September 2013 Current Affairs

SEPTEMBER 2013
CURRENT AFFAIRS
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Rajan Committees new methodology to replace special category status for
devolution of funds to States
September 29th, 2013
The panel set up by the government under the chairmanship of the then Chief Economic
Advisor Raghuram Rajan (now RBI governor) has suggested ending the special
category criteria for providing additional assistance to poorer states.
Why did the government set up the Rajan Committee?
The Union Government set up Raghuram Rajan Committee amid demands for special
category status by Bihar and some other status to get additional financial assistance from
the Centre. The Committee was tasked to suggest methods for identifying backwardness of
states using a variety of criteria and also to recommend how the criteria may be reflected in
future planning and devolution of funds from the central government to the states.
What are the key recommendations of the Rajan Committee?
The Rajan Committee has made two key recommendations for devolution of funds to states.
They are:
a) A new methodology based on a Multi Dimensional Index (MDI).
Depending on the scores of the 28 states on the MDI, they will be split into 3 categories:
1. Least developed
2. Less developed
3. Relatively developed
b) Each state should get a basic fixed allocation and an additional allocation depending on
its development needs and development performance.
As per the Committee, these two recommendations, along with the allocation
methodology, will effectively subsume what is now Special Category status.
According to the MDI scores:
Least Developed states: Odisha, Bihar, Madhya
Pradesh, Chhattisgarh, Jharkhand, Arunachal Pradesh, Assam,Meghalaya, Uttar
Pradesh and Rajasthan.
Less Developed states: Manipur, WestBengal, Nagaland,Andhra Pradesh, Jammu and
Kashmir, Mizoram, Gujarat, Tripura,Karnataka, Sikkim and Himachal Pradesh.
Relatively Developed states: Goa, Kerala, Tamil
Nadu, Punjab,Maharashtra, Uttrakhand and Haryana.
The Department of Economic Affairs will soon examine the report and take necessary action.
AirAsia India received NOC from aviation ministry
AirAsia India has announced that it has received a No Objection Certificate (NOC) from
the Ministry of Civil Aviation and would apply for Air Operating Permit to launch its
operations. The next step for the company is to apply to the Directorate General of Civil
Aviation (DGCA) for its Scheduled Operators Permit (SOP or the flying permit), which
is the final step before it can start its flight operations.
The DGCA grants the SOP after inspecting the preparations of a start-up airline to launch
flights by examining issues like availability of aircraft, manpower to operate flights as well as
on the ground, aircraft parking space at airports and engineering facilities.
The NOC would also enable AirAsia India to import the first of the three aircraft to Chennai,
which would be its headquarters.
About Air Asia India:
Joint venture between the Malaysian airline AirAsia ( 49% stake), the Tatas (30%) and
the Telstra Tradeplaceowned by Arun Bhatia (21%).

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Headquarters: Chennai
CEO: Mittu Chandilya, CEO
Finance Ministry approves 5,500 cr as SBA to pay fertiliser subsidy
Finance Ministry has approved for Rs 5,500 crore against Rs 12,000 crore sought by the
Department of Fertilisers under a Special BankingArrangement (SBA) to pay part of the
subsidy bill to the industry which is going through a liquidity crunch as the domestic urea
subsidy funds have been exhausted.
The department has the total requirement of about Rs 30,000 crore which the department
might seek under supplementary grant. Of this about Rs 12,000 crore is immediately
required.
The government has slightly slashed the fertiliser subsidy to Rs 65,971.50 crore for the
2013-14 fiscal from the revised estimate of Rs 65,974 crore in 2012-13.
Of this, the government will provide Rs 15,544.44 crore for imported urea, Rs 21,000 crore
for indigenous (urea) fertilisers, and Rs 29,426.86 crore for decontrolled fertilisers (DAP,
MOP and complexes) for supplying the inputs to farmers at a subsidized rate.
Sarah Outen: First woman to row solo from Japan to Alaska
Sarah Outen (28), an adventurer from Britain who spent 150 days at sea to become the
first woman to row solo from Japan to Alaska. She started from Choshi, Japan and sailed
3,750 miles (6,034 km) to reach Aleutian Island in Alaska. It is part of her plan for a global
trek by an ocean rowing shell, kayak and bike.
Peace Mission 2013: Joint military drill of Russia and China
In a latest development in the defence field, Russiaand China held a joint anti-terrorism
military exercise called Peace Mission 2013 in both the Shenyang military area command of
the PLA (Peoples Liberation Army) and the Chebarkulsky range.
