Download July Current Affairs Pdf 2014

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22:53 - By Unknown 0

13th August 2014 - Daily Current Affairs updates

13th August 2014 - Daily Current Affairs updates

National Affairs

• With an aim to reduce transaction time at booking counters and  to provide more hassle-free services to railway users, the Minister of Railways, Shri S.D.Sadananda Gowda launched 'Go India' smart card' to enable passengers to pay for tickets for long or short distance journeys in reserved and unreserved class including suburban service.
• The average annual cost of maintenance of each flat in North and South Avenues meant for Members of Parliament is Rs 2.95 lakhs, Lok Sabha was informed today.
• The Lok Sabha today passed the Constitutional Amendment Bill to scrap the collegium system of appointing Supreme Court and High Court judges and cleared the National Judicial Appointments Commission Bill 2014 to regulate the procedure.
• The University Grants Commission (UGC) is implementing a number of schemes for educational empowerment of SCs, STs and minorities that include setting up of equal opportunity cells and scholarships.
• A Constitution Amendment Bill to facilitate establishment of a Commission to appoint judges to higher judiciary was moved tonight for consideration in the Rajya Sabha, hours after its passage in the Lok Sabha.

International Affairs

• Palestinian Foreign Minister Riyad al-Maliki today said that a probe by the UN Human Rights Council will prove that Israel committed war crimes and violated humanitarian law during its Gaza offensive.
• Iraq's Prime Minister Nouri al-Maliki today said that he will not relinquish power until a federal court rules on what he called a "constitutional violation" by the president to replace him with a member of his own party.

Awards & Honors

• An Iranian-born mathematician Maryam Mirzakhani, has become the first woman to win a prestigious global prize known as the Field Medal, the International Congress of Mathematicians has announced.
• She has previously won the 2009 Blumenthal Award for the Advancement of Research in Pure Mathematics and the 2013 Satter Prize of the American Mathematical Society.
• Along with Maryam Mirzakhani, two mathematicians of Indian origin, Manjul Bhargava and Subhash Khot have also won this prestigious award (a total of 8 winners were there). 
• These Awards were announced at the inaugural of the 9-day International Congress of Mathematicians (ICM) which began today at Seoul, Republic of Korea. The President of Korea, Park Geun-hye, gave away these awards.

Deaths

• Legendary actor Lauren Bacall (89), an icon of Hollywood’s golden age who lit up the silver screen in a series of classic movies opposite her husband Humphrey Bogart passed away.

New Appointments

• M Thambidurai, leader of AIADMK in Parliament, was unanimously elected as Lok Sabha's Deputy Speaker today, making him the first leader to occupy the post twice.
• Justices Abhay Manohar Sapre, R Banumathi, Prafulla Chandra Pant and Uday Umesh Lalit today assumed charge as Supreme Court judges, taking the apex court's strength to 30, including Chief Justice R M Lodha.

Science & Technology

• For the second day in a row, India on Wednesday successfully conducted trial of its indigenously developed surface-to-air 'Akash' missile, which has a strike range of 25 km, from a test range in Odisha as part of a user trial by the Air Force.

Sports

• The first bat and other playing gear and memorabilia of Donald Bradman - arguably the greatest batsman ever - will be showcased at an exhibition at the iconic Victoria Memorial Hall in Kolkata in 2015.

22:46 - By Unknown 0

Important Details you should know about International Monetary Fund (IMF)

International Monetary Fund (IMF)

The International Monetary Fund (IMF), also called as the Fund, is an international institution established by 44 nations under the Bretton Woods Agreement (you can check details of it below this post)) of July 1944. The IMF was established to promote economic and financial cooperation among its members in order to facilitate the expansion and balanced growth of world trade. It started functioning from 1st March 1947 (formally formed on 27th December 1945). At present, 188 nations are members of the IMF. South Sudan became the newest member on 18th April 2012.

Objectives of IMF

1. Promotion of International Monetary co-operation.
2. Facilitate the expansion and balanced growth of international trade and to contribute thereby to the promotion and maintenance of high levels of employment and real income and to the development of the productive resources of all members as primary objectives of economic policy.
3. Promotion of exchange rate stability and avoidance of competitive currency depreciation.
4. Expansion of international trade by removal of all exchange controls and restrictions and provide for multilateral convertibility of expediencies.
5. To help member countries with fund during the periods of temporary difficulties in respect of balance payments. 

