Table of Contents
Reality check
• Financial Stability Report
• Worst is far from over
• Gross non-performing assets (GNPAs) of scheduled commercial banks in the country could rise from 11.6% in March 2018 to 12.2% in March 2019
• Highest level of bad debt in almost two decades
• NPA crisis: affected the banking system and impeded credit growth in the economy
• This will increase the size of provisioning for losses and affect the capital position of banks.
• Rising external risks: tightening of monetary policy by the United States Federal Reserve
• Increase in commodity prices
• Major highlight: PSBs are far more prone to fraud
• The RBI notes that more than 85% of frauds could be linked to PSBs, even though their share of overall credit is only about 65%.
• This should come as no surprise given the serious corporate governance issues faced by public sector banks, which to a large extent also contributed to the lax lending practices that are at the core of the NPA crisis.
• RBI Deputy Governor Viral Acharya : governance reforms at PSBs, if implemented, can help improve their financial performance and also reduce their operational risks.
Recapitalisation plan
Insolvency and Bankruptcy Code
Operational autonomy
Encouraging mediation to settle disputes
• India will participate in deliberations at the United Nations Commission on International Trade Law (UNCITRAL) in New York.
• Important issue concerning resolution of commercial disputes.
• NOTE: Commercial disputes are resolved not only through courts and arbitration but also through mediation.
• AIM: The deliberations will consider how these settlement agreements in disputes in international commercial transactions will be implemented by courts in different countries.
IMPORTANT FOR INDIA AND ITS BUSINESSES
1. Mandatory pre-litigation mediation has been introduced in commercial disputes.
2. India has lost substantial earnings as a result of international disputes being taken for resolution outside the country.
3. Strengthening the dispute resolution policies will encourage dispute resolution in India, where the commercial relationship once began.
• International transactions involve the application of different laws, by virtue of the persons from different countries being involved, or their undertaking a business in a third country.
• The convention will link laws adopted by countries to recognise domestic mediation and extend them beyond their boundaries.
• The convention is opportune and will facilitate legal reform to ease dispute resolution.
Ujjwala revolution
• Completed 2 years of operation.
• LPG connections has crossed 4 crore, and LPG penetration in India has risen from 56% in 2014 to 80%.
• Greater challenge for the mission lies in refills.
• Interactions with PMUY subscribers suggest that they focus on the value that LPG generates for them and not on its cost.
• Narayani from Chhattishgarh is now able to find time to stitch blouses and bags.
• Reena Rudrapal from Tripura makes idols.
• We also observe benefits such as customers being able to devote more time towards children, the elderly and sick, along with reduced drudgery and gains in health.
• Pradhan Mantri LPG Panchayat
• LPG distributors across India: 20,227
Caution against shaming
• Image of a breastfeeding woman on the cover of Grihalakshmi, a leading women’s magazine in Malayalam
• Dismissing a writ petition claiming that the image was obscene, insulting to women and in violation of child rights, the judges explicitly stated that these claims
were unfounded.
• Many battles were fought in Malayali society of the early twentieth century (and before) over the exposure of the upper body.
• Women in Kerala did breastfeed openly for the larger part of the twentieth century, this practice has faded.
• It is seen to be maternal — distinguished clearly from the sexual.
From little to zero tolerance
• Heartrending scenes at the southern border of the U.S.
• Children, some as young as seven months old, are shown being torn from their parents’ arms and sent into detention without their parents being informed of their whereabouts.
• United Nations: “may amount to torture.”
• Police brutality towards children and the separation of children from their parents is nothing new in the U.S.
• History of conquest and slavery
• ‘SCHOOL TO PRISON PIPELINE’
• $549 in 2014
• U.S. Federal Reserve estimates that 46% of people in the country cannot raise $400 at short notice in an emergency.
• Separation being normalized in any society is dangerous.
• Specter of foreigners taking away jobs is self created one.
Important News
• Trouble brewing in Bihar alliance
• ‘No-fly list has cut down unruly flyers’
• Shujaat Bukhari’s killers being identified
• U.S. postpones 2+2 dialogue with India
• The much anticipated dialogue, between the defence and foreign ministers of India and the United States scheduled for July, has been postponed.
• The Ministry of External Affairs said the message postponing the talks came from
the U.S. Secretary of State Mike Pompeo, even as U.S. President Donald Trump’s
ambassador to the United Nations, Nikki Haley, met Prime Minister Narendra Modi
here on Wednesday.
• Mr. Pompeo spoke to External Affairs Minister Sushma Swaraj and expressed regret.
• Canadian national raped in Capital, accused arrested
• Centre may scrap UGC, proposes new regulator
• The government is set to replace the apex higher education regulator, University Grants Commission (UGC), with a higher education commission by repealing the UGC Act, 1951.
• SC leaves ED official case to Centre
• Nepal welcomes ‘2+1’ dialogue mechanism
• Trump to meet Putin in a third country
• Cabinet okays ₹2,000-cr. capital infusion for export guarantor across FY2017-20
• The Cabinet Committee on Economic Affairs on Wednesday approved a capital
infusion of ₹2,000 crore into the Export Credit Guarantee Corporation (ECGC) to
be infused over the three financial years 2017-20.
• “The infusion would enhance insurance coverage to MSME exports and strengthen
India’s exports to emerging and challenging markets like Africa, CIS and Latin
American countries,” the government said in a release.
Answers-
1. Which nation has begun its first vaccine campaign against cholera?
A) Syria
B) Yemen
C) Sudan
D) India
2. India signed an agreement in the field of Renewable Energy with which South American nation?
A) Argentina
B) Chile
C) Peru
D) Colombia
Questions-
1. The United Nations Development Programme would be setting up a skill development centre in which city?
• Hyderabad
• Ranchi
• Chennai
• Bengaluru
2. The Supreme Court upheld the order passed by which court while ruling that women can file complaint against ex-husband for cruelty even after divorce?
• Bombay High Court
• Delhi High Court
• Madras High Court
• Rajasthan High Court
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