1500 military personnel from both Russia and China will participate during the anti-terrorism
exercise. The exercise aims to enhance cooperation between China and Russia to maintain
regional stability. The exercise also symbolizes deepening partnership between Russia and
China.
Rock Wrens a species makes comeback from extinction through Conservation
Project
New Zealands Department of Conservation (DOC) project yielded positive result as Rock
Wrens, one of the oldest as well as the most distinctsongbird species retuned from
extinction. The relocation project of DOC involved relocation of 41 tiny alpine Rock Wrens
from around Fiordland in the far southwest of New Zealands South Island to Secretary
Island from 2008 to 2011. Now, the number of Rock Wrens has increased to 66.
It is the only true alpine bird in New Zealand and one of the most ancient bird species in the
world which evolved from a species present more than 80 million years ago. The Rock Wren
and the Rifleman are the only two wren species surviving today.
Indian-origin scientist discovers universal flu vaccine
A team of researchers led by Professor Ajit Lalvanifrom the National Heart and Lung
Institute at Imperial College London have discovered a new way of combating viral flu
infections. He has developed a roadmap to develop universal flu vaccine.
What is the approach to develop universal flu vaccine?

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Scientists investigated why some people resist severe illnesses of influenza virus. They
found that the people who evade severe flu illnesses had more CD8 T cells in their blood at
the start of the pandemic.CD8T cells are a type of virus killing immune cell. They
concluded that a vaccine which can stimulate the body to produce more of these cells could
be effective at preventing flu viruses, including new strains that infect humans from birds
and pigs.
How CD8T cells function differently than normal antibodies?
The specific quality of CD8T cells which renders it the potential to kill different strains of flu
viruses is that it attacks the core of the virus unlike normal antibodies which target the
surface of a virus. The flu virus rapidly changes its surface which makes older vaccine less
effective. However, CD8T cells attack the core of the virus which remains the same. So,
even if the virus changes its outer structure it would not affect the potential of CD8T cells to
target them.
Dextrose Gel can help treat Hypoglycaemia in Premature Babies
As per scientists from the University of Auckland, New Zealand the dose of sugar in the form
of gel can help prevent premature babies from the risk of brain damage due
to Hypoglycaemia. This is named as Dextrose gel treatment.
During this treatment, the sugar gel should be rubbed in the inside of cheeks and it has
been found as the effective and cheapest possible way. Around 10% of premature babies
face the risk of low blood sugar level, which eventually affects them. If left untreated, it can
cause permanent damage.
As per researchers, dextrose treatment this should become the first-line treatment. The cost
of Dextrose gel treatment is merely 1 Pound per baby and is also simple to administer in
comparison with the glucose through the drip.
However, the treatment has to go through further research for implementation of the
treatment.
What is Hypoglycemia?
A medical emergency condition in which body has abnormally low levels of blood sugar
(glucose) is called as hypoglycemia. Glucose is the bodys main energy source.
Hypoglycemia is not a disease in itself; it is a sign of a health problem.
Sapien Biosciences: Indias first commercial Bio-Bank
Apollo Hospitals and health science firm Saarum Innovations have entered into a joint
venture (JV) to set up the first commercial bio bank of India named as Sapien
Biosciences. The joint venture envisages creation of a sophisticated bio bank as well as a
personalised medicine company.
Sapien Biosciences consists of collections of high quality and systematically archived human
samples which can be used for new clinical and research and development applications.
What is a Bio-bank?
A biobank is a type of biorepository that stores biological samples (usually human) for use
in research. This storehouse maintains various kinds of bio-specimens which include
purified DNA, plasma, saliva and blood. These samples are catalogued according to genetic
as well as other kinds of traits like ethnicity, blood type, gender and age. These specimens
and specimen related biological data are accessed by researchers of various organisations
and firms for their research studies.
About Sapien Biosciences
First commercial bio bank of India

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JV of Apollo Hospitals and Saarum Innovations
It will leverage the pathological and diagnostic data for developing state-of-the-art
diagnostics as well as provide world class genetic risk assessment.
It will facilitate cell-related research assistance to various Pharmaceutical companies.
It will also provide the personalized treatment to patients, which will include detection of the
genetic disposition of patients for early diagnosis of diseases.
Union Government sets up Committee for evaluation of research and rankings
In the wake of Indias low performance in the rankings of higher educational institutions in
world, the Union Government of India formed a committee under the chairmanship of K.
Vijay Raghavan, Secretary of Department of Biotechnology for evaluation of research and
rankings by promoting healthy competition among institutions, departments and individual
researchers.
What would the committee on evaluation of research and rankings do?