What is Bretton Woods Agreement ?
This is an agreement which was signed at the Bretton Woods Conference (formally known as the United Nations Monetary and Financial Conference), a gathering of 730 delegates from all 44 Allied nations at the Mount Washington Hotel, situated in Bretton Woods, New Hampshire, United States, to regulate the international monetary and financial order after the conclusion of World War II. This agreement leads to the establishment of IMF (International Monetary Fund) and IBRD (International Bank for Reconstruction and Development).


During the World War II, almost all the countries involved in the war directly or indirectly introduced and practiced a rigorous system of exchange controls.

With the establishment of the IMF under the Bretton Woods Agreement after world war II, exchange rates between countries were set or pegged in terms of gold or the US dollar at $ 35 per ounce of gold. This related to a fixed exchange within a band of one percent. But this was only allowed when the country could convince the IMF authorities that there was a fundamental disequilibrium in its balance of payments. This system is known as Bretton Woods System.

The Bretton Woods system collapsed in 1971 when US dollar was made as in-convertible into gold at the Federal Reserve System.

The Jamaica Agreement of January 1976 formalized the regime of floating exchange rates under the auspices of the IMF. A number of factors forced the majority of member countries of the IMF to float their currencies.

By the Second Amendment of the IMF charter in 1978, the member countries are not expected to maintain and establish par values with gold or dollar. The system of floating exchange rates is not one of free flexible exchange rates but managed floating.

Fast Facts on the IMF

• Head Quarters : Washington, D.C., United States
• Managing Director : Christine Lagarde
• Current Membership : 188 Countries

1. Founding Countries - 29
2. Member Countries - 188

• Newest Member : South Sudan on 18th April 2012
• Staff - 2,400 (approx)

22:41 - By Unknown 0

12th August 2014 - Daily Current Affairs updtes

12th August 2014 - Daily Current Affairs updtes

National Affairs

• The Bombay High Court today banned participation of children below 18 years in forming human pyramids during the popular Dahi Handi festival. 
• Today is the birth anniversary of father of India's space programme and Indian physicist Dr.Vikram Sarabhai‬.
• Prime Minister, Narendra Modi, today laid the foundation stone for Leh-Kargil-Srinagar transmission system. He also dedicated the 45 MW Nimoo Bazgo Hydroelectric Project to the nation.
• Narendra Modi today came down strongly on Pakistan for its “proxy war of terrorism” against India as he announced new funds and development projects during a day trip to Kashmir.
• To prevent incidents of violence, Assam government has been advised to take strict security measures, including seizure of illegal weapons, Lok Sabha was informed on Tuesday. 
• What happened ? 46 people lost their lives in May following violence in Baksa and Kokrajhar districts of Assam. 
• Tamil Nadu Assembly on Tuesday unanimously passed a bill making enforcing dress code and banning entry of persons wearing ‘dhoti’ in public places a cognizable offence punishable with jail term.
• In a move that will help families whose kin have passed away abroad, government introduces an online system that will enable them track the transportation of the mortal remains.
• Delhi's Dwarka Sector-21 metro station’s platform number 2 was lit up by energy produced from solar panels placed on the roof of the station. This officially marked the commissioning of the country’s first solar power plant at a metro station. 

International Affairs

• Italian Premier Matteo Renzi today spoke to his Indian counterpart Narendra Modi and sought a "rapid and positive solution" in the case of the two Italian marines being held in India for allegedly shooting to death two Indian fishermen in 2012.
• The US has continued with its two-pronged mission in Iraq, hitting the Islamic State of Iraq and the Levant (ISIL) targets and providing humanitarian aid to thousands of people stranded on Mount Sinjar.  
• The EU's anti-fraud office Today urged Gibraltar and Spain to launch legal action after it found signs that organised crime was behind a rise in cigarette smuggling in southern Spain. 
• The UN has named three experts as members of an independent inquiry commission that will probe possible human rights violations and war crimes committed, particularly in the Gaza Strip, during the recent conflict between the Israelis and the Palestinians.
• Amal Alamuddin - London-based British-Lebanese human rights lawyer
• William Schabas - Professor of international criminal law 
• Doudou Diene - United Nations Special Rapporteur on contemporary forms of racism

