Daily GK Updates : 26/9/2014

Daily GK Updates : 26/9/2014

1.    G-4 countries meet in New York to discuss Security Council reform

i. G-4 countries have underscored their continuous commitment to a Security Council reform which should be reflective of the geopolitical realities of the 21st century. The G-4 Foreign Ministers of India, Brazil, Germany and Japan met in New York on the margins of the 69th Session of the United Nations General Assembly to exchange views on Security Council reform.

ii. They agreed that the difficulties of the Security Council to effectively address current international challenges are a compelling reminder of the urgent need for a Security Council reform which makes it more broadly representative, efficient and transparent.
iii. They said, it will further enhance its effectiveness and the legitimacy and implementation of its decisions.
iv. The Ministers voiced their concern that, 70 years after the foundation of the United Nations, 50 years after the first and only time that the Security Council was reformed, discussions are still at a stalemate. 

2.    Public Sector Banks require 26–37 billion US dollars to meet Basel-III norms: Moody

i. Global rating agency Moody 2014 released a report titled Indian Banks Could Need 26-37 billion US dollar in External Capital for Basel III Compliance.

ii. In the report it revealed that 11 Indian public sector banks (PSBs) need to raise 26 to 37 billion US dollar in external capital in the financial year 2015 in order to meet the Basel-III capital adequacy norms by financial year 2019.

iii. This projection of Moody is based on the assumption that there is a moderate recovery in India's GDP growth, and a gradual decline in nonperforming loans from current levels.

Main highlights of the report
i. In rupee terms these banks will require additional 1.5 to 2.2 trillion rupees to fully comply with the Basel-III norms.
ii. A significant part of the required capital, around 800 - 900 billion rupees (or 13-15 billion US dollars) could be in the form of Additional Tier 1 (AT1) capital. 
 Moody's notes that these PSBs constitute 62 percent of the net loans in the Indian banking system but barely meet the current minimum capital requirements. As a result PSBs will find it difficult to raise capital quickly in the current environment.

Basel-III Norms
Basel III raises the minimum required capital levels for both Tier 1 capital to 7.0 percent and Common Equity Tier 1 (CET1) capital to 5.5 percent. Besides, the banks will also need to meet a Capital Conservation Buffer in order to pay dividends. These will be pressurizing the Indian public-sector banks due to low capital levels remain a key credit weakness.

3.    RBI released Gopalakrishna Committee report on Capacity Building in Banks and non-Banks

i. The Reserve Bank of India released Gopalakrishna Committee report on Capacity Building in banks and non-banks.  The committee has recommended a 360-degree feedback for a transparent and comprehensive performance assessment exercise, one that ensures adequate performance differentiation between employees.

ii. The committee was constituted with an objective to implement non-legislative recommendations of the Financial Sector Legislative Reforms Commission (FSLRC) relating to capacity building in banks and non-banks, streamlining training intervention and suggesting changes thereto in view of ever increasing challenges in banking and non-banking sectors.

The key recommendations of the Report include and pertain to:
• Approach to capacity building in banks and non-banks
• Enhancing Human Resources Management practices
• Creation of position of Chief Learning Officer in banks and concept of return on learning
• Strategies for addressing issues of replacement or replenishment of talent in banks
• Process and steps for skill development

4.    GST implementation from April 2016

 As negotiations with states on GST enter a critical stage, the Centre is looking forward to implementation of the new indirect tax regime from 1st April 2016.

 The deadline for actual implementation of GST from April 1, 2016, would be feasible. It all depends on how quickly we are able to reach consensus on critical issues," Revenue Secretary Shakti Kanta Das said at an event in New Delhi on Saturday. 
iii. The Goods and Services Tax (GST) regime aims at subsuming most of the indirect taxes at the central as well as state level. 

iv. The UPA government in 2011 introduced a Constitution Amendment Bill in the Lok Sabha to pave the way for introduction of GST. 
v. The GST which has been pending since 2006, is stuck at a crucial stage where states have proposed to keep products such as petroleum, tobacco and alcohol out of GST ambit and had demanded the exemption list be included in the Constitutional Amendment Bill. 