The committee will review the current funding of research and it will also devise a strategy
for selective approach in allocation of funds to academic institutions to encourage research.
It will also ensure that some of the institutions reach the global benchmarks in research.
CCEA approves Petroleum Ministrys proposal on shale gas exploration and
exploitation
The proposal of the Ministry of Petroleum and Natural Gas on the policy on exploration and
exploitation of shale gas and oil by National Oil Companies (NOCs) on acreages under the
nomination regime has been approved by the Cabinet Committee on Economic Affairs.
How the policy on exploration/exploitation of shale gas by NOCs would help?
The policy will facilitate NOCs to perform exploration and exploitation of unconventional
hydro-carbon resources particularly shale gas and oil in their already awarded Petroleum
Exploration License and Petroleum Mining Lease (PEL/PML) acreages under the nomination
regime. The policy also stipulates the terms/conditions for guiding these activities.
Why the government is bringing a different policy for shale oil/gas?
The production requirements and profile for shale oil and gas is different from conventional
gas and oil. Therefore, there was a need of the policy in order to achieve early development
of these resources and to address issues evolving out of Exploration & Production activities
in shale gas and oil.
CCEA approves construction of Rajaswa Bhawan as the National Tax Headquarters
The Cabinet Committee on Economic Affairs (CCEA approved the construction of the
Rajaswa Bhawan as the National Tax Headquarters at Kasturba Gandhi Marg, New Delhi at
an estimated cost of Rs 485.16 crore.
Objective: To decongest North Block and consolidate the establishment of Central Board of
Direct Taxes (CBDT) and the Central Board of Excise and Customs (CBEC) at a common
platform. The need for a composite and larger platform for both these largest revenue
collecting boards of the Government of India was felt because of growth in revenue
collection and also to enhance the efficiency of tax administration. The construction of the
building has been entrusted with the DefenceResearch and Development Organization
(DRDO).
CCEA approves auction methodology for Coal Block Auction
Cabinet Committee on Economic Affairs (CCEA) has given approval to the policy for auction

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by competitive bidding of the coal blocks which aims to ensure greater transparency and will
pave the way for the government to auction explored blocks.
The policy provides for:
Auctioning the fully explored coal blocks providing for upfront and production-linked
payments and benchmarking of coal sale prices.
Expediting the auction by exploration of regionally explored blocks through up gradation of
geological data to a reasonable level of certainty.
Production linked payment on rupee per tonne basis, plus a basic upfront payment of 10%
of the intrinsic value of the coal block.
The intrinsic value of coal block will be estimated on the basis of Net Present Value (NPV) of
the block arrived at through Discounted Cash Flow (DCF) method. To benchmark the selling
price of coal, theinternational FoB (freight-on-board) price from the public indices like
Argus/Platts will be used by adjusting it by 15% to provide for inland transport cost which
would give the mine mouth price.
To avoid short-term volatility, the average sale price will be calculated by taking prices of
the past five years. For the regulated power sector, a 90% discount will be provided on the
intrinsic value. This will help to rationalise power tariffs.
Agreement between Ministry and the bidder to perform agreed minimum work programmes
at all stages.
There would be development stage obligations in terms of milestones to be achieved such as
getting mining lease, obtaining environment/forest clearances etc.
The bidder will have to give performance guarantee during the developmental stage. The
successful bidder will get 2 years for exploration (for regionally upgraded blocks) and 5
years for development of coal blocks.
Relinquishment of the block without penalty provided, the bidder has carried out minimum
work programme stipulated in the agreement.
The details of the coal blocks will be reviewed by the Ministry of Environment and Forest and
communicate its findings before the blocks are put to auction. However, final approval will
be subject to the statutory clearances under the law.
CCEA takes steps for operationalisation of IDFs
The Cabinet Committee on Economic Affairs (CCEA) has taken the following steps to
promote the operationalisation of Infrastructure Debt Funds (IDFs).
The annual Guarantee Fee payable to the Concession Authority has been capped at 0.05%
per annum, of outstanding debt financed by the IDF NBFCs (Non Banking Financial
Companies) for the first 3 years of operation of the IDF NBFC.
IDFs will be given the status of Public Financial Institutions (PFI). Infrastructure Debt
Funds are allowed to file Shelf Prospectus under Section 60 A of the Companies Act, 1956
and access to provisions of the SARFAESI Act, including to the adjudicatory process
through Debt Recovery Tribunals.
Post-successful COD PPP (Commercial Operation Declaration) projects shall now be
eligible for investment by Insurance Companies, Provident Funds (PFs), EPFO, Mutual
Funds (MFs), etc.
