URRENT NATIONAL AFFAIRS Draft RBI guidelines for Banks To protect the financial system from risks emanating

from large banks, the RBI has floated draft guidelines for the domestic systemically important banks (D-SIBs) that would require such lenders to maintain an additional core capital of up to 0.80 per cent starting 2015. According to the draft guidelines, a list of D-SIBs will be made public every August starting from 2015. These D-SIBs will be selected based on a predetermined formula. The classifying system is based on the BCBS (Basel Committee for Banking Supervision) framework for global systematically important banks (SIBs) and involves computation of composite systemic importance score for banks which will be arrived at post-considering a bank's size, interconnectedness, substitutability and complexity. The draft guidelines say in the eventuality of a financial crisis, issues faced by large financial institutions in a inter-connected system harm the real economy and in some cases, the governments has to intervene to ensure financial stability. Costs of public sector intervention and consequential increase in moral hazard require that future regulatory policies should aim at reducing the probability of failure of systemically important banks and also should try to reduce the impact of the failure of these banks. Setting aside additional capital will also ensure a level-playing field between SIBs and non-SIBs.

Appointments; Elected; Etc. Michelle Bachelet: Left-wing candidate, she has been elected President of Chile for a second time, defeating her run-off rival by a wide margin. Ms Bachelet first served as President in 2006-10, after which she was obliged by electoral laws to stand down.A paediatrician by training, Ms Bachelet had won 47% of the vote in the first round. Vinod Kumar Duggal: Former Home Secretary of India he has been appointed as the Governor of Manipur. Vasundra Raje Scindia: Leader of the BJP, she has been elected as the Chief Minister of Rajasthan. Raman Singh: Leader of the BJP, he has been re-elected as the Chief Minister of Chattisgarh. Shivraj Singh Chouhan: Leader of BJP, he has been re-elected as Chief Minister of Madhya Pradesh.