5.    UN Climate Change Summit 2014 held in New York

i. UN Climate Change Summit 2014 was held at UN headquarters in New York on 23 September 2014 to put the planet on course towards reversing global warming.

ii. The purpose of the 2014 Climate Summit was to raise political momentum for a meaningful universal climate agreement in Paris in 2015. Moreover, it aimed to galvanize transformative action in all countries to reduce emissions and build resilience to the adverse impacts of climate change.

iii. Hollywood star Leonardo DiCaprio was also present on the UN summit on climate change.  UN Secretary General Ban Ki-moon hosted the summit of all 120 leaders.

6.    Union Government launched Deen Dayal Upadhyaya Antyodaya Yojana for urban and rural poor

i. Union Government Deen Dayal Upadhyaya Antyodaya Yojana for urban and rural poor. The Yojana aims at alleviating urban and rural poverty through enhancement of livelihood opportunities through skill development and other means.

ii. Deen Dayal Upadhyaya Antyodaya Yojana has two components one for urban India and other for rural India.

Main Highlights of the Urban Scheme 
The scheme will focus on
i. Imparting skills with an expenditure of 15000 rupees to 18000 rupees on each urban poor
ii. Promotion of self-employment through setting up individual micro-enterprises and group enterprises with interest subsidy for individual projects costing 2lakhs rupees and 10 lakhs rupees for group enterprises. Subsidized interest rate will be 7 percent.
iii. Training urban poor to meet the huge demand from urban citizens by imparting market oriented skills through City Livelihood Centres. Each Centre would be given a capital grant of 10 lakhs rupees.
iv. Enabling urban poor form Self-Help Groups for meeting financial and social needs with a support of 10000 rupees per each group who would in turn would be helped with bank linkages.
v. Development of vendor markets besides promotion of skills of vendors
vi.  Construction of permanent shelters for urban homeless and provision of other essential services.

Main Poins of the Rural Scheme
i.  The Yojana aims at training 10 lakh (1 million) rural youths for jobs in three years, that is, by 2017.
ii. The minimum age for entry under the Yojana is 15 years compared to 18 years under the Aajeevika Skills Programme.
iii. Skill development training centres to be launched so as to address the unemployment problem in the rural area.
iv. The skills imparted under the Yojana will now be benchmarked against international standards and will complement the Prime Minister’s Make In India campaign.
v. The Kaushalya Yojana will also the address the need for imparting training to the differently-able persons and chip in private players including international players to impart the skills to the rural youths.

Note: i.  The Urban component will be implemented by the Union Ministry of Housing & Urban Poverty Alleviation  

ii. Rural component named as Deen Dayal Upadhyaya Grameen Kaushalya Yojana will be implemented by the Union Ministry of Rural Development.

7.    SBI, ICICI allowed kids to operate bank accounts independently

i. State Bank of India (SBI) and Industrial Credit and Investment Corporation of India (ICICI) allowed kids to operate bank accounts independently.
ii. The bank account is available for all kids above 10 who can sign uniformly. A uniform signature is a prerequisite since the banks are not making any allowance in signature variation for children and cheques can be returned where signatures do not match.
iii. On 5 September 2014, SBI had launched new accounts Pehla Kadam and Pehli Udaan for kids.
iii. Now, ICICI Bank has launched Smart Stars account and Federal Bank Limited has Young Champ Account for minors.

iv. Further, ICICI Bank has imposed a debit transaction limit of 50000 rupees annually for minor-operated accounts. If the account is operated with a guardian's consent, the annual limit is enhanced to 2 lakh rupees.
v. The banks are offering full-fledged services to minors, including photo debit cards and access to mobile and net banking.
vi. These minor-operated accounts were allowed by the Reserve Bank of India in May 2014 to inculcate savings behaviour among the young. 
vii. The only condition was that minors should not be given any overdraft or credit facility.