What are Infrastructure Debt Funds (IDF)?
As per Reserve Bank of India, IDFs are investment vehicles which can be sponsored by
commercial banks and NBFCs in India in which domestic/offshore institutional investors,
specially insurance and pension funds can invest through units and bonds issued by the
IDFs. IDFs would essentially act as vehicles for refinancing existing debt of infrastructure

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companies, thereby creating fresh space for banks to lend to fresh infrastructure projects.
IDF-NBFCs would take over loans extended to infrastructure projects which are created
through the Public Private Partnership (PPP) route and have successfully completed 1 year of
commercial production. Such take-over of loans from banks would be covered by a Tripartite
Agreement between the IDF, Concessionaire and the Project Authority for ensuring a
compulsory buyout with termination payment in the event of default in repayment by the
Concessionaire.
What legal forms can IDF be set up as and who will be the regulators?
Infrastructure Debt Funds (IDFs), can be set up either as a Trust or as a Company. A trust
based IDF would normally be a Mutual Fund (MF), regulated by SEBI, while a company
based IDF would normally be a NBFC regulated by the Reserve Bank.
Do the NBFCs/IFCs need prior permission from Reserve Bank for sponsoring IDFs?
Yes NBFCs and NBFC-IFCs need to take prior approval from the Reserve Bank for sponsoring
IDFs.
How do IDF- NBFCs and IDF-MFs (Mutual Funds) raise resources?
IDF-NBFCs will raise resources through issue of either Rupee or Dollar denominated bonds of
minimum 5 year maturity. IDF-MFs will raise resources through issue of units of MFs.
What does sponsorship mean?
Sponsorship means equity participation by the NBFC between 30 to 49% of the IDF.
Who can invest in the bonds of IDF-NBFCs and Units of IDF-MFs?
Domestic/offshore institutional investors, especially insurance and pension funds can invest
through units and bonds issued by the IDFs.
John W. Ashe is the President of UNGA for its 68th session
The United Nations General Assembly elected by acclamation Ambassador John W. Ashe of
Antigua and Barbuda as President of its upcoming 68th session.
Made up of all the 193 Member States of the United Nations, the General Assembly
provides a forum for multilateral discussion of the full spectrum of internationalissues
covered by the UN Charter. It meets in regular session intensively from September to
December each year, and thereafter as required.
IDBI Bank launches Own Your NPA campaign
In a bid to speedily recover Non-Performing Assets (NPA), the IDBI Bankhas launched a
campaign named Own Your NPA.
What is Own Your NPA campaign?
It is a NPA recovery drive launched by the IDBI Bank through which it has tasked its
managers at the zonal, regional and branch levels to focus their on making recoveries
from the top 20 bad loan accounts in their jurisdiction. As part of the campaign, each
zonal, regional and branch manager will personally go and meet the customers. The bank
has identified 1522 cases, involving an aggregate principal outstanding of Rs 5,805 crore
which is approximately 73% of its total NPAs of Rs 7,959 crore as on June-end 2013.
What is Non-Performing Assets (NPA)?
In simple words, the assets of the Banks which dont perform (means dont bring any
return) are called Non Performing Assets. In more general sense they are bad Loans.
Any asset, including a leased asset, becomes non performing when it ceases to generate
income for the bank.
However, there is a prescribed definition by the RBI which defines the NPAs as:
Terms Loans on which interest and / or installment of principal remain overdue for a

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particular quarter for a period of more than 90 days from the end of that particular
quarter.
The Bills those remain overdue for a period of More than 90 Days from the end of a
quarter.
Any amount to be received remains overdue for a period of more than 90 days.
The Cash Credit account remains out of order for a period of more than 90 days. Out of
order means over the sanctioned limit.
Note: This period of 90 Days for the above categories was 180 days prior to 2004.
So 90 Days is the thumb rule in the deciding the NPAs. However, there is an exception to
this. Go through the following case:
A farmer has taken a loan for a paddy crop in the beginning of the Rabi Season and
has not made a repayment. In which of the following situations, if Installment or
interest is not paid for this loan, it would become a NPA (Non Performing Asset)?
1. 90 Days from the due date
2. 90 Days from the end of the Rabi Season
3. 1 crop season from the due date
4. 2 crop seasons from the due date
The answer of the above question is (4) i.e. 2 crop seasons from the due date. Please note
the following:
For short duration crop agriculture loans such as paddy, Jowar, Bajra etc. if the loan
(installment / interest) is NOT paid for 2 crop seasons (means Kharif, and next Rabi in the
above question), it would be termed as a NPA.