Awards & Honors

• Arun Jaitley conferred with Outstanding Parliamentarian Award (2010)
• Dr. Karan Singh conferred with Outstanding Parliamentarian Award (2011)
• Sharad Yadav conferred with Outstanding Parliamentarian Award (2012) 

Business & Economy

• In an attempt to ensure plurality of news and views, broadcast regulator Trai today suggested restriction on political bodies and corporates entering the television and newspaper business.  
• Britannia Industries Ltd (BIL) is looking at an entry into Bangladesh and Sri Lanka. The company which makes biscuits, cakes and rusk, is also planning to launch a disruptive product within this year.

Deaths

• Actor Robin Williams dead at 63 in apparent suicide bid.

Books & Authors

• Samanth Subramanian -  This Divided Island (this is his second book. his debut was a travelogue titled Following Fish)
• "This Divided Island" explores the grave issues of post-war #SriLanka through a narrative history of the country’s residents

11:02 - By Unknown 0

11th August 2014 - Daily Current Affairs updates

11th August 2014 - Daily Current Affairs updates


National Affairs

• Assam Chief Minister Tarun Gogoi, who also holds the finance portfolio, presented Rs. 1385.77 crore deficit budget for the state today. 
• Sikkim has become the most favoured destination of foreign tourists in the north-eastern states of the country.

1. 2011 - 23,602 tourists
2. 2012 - 26,489 tourists
3. 2013 - 31,698 tourists

• Ignoring strong opposition from Congress, Government today withdrew in Rajya Sabha UPA's bill for making judicial appointments and promised to replace it with a new and comprehensive one as other opposition parties supported the move.  
• Union Law Minister Ravi Shankar Prasad on Monday tabled the Judicial Appointment Commission Bill in Lok Sabha. The new Bill will replace the existing Collegium system when it comes into effect.

International Affairs
France, in consultation with its EU partners, is looking at supplying arms to Iraq's Kurds to fight against Islamic State jihadists, Foreign Minister Laurent Fabius said today.
Turkish Prime Minister Recep Tayyip Erdogan said his country has started to evacuate wounded people from Gaza to Turkey for treatment.


New Appointments

• Turkish Prime Minister Recep Tayyip Erdogan today won an outright victory in the first round of presidential elections, promising to be a powerful head of state amid fears his country is creeping towards one-man rule.
• Iraq's new president Fuad Masum today snubbed the powerful incumbent Prime Minister Nouri al-Maliki and nominated the deputy parliament speaker Haider al-Abadi to form the new government, raising fears of more infighting in the government as country faces the threat of Sunni militants in the north.

Awards & Honors

• President Pranab Mukherjee will give away outstanding Parliamentarian Award to senior BJP leader Arun Jaitley (for 2010), Congress veteran Karan Singh (for 2011) and Janata Dal (United) chief Sharad Yadav (for 2012) tomorrow at a function.

Business & Economy

• Tata-SIA Airlines on Monday announced that its proposed airline will be called Vistara. 
• What is Vistara ?

Vistara is derived from the Sanskrit word, which means limitless expanse "and draws inspiration from the brand's domain - the limitless sky".  

• Prime Minister Narendra Modi will dedicate to the nation two hydel power projects in Leh and Kargil in Jammu & Kashmir tomorrow.
• RBI Governor Raghuram Rajan today said the financial inclusion drive, likely to be announced by Prime Minister Narendra Modi on August 15, will break the link between poor public services, patronage and corruption.

23:50 - By Unknown 0

IBPS Clerks IV : Online Application Link Activated

IBPS Clerks IV : Online Application Link Activated


Friends, the Institute of Banking Personnel Selection (IBPS) has activated the online application link for IBPS Clerks  IV Recruitment. You can apply from the official website of IBPS (ibps.in) from today (12th August 2014) to 1st September 2014. Check complete details below. 

