised from the market

 (b) Borrowing from RBI

 (c) External assistance from the foreign government.

 (d) Recoveries of loans and advances.

Expenditure

Revenue expenditure –These are expenses incurred for the

(i)  Normal running of the Govt. departments

 (ii) Interest charges on debt and subsidies.

Capital expenditure – It is the expenditure incurred on

(i) Acquisition of assets and investments

(ii) Loans and advances to State governments.

Balanced Budget: If the estimated receipts (revenue and capital both) are equal to the estimated expenditure, then it is a Balanced Budget.

Balanced Budget= Estimated Govt. Receipts = Estimated Govt. Expenditure

Unbalanced Budget: When the expected revenue is not equal to the estimated expenditure, in this case, the budget is unbalanced. 

Surplus Budget:

When estimated income exceeds estimated expenditure i.e. when the government estimated receipts are more than the government expected expenditure in the budget, then it is called a surplus budget.

Deficit Budget:

When estimated expenditure exceeds estimated income i.e. when the government expected expenditure are more than the government estimated revenue in the budget, then it is called a deficit budget.

Types of Budget

1. Zero Budget – When the budget is prepared every year on the assumption that there was no budget in the past. Each item in the budget is allocated on the merits rather than with reference to the allocation made in the previous years.

2. Outcome Budget –

It is a system of performance budgeting by Ministries handling development programmes. It comprises scheme /project –wise outlays for all central ministries department and organizations. It was first made in 2005 -06.

3. Gender Budget– 

Its objective is to mainstream gender perspective in all sectoral policies and programmes, in order to create enabling environment for gender justice and empowerment of women. Gender Budget was first introduced in India 2005 -2006. 

Deficit

• Budget Deficit = Total Expense – Total Receipt 
• Revenue Deficit = Revenue Expense – Revenue Receipt 
• Fiscal Deficit = Total Expense – Revenue Receipt + Non–debt creating Capital Receipt (Borrowings)

 IMPORTANT FACTS:

• Mr. Morarji Desai presented the budget ten times, the most by any Finance Minister.
• India’s first budget was presented on February 18, 1860, by James Wilson, a Finance Member of the India Council.
• Initially, the Railway budget was part of the general budget. On the basis of recommendations Acworth Committee, the Rail Budget was separated in 1924.
• The first budget of Independent and united India was presented by John Mathai in 1949-50.