For long duration crops, the above would be 1 Crop season from the due date
Mayaram panel submits report on NSEL crisis
A high-level committee, chaired by Economic Affairs Secretary Arvind Mayaram, submitted
to Finance Minister its report on the alleged irregularities at the National Spot Exchange Ltd
(NSEL). The panel has found minor systemic problem and the report details long term
measures to deal with such irregularities.
What is the National Spot Exchange Limited (NSEL)?
National Spot Exchange Limited (NSEL) is a Commodities exchange in India, and is a
joint venture of Financial Technologies (India) Ltd. (FTIL) and National Agricultural
Cooperative Marketing Federation of India (NAFED). The exchange launched its live trading
operations in different commodities on October 15, 2008. It began trading in pre-certified
cotton bales for Mumbai delivery and imported gold and silver bars for Ahmedabad delivery
immediately, and has since added a number of commodities.
The mission of the exchange is to develop a common Indian market by setting up a
nationwide
electronic spot market and providing state of art trading, delivery, and settlement
facilities in various commodities.
What is the issue of NSEL?
The NSEL is going through a financial crisis in settling dues worth Rs 5,600 crore. All the
operations of the NSEL are completely shut since August 5, 2013. The exchange blamed the
government for the structural changes it instructed for creating market
disequilibriumwhereas other experts believe NSEL was required to be deliver commodity
physically instead the exchange facilitated use of electronic warehouse receipts, enabling
investors to avail of the arbitrage, without taking physical possession of goods. The
loopholes in contracts and insufficient underlying stocks to cover liabilities led to financial

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crisis.
Why did the government constitute Mayaram Committee?
The Committee was set up to look into the issue of NSEL failure and recommend measures
to fill the gaps in the oversight of spot exchanges. The main issue was whether NSEL
violated the Government exemption for one-day forward trading and also the ban on all
short sales.
Virat Kohli appointed as brand ambassador of BSF
The Border Security Force has appointed Indian cricketer Virat Kohli as its brand
ambassador. It is important to note that any central force in India has appointed its brand
ambassador. BSF is the second largest paramilitary force of India that guards two crucial
Indian borders with Pakistan and Bangladesh.
Virat Kohli has been roped in for strengthen the appeal of 2.5 lakh personnel strong BSF.
About the Border Security Force (BSF)
Established on December 1, 1965, the Border Security Force (BSF) is a border patrol force
of the Government of India. BSF come under the flank of the Paramilitary Forces of India
(PMF) and its main role is to guard Indias international borders during peacetime as well as
prevent transnational crime. The BSF is under the administrative control of the Ministry of
Home Affairs. Besides ensuring the border security, BSF also has the responsibility of
conducting the anti-Naxal operations in India as well as playing roles in upkeep of the
internal security.
Indian Navy and Royal Omani Navy conduct Exercise: Naseem Al Bahr
Naseem Al Bahr- the 9th edition of biennial naval exercise between Indian
Navy and Royal Omani Navy kicked off in Oman.
In Indian fleet participating in the drill were Indian Naval Ship(INS) Mysore (guided
missile destroyer), INS Tarkash , INS Tabar (stealth frigates) and INS Aditya (fleet
tanker).
On the side of Royal Omani Navy, ships participating were Royal Navy of Oman Vessels
(RNOV) missile and gun vessels, RONV Al Muazzar, RONV Al Mussandam, RONV Al Naja and
a Landing ship RNOV Temsah, along with Royal Air Force of Oman aircraft F-16, Hawks and
Jaguars amongst others.
Freedom Fighter Ranjit Singh passed away
Veteran freedom fighter Captain Ranjit Singh (97) passed away. He was a close associate of
Netaji Subhas Chandra Bose.
About Ranjit Singh
He served the Indian National Army under the leadership of Subhash Chandra Bose.
Became working president of All India Freedom Fighter Organisation.
After retirement, he worked for the welfare of freedom fighters families.
World Tourism Day observed across the globe
World Tourism Day was observed on September 27, 2013 across the globe to raise
awareness about the importance of tourism.
Theme for 2013: Tourism and Water: Protecting our Common Future
The theme has been chosen highlight the role of tourism in water access and brings into
focus the actions currently being taken by the tourism sector in order to contribute to a
more sustainable water future.

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Aadhaar card optional, not mandatory: Government
Informing the Supreme Court, the Centre stated that securing Aadhaar cards is optional and
not mandatory.
What is voluntary/mandatory issue with the Aadhaar cards?