Important Dates of IBPS Clerks CWE IV:
Online Registration Starts from : 12th August 2014 to 1st September 2014

•  Payment of Application Fee :

1. Online : 12th August 2014 to 1st September 2014
2. Offline : 14th August 2014 to 3rd September 2014

• Call Letter download for the examination : After 17th November 2014

• Dates of Online Exam (Tentative):

1. 6th December 2014
2. 7th December 2014
3. 13th December 2014
4. 14th December 2014
5. 20th December 2014
6. 21st December 2014
7. 27th December 2014

Declaration of Results : January 2015
Interview Call letter Download : January 2015
IBPS PO IV Interviews : February 2015
Provisional Allotment : April 2015


Check detailed notification of IBPS Clerks Recruitment 2014 from here

Apply online for IBPS Clerks IV from here

23:45 - By Unknown 0

Problems of Regional Rural Banks

Problems of Regional Rural Banks


Friends, in our last two lessons we've discussed about the Objectives and Functions of Regional Rural Banks. Today we shall discuss about the problems of Regional Rural Banks. As you know, RRBs have been established to attain very specific objectives. They were expected to replace private money lenders in the rural areas. There have been several shortcomings of the RRBs and problems they have faced.

• Expansion of RRBs was uneven in the country: As already observed in some states like U.P, Bihar, Madhya Pradesh and Andhra Pradesh had a higher proportion of RRBs operating. About 55 percent of all the branches of RRBs are situated in these states. 
• Accumulated Losses : RRB recovery rate was very poor. Most RRBs had mounting over dues. They had losses accumulated due to bad debts. Total number of accumulated losses as on 31st March 2014 are Rs. 1012 crore (However, this amount was Rs. 2752.25 in 2003 and 1532 in 2011).
• Many RRBs were not viable : They are financially weak, and their volume of business is small. Their average lending rate is about 11 percent. Higher cost of administration is partly due to their low volume of business. Viability status of RRBs is not uniform. A viability based review of RRBs shows that loss incurring RRBs are concentrated in four states namely Bihar, Orissa, Madhya Pradesh and Rajasthan. The Government should take some effective remedial steps to make Rural Banks viable.
• RRBs suffer from problems like limited area of operation narrow banking preference, low level of recovery in certain regions, difficulty in effecting recoveries under government sponsored programmes, HRD related issues etc.
• Non-Performing Assets are another major area of concern. 10 RRBs had gross NPA percentage of less than 2%, whereas 32 RRBs had it above 5%. At the all India level percentage of NPAs is 14.44. However, there are wide variations between regions. It was as high as 79.02% in Arunachal Pradesh and as low as 4.36% in Tamil Nadu.
• Quality of Lending was poor : Small borrowers had difficulty in understanding and fulfilling the procedural formalities that were many. Follow up supervision and monitoring the usage loans were inadequate. This also contributed to the problem of over dues. Frequent floods and drought conditions aggravate the problem.
• Various types of Interest Rates prevailing by multiple credit institutions operating simultaniously created problems
• Shared ownership : Capital of the RRBs was contributed by the Central, State Governments as well as the sponsoring banks. Shared ownership has resulted in multiple controls over the RRBs. RRBs were not properly managed. The boards of RRBs did not take much interest in the affairs of the banks. Nominations of the directors to the boards was often made on political considerations.

09:36 - By Unknown 0

Evaluation of RRBs - Assessment by Various Committees

Evaluation of RRBs - Assessment by Various Committees



The government and NABARD periodically set up various study groups and committees to evaluate the performance of the RRBs and make recommendations to improve their performance. We shall present some of the important recommendations.