8.    MT Vasudevan Nair selected for 2013 JC Daniel Award of Kerala Government

i. Noted writer and filmmaker Madathil Thekkepaattu (MT) Vasudevan Nair was selected for the JC Daniel Award for lifetime achievement for the year 2013. The award given by the Kerala government recognises the overall contribution of MT to the Malayalam film industry. 
ii. He will be presented with the award at a function on 17 October 2014 at Kanakakunnu Palace in Thiruvananthapuram, Kerala. 
iii. He was selected for the award by a jury headed by noted writer and Malayalam University Vice-Chancellor K Jayakumar.

9.    Rajat Sharma appointed as the president of News Broadcasting Association

i. India TV chairman and editor-in-chief Rajat Sharma on 24 September 2014 was appointed as the new president of the News Broadcasting Association (NBA) for the year 2014-2015.
ii. Rajat Sharma will replace KVL Narayan Rao who was the president of NBA for four consecutive years. However, Rao will remain a member of NBA board.
iii. Anurradha Prasad was named as the new honorary treasurer of NBA. Meanwhile, Ashok Venkatramani will continue to be the vice president of NBA.

10.  US to pay 500 million US dollar in compensation to Native American Navajo tribe

i. The US government will pay more than $500 million to the Native American Navajo tribe in the US southwest, ending decades-old disputes over use of their land, officials said Wednesday.

ii. In return, the tribe will not claim lawsuits over US management of Navajo resources and funds.

iii. The sum is the largest ever paid by the United States to a single tribe, according to The Washington Post.

iv. This historic agreement resolves a longstanding dispute between the United States and the Navajo Nation, including some claims that have been sources of tension for generations," Attorney General Eric Holder said in a statement sent to AFP.

v. Half of all Navajo land is rented out for agricultural and forestry purposes, oil and gas production, and mineral extraction, among other uses.

Note: i. The Navajo reservation, straddling the western states of Arizona, New Mexico and Utah, is the largest in the United States, covering around 70,000 square miles (181,299 square kilometers).

ii. "This landmark resolution ends protracted and burdensome litigation. It will provide important resources to the Navajo Nation. And it fairly and honorably resolves a legal conflict over the accounting and management of tribal resources," Holder said.

iii. The Navajos are the largest indigenous tribe in the United States with more than 300,000 members.

11.  Edward Snowden and Alan Rusbridger won Right Livelihood Award 2014

i. Former U.S. spy agency contractor Edward Snowden and Alan Rusbridger, editor of The Guardian on 24 September 2014 won Right Livelihood Award. The award was shared between the two.
ii. Edward Snowden was awarded for his courage and skill in revealing the unprecedented extent of state surveillance violating basic democratic processes and constitutional rights. While, Alan Rusbridger, was awarded for writing extensively on government surveillance, based on leaks of Edward Snowden.

Note: The Right Livelihood Award is also known as Alternative Nobel prize of Sweden.

About Right Livelihood Award:i. The Right Livelihood Award was established in 1980. 
ii. The award was given to honour and support those offering practical and exemplary answers to the most urgent challenges facing us today.
iii. The prize money is shared among the winners, usually numbering four, and is EUR 200000. Very often one of the four laureates receives an honorary award, which means that the other three share the prize money.

12.  Suresh Parbhu selected as PM’s Sherpa for G-20 summit

i. Suresh Prabhu on 23 September 2014 was appointed as Prime Minister Narendra Modi’s Sherpa for the Group of 20 annual Summit 2014. He was selected by the Prime Minister Narendra Modi.

ii. The G-20 annual summit will be held in Brisbane from 15 November to 16 November 2014.

iii. Suresh Prabhu will attend the G20 Sherpa’s meeting that is going to be held in Canberra, Australia from 30 September to 1 October 2014. Sherpa is a senior official responsible for preparing the agenda for leaders to consider during the summit.