A number of pleas have been made in the apex court against decisions of some States to
make Aadhaar cards mandatory for a range of activities including salary, Provident Fund
disbursals and marriage and property registrations. However, the Centre maintains that
Aadhaar Cards are voluntary and not compulsory. Despite the fact that the Aadhaar card is
voluntary in nature, an order has been issued by the Registrar of the Bombay High Court
in pursuance of an order of the MaharashtraGovernment that it would be necessary for
disbursal of salary of judges and staff also.
As per petitioners, the Aadhaar scheme is complete infraction of Fundamental Rights under
Articles 14 (right to equality) and 21 (right to life and liberty). Recently, the Maharashtra
Government made Aadhaar mandatory for purposes such as registration of marriages and
others.
However, the Centre holds that the consent of an individual is indispensable for Aadhaar and
it has been launched to promote inclusion and benefits of the marginalised sections of
society that has no formal identity proof.
Do not issue Aadhaar cards to illegal immigrants
The Government has been asked by the apex court not to issue the cards to illegal
immigrants and not set them as a pre-condition for availing welfare schemes.
Life imprisonment to China Communist Party Leader Bo Xilai
A Chinese court in east Chinas Shandong province sentenced top China Communist Party
leader Bo Xilai to life imprisonment uphelding the charges of bribery, embezzlement and
abuse of power against him. The court also stripped Bo of all political rights and ordered the
confiscation of his property.
Who is Bo Xilai and what is his case?
Bo Xilai is a former Chinese politician. He hit to the fame through his tenures as the mayor
of Dalian province and later governor of Liaoning. He also served as Minister of Commerce.
Between 2007 and 2012 he served as a member of the Central Politburo and secretary of
the Communist Partys Chongqing branch.
His political career overturned following the Wang Lijun incident, in which his top lieutenant
and police chief sought asylum at the American consulate in Chengdu and revealed details of
Bos alleged involvement in a homicide plot. Following this incident, Bo was removed as the
chief of the Chongqing city in 2013 and sacked from the ruling party following allegations of
bribery, embezzlement and abuse of power against him. He was also accused of receiving
20 million Yuan (3.5 Million US Dollars) as bribes and owning a luxury villa in France.
Investment through P-Notes hits 3-month high of $26 billion
As per share market regulator SEBI, investments into Indian shares through participatory
notes (P-Notes), hit a three-month high of Rs 1.65 lakh crore (about $26 billion) in August
2013.
What are Participatory Notes?
Participatory Notes or P-notes are derivative instruments, used by Foreign Institutional
Investors (FIIs) who are NOT registered with SEBI. The major characteristics of P-notes are:
1. They are derivative instruments

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2. They are used by Foreign Institutional Investors (FIIs) who are NOT registered with SEBI.
3. They are used on Indian shares, but at a location outside ofIndia.
This means that the FIIs who are not registered with SEBI but wish to take exposure in the
Indian securities markets can use P-notes. P-Notes, mostly used by overseas HNIs (High
Networth Individuals), hedge funds and other foreign institutions, allow them to invest in
Indian markets through registered Foreign Institutional Investors (FIIs), while saving on
time and costs associated with direct registrations. Brokers buy or sell securities on behalf of
their clients on their proprietary account and issue such notes in favor of such foreign
investors.
Moodys lowers SBIs debt and local currency rating to junk
Global rating firm, Moodys Investors Service, has downgraded State Bank of Indias senior
unsecured debt and local currency deposit ratings to Baa3 or lowest investment grade
rating from Baa2 and altered the outlook on SBIs financial strength rating
to negative from stable as the economic slowdown impacts banks credit quality.
Why did Moodys downgrade SBIs rating?
As per rating agency, the combination of mounting pressure on credit fundamentals and the
ongoing dependence on the fiscally constrained Indian government to maintain Capital
Adequacy Ratio (CAR) are key players behind the rating downgrade at a level no higher than
the sovereign.
Three members of National Ganga River Basin Authority resign
Three expert members- Rajendra Singh, Ravi Chopra and Rashid Siddiqui resigned from the
National Ganga River Basin Authority (NGRBA) which was set up with the objective of
protecting the Ganga from pollution and overuse. The members were disquieted over the
fact that the National Ganga River Basin Authority has not met since April 2012, especially in
the wake of continued government indifference on101st day of professorGD Agrawals fast
for Ganga.
Key points about the National Ganga River Basin Authority (NGRBA)
Established: February 20, 2009 under Section 3(3) of the EnvironmentProtection Act,
1986, which also declared Ganges as the National River of India.