• The Dantwala Committee (1978) : It suggested that the RRB's juridiction should be confined to one district. RRBs should be required to provide full banking facilities in the areas of operation. RRBs should be playing only a supporting role to cooperative banks. 
• Agricultural Credit Review Committee (ACRC 1989) : The Committee took note fo the serious organizational problems of RRBs on account of the continuous decline in profitability, poor recoveries and problems relating to management and staff. The Committee noted that major factors which contributed to the erosion of RRBs' profitability were lending exclusively to the weaker sections, low interest rate and margins and high operating costs involved in handling of small loans. They did not have any scope of cross subsidization in the absence of loans that could yield higher returns. Wilful defaults, misuse of loans, lack of follow-up, wrong identification of borrowers, extension fo benami loans, staff agitations etc. also led to poor recoveries in RRBs, noted the Committee. The objective of serving the weaker sections effectively could be achieved only by self-sustaining credit institutions. RRBs structurally are not the institutions that could fulfill this role. The Committee noted that the logic and rationale which justified the setting up of RRBs did no longer exist. The weakness of the RRBs are endemic to the system and non-viability is built into it. The Committee also explored the possibilities of improving enlargement of the share capital, provision of bad debt reserve, providing larger access to more resilient customers and even giving them a subsidiary status to the commercial banks. But on closer examination, these alternatives were found to be unsatisfactory as, in the opinion of the Committee, the RRBs did not solve the problems of effective service to the rural poor.
• Committee on Financial System (Narasimham Committee, 1991) : One of the problems of RRBs is improving their viability without sacrificing the basic objective for which they were set up. To impart viability to the operations of RRBs, they should be permitted to engage in all type of banking business and should not be forced to restrict their operations to the target groups. To improve their viability further, a mechanism be worked out under which the RRBs should be able to place their surplus funds with NABARD or with a special agency that might be set up for the purpose which should pay interest on such balances by investing or deploying these funds to the best advantage on behalf of RRBs. The solution lies in evolving a rural banking structure which would combine effectively the advantage of the local character of the RRBs and the strength and the organizational and managerial skills of commercial banks. The need is to establish a viable banking structure which could effectively meet rural credit needs. The Committee recommended that each public sector bank should set up one or more rural banking subsidiaries to take upon its all rural branches. It was left on the RRBs and their sponsored banks as to whether the RRBs should retain their separate identity or they should be merged with such rural subsidiaries. 
• Committee on Restructuring of RRBs (Bhandari Committee 1994) : Apart from identifying 49 RRBs for comprehensive restructuring, the committee made wide ranging recommendations relating, inter alia, to the appointment of Chairman / CEO, delineation of roles and responsibilities of supervising agencies of RRBs, staff matters, improving returns on SLR nd non-SLR investments and improving funds management, augmentation of share capital, expansion of the scope of business avenues, deregulation of interest rates and rationalization of branch licensing policy.
• Committee on Revamping of RRBs (Basu Committee, 1996) : Apart from identifying 68 RRBs for-restructuring under Second Phase, Basu Committee made certain recommendations on operational matters as well. Most important among them are,

1. Introduction of Prudential Norms for RRBs with a suitable modifications.
2. Need to redefine the role of shareholders of RRBs more precisely.

• Committee on Banking Sector Reforms (Narasimham Committee, 1998) : Banking system should be in a position to build a credit culture and discipline by equipping itself to identify the eligible clients, based on the prescribed norms, in the government sponsored schemes so that full responsibility for all aspects of credit decisions remains with it. This would also help improve the client-bank relationship instead of the present system of virtually imposed clientele. The supervisory functions over rural financial institutions have been entrusted to NABARD. While this arrangement may continue for the present, over the longer term the Committee suggested that all regulatory and supervisory functions over rural credit institutions should vest with the Board for Financial Regulation and Supervision. RRBs must rationalize and amend their loan policies and procedures so as to function as a development banker for the rural poor. RRBs must work in close coordination with the cooperative banks and rural branches of commercial banks to fill the credit gap in rural areas without any clash of mutual interests. 
• The Estimates Committee of Parliament of the Ministry of Finance, in its 16th report submitted to the Lok Sabha in April 2003, made the following main observations / recommendations on which NABARD advised RRBs to initiate suitable corrective / followup action and review the actions in their Board meetings. 

1. Interest on agricultural advances should not be compounded.
2. CD ratio should be stepped up by concentrating more on lending than on investments. 
3. Proper and separate record of lendings to small and marginal farmers should be maintained.
4. Concrete steps have to be initiated to improve their recovery performance. 
5. RRBs which do not adhere to guidelines have to be dealt with severely.
6. Internal systems and procedures and control measures to enhance effectiveness in sanctioning loans and advances and a system of post disbursement should be evolved.
7. RRBs in consultation with their sponsor banks have to draw time bound perspective training plans to cover all their staff.
8. Number of cases related to fraud / misappropriation of funds, have to be identified and action taken. 