13.  Emami biotech acquired Vanaspati brand Rasoi

i. Emami biotech acquired Vanaspati brand Rasoi. Emami biotech is the edible oil and bio-diesel arm of the Emami Group of Companies.
ii. The deal is estimated to be worth around 20 crore rupees. This is Emami's second acquisition in three months and with this deal Emami makes entry into vanaspati segment.
iii. The acquisition will be an addition to the Company’s existing portfolio of edible oil brands such as Emami Healthy & Tasty and Himani Best Choice.

14.  Forbes India released The 100 Richest Indian List 2014

i. The Forbes India magazine releasedThe 100 Richest Indian List 2014 on 25 September 2014. As per the list, the top 100 richest tycoons in India are all billionaires for the first time. The combined net worth of 100 richest tycoons in India is 346 billion US dollars in 2014 up more than a third from 259 billion US dollars in 2013.

ii. According to the Forbes India List, the Top 10 Richest people of India:

1. Mukesh Ambani; 2. Dilip Shanghvi; 3. Azim Premji; 4. Pallonji Mistry; 5. Lakshmi Mittal; 6. Hinduja brothers;

7. Shiv Nadar; 8. Godrej family; 9. Kumar Birla; 10. Sunil Mittal

Highlights of the Forbes India Rich List 2014

i. Mukesh Ambani topped the list for the eighth consecutive year with a net worth of 23.6 billion US dollars.

ii. Dilip Shanghvi, founder of Sun Pharmaceutical Industries, is at the second position on the list. He overtook steel baron Lakshmi Mittal who slipped to fifth place.  

iii. Azim Premji whose net wealth increased to 16.4 billion US dollars from 13.8 billion US dollars is at third position.

iv. The biggest dollar gainer is Gautam Adani who jumped 11 spots to eleventh position adding nearly 4.5 billion US dollars to his wealth which reached 7.1 billion US dollars.

v. As many as 85 people out of 89 who returned to the top 100 from 2013 are wealthier and several are billionaires for the first time.

15.  Former British PM Tony Blair named "gay icon"

i. Former British Prime Minister Tony Blair was named one of the top "gay icons" of the last thirty years on Friday in recognition of his work for gay rights.

ii. Gay Times magazine awarded the politician the accolade in an edition marking the newspaper`s 30th anniversary.

iii. Blair, 61, won a landslide victory in a 1997 general election, and was the head of a left-leaning Labour Party government for the next decade.

16.  Maharashtra CM Prithviraj Chavan resigns

i. Maharashtra chief minister Prithviraj Chavan has resigned  after the Nationalist Congress Party withdrew support to his Congress-led government on Thursday.

ii. Chavan submitted his resignation letter to the governor on Friday evening as the opposition BJP stepped up pressure that president's rule be imposed in the state.

iii. Governor C Vidyasagar Rao is reportedly seeking legal advice, after the BJP upped the pressure saying the Congress government in the state did not have a majority any longer after splitting with the NCP.

iv. The Assembly elections in the state are scheduled for October 15.

17.  Cricketers Sachin Tendulkar & Steve Waugh selected as 2014 Bradman Honouree

i. Cricketer Sachin Tendulkar and Steve Waugh of Australia were selected as Bradman Honouree 2014. It was announced by The Bradman Foundation on 22 September 2014. They will be honoured at the Gala Dinner of the Bradman Foundation on 29 October 2014 in Sydney.

ii. Sachin Tendulkar was selected for Bradman Honouree because he has scored more Test runs than any other cricketer in history and bestrode the international cricket stage for 24 years.

About Bradman Honourees : The Bradman Foundation, a non profitable organisation was established in 1987 with the support of Sir Donald Bradman. It was established to promote cricket as a valuable cultural and sporting force within the community.

Every year two Bradman Honourees were selected for their significant