Authority: Financing, planning, implementing, monitoring and coordinating authority for
the Ganges River, functioning under the Ministry of Environment of India.
Mission: Protect the drainage basin which feeds water into the Ganges by protecting it from
pollution or overuse.
Ex-Officio Chairman: Prime Minister
Other members: Union Ministers concerned and the Chief Ministers of states through
which Ganga flows, viz., Uttarakhand, Uttar Pradesh,Bihar, Jharkhand and West Bengal,
among others.
Who is G.D. Agarwal?
G.D. Agarwal alias Swami Gyan Swaroopanand (80) is a noted environmentalist and former
Indian Institute of Technology (IIT) professor. He has served as a secretary of the Central
Pollution Control Board, the countrys premier anti-pollution body, and helped put together
environmental legislation in India. He has been on a fast- unto-death for over 101 days now
to save the Ganga River and is determined to continue his fast albeit he is physically worn
out. He is notable for his successful fast in 2009 to stop the damming of the Bhagirathi
River.
His major concern is the inadequate and ineffectual operation of the NGRBA. He is also

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against on-going construction of dams/barrages/tunnels on Ganga which would completely
destroy the natural flow regimes and quality of the river water, inability of the regulatory
agencies in checking discharge of urban and industrial wastes into the Ganga and complete
lack of sensitivity of the government on these environmental issues.
Established: February 20, 2009 under Section 3(3) of the Environment Protection Act, 1986,
which also declared Ganges as the National River of India.
Govt of India launches Jiyo Parsi scheme
With the aim to contain the dwindling population of Parsis in India, theJiyo Parsi
scheme has been launched by the Ministry of Minority Affairs, Government of India.
What is Jiyo Parsi scheme?
Jiyo parsi scheme has the objective of reversing the declining trend of Parsi population by
adopting scientific protocol and structured interventions, stabilize the Parsi population and
increase the population of Parsis in India.
Key features of the Jiyo Parsi scheme:
100% financed by Ministry of Minority Affairs, Government of India.
Medical interventions under Standard Medical protocols in select hospitals/clincs.
Confidentiality of the patients to be given utmost importance.
Who will be the target group under Jiyo Parsi scheme?
The scheme is designed only for Parsi community. It will be available for Parsi married
couples of child bearing age who seek assistance and adults/young men/women/adolescent
boys/girls for diagnosis of diseases.
Grameen Bank (Bangladesh) to be brought under Central Bank jurisdiction in
Bangladesh
The Grameen Bank, the Nobel Peace Prize winning microcredit organization of Bangladesh,
will be brought under the control of countrys central bank to give the authorities more
powers over the organization.
The decision by the government follows the recommendations of government-sponsored
Grameen Bank Commission, which suggested bringing the bank under the regulatory control
of either the Bangladesh Bank or the Microcredit Regulatory Authority to better monitor its
activities.
Currently, the Grameen bank is being run by Grameen Bank Ordinance 1983 and it does not
directly fall under the jurisdiction of the BankingCompanies Act.
In 2011, the central bank of Bangladesh, the Bangladesh Bank, removed Nobel Laureate Dr.
Muhammad Yunus as the Managing Director of Grameen Bank citing age limit.
About Grameen Bank:
The Grameen Bank is a Nobel Peace Prize-winning microfinance organization
and community development bank founded inBangladesh. It makes small loans (known
as microcredit or grameencredit) to the impoverished without requiring collateral.
Grameen
Bank originated in 1976, in the work of Professor Muhammad Yunus, Professor at University
of Chittagong, who launched a research project to study how to design a credit delivery
system to provide banking services to the rural poor. In 2006, the bank and its founder,
Muhammad Yunus, were jointly awarded the Nobel Peace Prize.
Union Government launches Seekho Aur Kamao (Learn and Earn) Progrmme
Union Ministry of Minority Affairs, Government of India launched Seekho Aur Kamao

12
(Learn and While) Scheme for Skill Development of Minorities.
What are the key objectives of the scheme Learn and Earn?
The main objectives of this scheme are:
Reduce the unemployment rate of minorities during 12th Plan period (2012-17).
Conserve and update traditional skills of minorities and establish their linkages with the
market.
Improve employability of existing workers, school dropouts etc. and ensure their
placement.
Generate means of better livelihood for marginalized minorities and bring them in the
mainstream.
Facilitate minorities to avail opportunities in the growing market.
Develop potential human resource for the nation.
What will be the areas of focus under Learn and Earn scheme?
The focus areas of this scheme are:
Placement oriented training programme for modern trades.