• Chalapathy Rao Committee Government of India, June 2002 : With emphasis now laid by government of India in the entire range of financial services to be provided by RRBs that is necessary for the development of rural economy as a whole, there is need for widening the scope of their activities. Some of the important recommendations are :

1. In the process of strengthening the RRBs to shoulder greater responsibilities in rral economy, emphasis is placed on change of ownership pattern of RRBs. The present ownership pattern i.e., 50:15:35 between central government, state government and sponsor bank, is too rigit. In order to enable RRBs to stand on their own feet, pattern of ownership needs to be more flexible to enable the healthy RRBs access to capital markets. For the purpose of deciding the ownership pattern RRBs may be categorized into categories A, B, C & D depending upon their profit making abilities. 
2. Area of operation of RRBs may be extended to cover all districts hither to uncovered by the services of RRBs. It must be ensured that every socio-economic zone must have a strong and viable RRB. 
3. Capital adequacy norms may be introduced for RRBs in a phased manner.
4. Regulatory frame work for RRBs must be on the lines of those for commercial banks with provisions for bank specific relaxation as may be necessary for a specific time period. RRBs may also be subjected to statutory norms of licensing and each RRB should be required to obtain license from RBI under the Banking Regulation Act, 1949.
5. Self-supervisory system shuold be introduced to improve adherence to statutory and regulatory requirements, and internal policy guide lines, operation on risk management and assets liability management systems, transparency disclosures and various internal control measures.
6. In order to strengthen the RRBs to cater to the needs of the rural economy for all kinds of financial services, diversification of their business has to be encouraged without losing focus on fulfilling financial needs of the rural poor. They may be encouraged to develop their own customer segment specific products for deposits, term-investments, loans.
7. In tune with the changing environment and rising customer preference for technology driven services in banks, even in rural areas some of the RRBs may required to introduce automated services like multi-service credit / debit cards, smart cards, automated letter machines, touch screen services etc., at least in selected major branches. 
8. RRBs may be restructured on a three tier basis, consisting of head office, a district office / branches, and rural branches. Head offices should be concerned only with corporate policy and strategy, management of resources, institutional development district offices should be preoccupied with field work and rural branches with lending and recovery. 

09:31 - By Unknown 0

Regional Rural Banks - Structure and Functions

Regional Rural Banks - Structure and Functions



Friends, in our last post we have discussed about the Introduction and Objectives of Regional Rural Banks (Please read that post here before you proceed further). Today we shall discuss about the Structure and Capital of RRBs along with their functions and the major differences between Commercial Banks and RRBs.


Structure and Capital of Regional Rural Banks 
RRBs are basically sponsored banks. They are sponsored by scheduled commercial banks. At present, the authorized capital of an RRB is Rs. 500 Crores (initially it was Rs. 5 Crores but on 23rd April 2013, the Indian Government has introduced a bill raising it by 100 times to Rs. 500 Crores). The Centre holds 50 per cent stake in RRBs, while 35 per cent and 15 per cent are with the sponsor banks and state governments, respectively. RRBs are managed by a Board of Directors consisting of a Chairman, Three Directors to be nominated by the Central Government, not more than two directors to be nominated by the State Government, and not more than 3 directors to be nominated by the Sponsoring bank.

Functions of RRBs
Every RRB shall carry on the transact business of banking as defined in clause (b0 of section 5 of the Banking Regulation Act, 1949. They undertake specific functions, which are as follows :

1. Granting loans and advances to small and marginal farmers and agricultural laborers, whether individually or in groups, to cooperative societies, agricultural processing societies, co-operative farming societies, primarily for agricultural purposes. 
2. Granting of loans and advances to artisans, small entrepreneurs and persons of small means engaged in trade, commerce and industry or other productive activities within its area of operations.
3. Accepting Deposits
4. Other Functions such as issuing cheque books, demand drafts etc.

Difference Between RRBs and Commercial Banks
Regional Rural Banks are also scheduled banks. However they differ from commercial banks in the following aspects.

1. RRB is deal to be a cooperative society for the purpose of Income-Tax Act 1961.
2. The area of operations of RRB is limited to specific region relating to one or more districts in the concerned state. Commercial banks, as we know have no such restrictions they may open branches anywhere in the country and outside the country also.
3. RRBs grant loans and advances only to small and marginal farmers, agricultural laborers, rural artisans, small entrepreneurs and small traders. Commercial banks grant loans to all types of borrowers generally but also to the above category borrowers as part of priority sector lending. 
4. Interest paid by RRBs on its term deposits may be half percent more than i.e., paid by commercial banks.
5. Interest charges by RRBs on loans and advances cannot be more than what is charged by cooperative banks in the state. This restriction does not apply to commercial banks. 

09:21 - By Unknown 0

Regional Rural Banks - Introduction and Objectives

Regional Rural Banks - Introduction and Objectives


Friends, in our previous posts, we have discussed about various cooperative banking institutions. In this post we shall deal with various aspects of Regional Rural Banks. After Independence the major aim of the credit policy in our country has been to expand institutional financing with a view to curtail the role of non-institutional credit agencies like money lenders. The All India Rural Credit Survey Committee (1951) perceived that only multipurpose cooperatives can be a viable solution to the problem of rural finance.

Cooperative Banks at various levels were supported by their respective state governments and the RBI. Much was expected from the cooperative credit all the needs of the farmers movement. However co-operative credit institution could not meet. All India Rural Credit Survey Committee (1969) recommended a multi agency approach, to finance the rural sector. The committee observed that co-operative institutions above could not provide adequate credit to farmers since they did not have the required financial resources. Credit gap continues to exist in the rural sector. Rural banks were conceived to bridge the gap. The idea was first generated in the report submitted by the Banking Commission 1972. The Commission was not convinced that commercial banks were equipped structurally to fill the credit gap. It recommended the establishment of rural banks to strengthen the cooperative banking system. But these recommendations were not accepted by the Government of India.

The idea of establishing rural banks was once again raised in the year 1975 as part of the Prime Ministers "20 Point Economic Programme". A "Working Group on Rural Banks"  headed by Sri. M. Narasimham was set up in 1975 to examine in dept the setting up of rural banks as subsidiaries of public sector banks to cater to the needs of the rural people. The working group concluded that both the commercial banks as well as cooperative credit institutions could not adequately meets the credit needs of the target group comprising small farmers, marginal farmers, agricultural laborers, landless laborers, rural artisans, petty traders and other weaker sections of the society. It felt the necessity of creating a new institution which combines the local feel and familiarity with rural problems which the co-operatives possess and the degree of business organization, ability to mobilize deposits, access to central money markets and a modernized outlook which the commercial banks have. Majority of the recommendations made by working group were accepted by the Government of India. Base don the recommendations of the Group the Government of India began to establish Regional Rural Banks from 2nd October 1975 onwards. In the beginning they were established under the Presidential Ordinance on RRBs. But later under the Regional Rural Banks Act which was passed in February 1976.

Objectives of Regional Rural Banks (RRBs)
The objectives behind the establishment of Regional Rural Banks are :

1. To take the banking services to the doorsteps of rural masses particularly in hitherto unbanked rural areas. 
2. To make available institutional credit to the weaker sections of the society who had for little or no access  to cheaper loans and had perforce been depending on the private money-lenders. 
3. To mobilize rural savings and channelize them for supporting productive activities in the rural areas.
4. To create a supplementary channel for flow of credit from the central moeny market to the rural areas through refinance.
5. To generate employment opportunities in rural areas 
6. To bring down the cost of purveying credit in rural areas.

09:16 - By Unknown 0

10th August 2014 - Daily Current Affairs updates

10th August 2014 - Daily Current Affairs updates

• National Affairs
  

1. The festival of Raksha Bandhan, signifying the bond of love between brothers and sisters, was celebrated across the country today with traditional fervour.
2. In its effort to unearth black money stashed away abroad, India has received data on over 24,000 instances of alleged tax evasion and dubious funds which has been detected in foreign shores in the last financial year.
3. India and the 10-nation ASEAN (Association of Southeast Asian Nations) are likely to sign the long-delayed free trade agreement in services and investments later this month when their economic and trade ministers meet at Myanmar.
4. Indicating that it takes the occasion of the Independence Day and its celebrations seriously and so should the states, the Narendra Modi government has spelt out guidelines to all states on how the August 15 function should be held this time, right up to the block and village level. 
5. Amidst speculation that India's highest civilian award Bharat Ratna may be conferred on Netaji Subhas Chandra Bose, a majority of his family members today disapproved of the idea and instead demanded that the mystery of his disappearance be solved first.  

• International Affairs

1. Typhoon Halong slammed into Japan's western main island early Sunday after Japan's weather agency issued its highest alert as the storm lashed the southwest of the country.
2. The U.S. military says American jet fighters and drones have conducted four more airstrikes on Islamic militants in Iraq, taking out armored carriers and a truck that were firing on civilians.
3. France, Britain and Germany on Saturday called on Israel and Hamas to agree on an immediate ceasefire in Gaza, according to a joint declaration from the three countries' foreign ministries.
4. Laurent Fabius - France
5. Philip Hammond - Britain
6. Frank Walter Steinmeier - Germany
7. Turkey voted in its first direct presidential election today, a watershed event in the 91-year history of a country where the President was previously elected by Parliament
8. India and the U.S. must turn from defense purchases to “co-development” and not allow “red tape” to halt the progress in defense ties, visiting American Defense Secretary Chuck Hagel said today.

• Business & Economy

1. The Reserve Bank of India (RBI) has started preliminary discussions with the Finance Ministry on monetary policy framework, which includes targeting consumer price index-based inflation.
2. Nudging the RBI to cut interest rates to boost growth, Finance Minister Arun Jaitley today said he had already made his mind clear and hoped the central bank will take decision after taking into account various factors. 
3. The Employees' Provident Fund Organization (EPFO) is likely to announce rate of interest on PF deposits for the current fiscal year (2014-15) for its over 5 crore subscribers at a meeting of its trustees on August 26.
4. India to extend export benefits to rupee trade with Iran. Exports to Iran in Indian rupee will also be entitled for trade benefits as available to exporters realising proceeds in freely convertible currencies.
5. Paving the way for Rs 1 lakh crore fund inflows from foreign and domestic investors, Sebi today cleared new norms for setting up and listing of Real Estate and Infrastructure Investment Trusts.

• Science & Technology

1. World's most popular free email providers Gmail and Yahoo have made telephone number mandatory for creation of new email addresses in a bid to check spam.

Sports

1. Venus beat Serena in an all-Williams semifinal in the Rogers Cup.
2. Roger Federer advanced to the Rogers Cup final on Saturday night, beating Spain’s Feliciano Lopez.

09:11 - By Unknown 0

9th August 2014 - Daily Current Affairs udpates

9th August 2014 - Daily Current Affairs udpates



National Affairs

1. Ratifying Amit Shah as Bharatiya Janata Party (BJP) President, outgoing party chief Rajnath Singh on Saturday said that under Prime Minister Narendra Modi and Amit Shah, India will become 'jagat guru' again.
2. More than 3,000 cost free bicycles were today distributed to Plus One students of 22 government and aided schools in the district by Tamil Nadu Minister for Highways and Minor Ports, Edapadi K Palanisamy.

Deaths

• Legendary Israeli director and film producer Menahem Golan (85) passed away.
• Some of his famous films 'The Delta Force', 'Death Wish' and ' Masters of the Universe'.

International Affairs

• US Defense Secretary Chuck Hagel today called for stronger defense cooperation between India and the US, and said Washington was supportive of India playing a larger role in regional security.
• India and the US agreed to go in for co-development and co-production of advanced weapon systems, with Washington pushing New Delhi for early decisions on offers ranging from the next-generation Javelin anti-tank guided missiles (ATGMs) to unmanned aerial vehicles (UAVs).
• Seeking deepening of ties with ASEAN, India on Saturday said it would soon draft a five-year plan of action starting 2016 to take the “trajectories” of common interests with the 10-member grouping to a new level and particularly emphasized on improving connectivity in the region to further boost trade and people-to-people contact.
• Nigerian President Goodluck Jonathan declared a state of emergency today amid an Ebola outbreak plaguing West Africa, approving more than $11 million to fight the deadly disease.
• Guinea has announced the closure of its borders with Sierra Leone and Liberia on Saturday in a bid to halt the spread of the Ebola virus.
• A STATE of international emergency has been declared over the ebola outbreak that has killed almost 1000 people in west Africa as infection control measures fail to tame the virus.

Sports

• The Indian compound mixed team of Abhishek Verma and Purvasha Sudhir Shende failed to raise its shooting standard against the USA and lost 155-151 in the final to settle for silver in the World Cup archery at Wroclaw, Poland today.
• The flame that will be used at the 17th Asian Games to be held in Incheon next month was lit in New Delhi today.  

02:28 - By Unknown 0