Skills Training Programme for Traditional Trades.
Training programme will also include soft skills training, basic Information and Technology
(I.T) and English training.
Project implementing agencies to ensure 75% employment and out of that 50% in
organized sector.
Mechanism for placement and post placement support.
100% assistance by Ministry of Minority Affairs, Government of India.
Who will be benefitted from Learn and Earn scheme?
The scheme will be implemented for the benefit of the 5 notified minority communities under
National Commission for Minorities Act 1992(Muslims, Christians, Sikhs, Buddhists and
Parsis). However, in the States/UTs where some other minority communities notified by
respective State/UT Governments exist, they may also be considered for the programme but
they will not occupy more than 5% of the total seats.
BlackBerry to be bought by Prem Watsa-led Fairfax group for $4.7 billion
Canadian firm Fairfax signed a letter of intent with Ontario based Blackberry making an offer
to acquire the pioneering mobile maker.
BlackBerry was once a leader in mobile tech but has been squeezed by rivals Android and
Apple, which coincidentally announced record sales of its latest iPhone.
Fairfax Financial Holdings Limited is headed by billionaire Prem Watsa. The firm is already
BlackBerrys largest shareholder with approximately 10% of its shares.
About Prem Watsa:
Prem Watsa is the founder, chairman, and chief executive of Fairfax Financial Holdings,
based in Toronto, Ontario. He was born in Hyderabad,India. He has been called the
Canadian Warren Buffett by some during successful periods of investing. He is
a CFA charterholder, an alumnus of the Hyderabad Public School, Begumpet,a graduate of
the Indian Institute of Technology with a degree in Chemical Engineering and a holder of
an MBA from the Richard Ivey School of Business of the University of Western Ontario.
Earthquake forms methane spewing island off Gwadar in Pakistan
A powerful earthquake (7.7 ) that hit the Makran zone caused a methane and mud spewing
island to form off the coast of Gwadar in Balochistan province of Pakistan.
How did earthquake (7.7 ) that hit the Makran zone happen?

13
The sea from Gwadar to Ormara had a huge stock of frozen methane gas below the sea bed.
When there was a seismic movement the gas deposits, which expand creating high
pressure, pushed up a land mass creating which appears in the form of island. The land
mass is 50 metres long, 20 to 30 metres wide and rises 10 metres above the water about
two km off the coast of Gwadar. The island is composed of soft sediment, mostly mud,
sand and rock fragments. This phenomenon was also observed in 1999 and in 2010 near
Ormara, off the Hingol river where it enters the sea.
The Good Road is Indias entry for Oscar
The selection panel appointed Film Federation of India (FFI) has chosen filmmaker Gyan
Correas Gujarati film The Good Road as Indias entry for the best foreign film category
at the AcademyAwards 2013. It is the first Gujarati film to have achieved this feat.
Earlier this year, The Good Road had won the National Award for Best Feature Film
(Gujarati).
The movie was selected among some very strong contenders including The Lunchbox,
Bhaag Milkha Bhaag, English Vinglish, Vishwaroopam, Malayalam film Celluloid
and
Bengali film Shabdo
Impasse over RBIs 80:20 gold import scheme ends
The government cleared the confusion that was going between the Customs Department
and gold importers regarding the RBIs 80:20 scheme which was introduced in July 2013.
What is 80:20 scheme of RBI?
Under this scheme, the importers are directed to export back 20% of the total gold imports.
It prohibits further imports if this 20% norm is not met by importers. The step was aimed at
curbing rising gold import which led to high Current Account Deficit.
Why there was a deadlock over 80:20 scheme of RBI?
The RBI 80:20 norm left many confused, leading to imports being held up at customs. It
was wrongly interpreted that an importer could not export more than 20%. Whereas, the
case was otherwise as it means that at least 20% is give for exports and one can export
more than 20% of total imports. Due to this confusion the customs officials had stopped
stocks from entering the country. With this clarification, gold imports are likely to resume.
Russia offers India to joint venture in defence manufacturing
Russia proposed to build manufacturing units in India to undertake co-production
of defence equipment and also agreed to set up two major projects in a joint venture for
manufacturing civil choppers and aircraft.
Both nations agreed on collaboration to jointly develop and manufacture civilian aircraft and
helicopters especially for emergency relief and medical purposes. These aircrafts could be
used not only for domestic use but also to export to third country exports. There is also a
joint project under consideration that envisages for manufacturing in Indian factories
different modifications of light helicopters Ka-226T for medical, rescue and other purposes.
Russia has also made a new proposal involving IL-112V.
India demanded market access for Indian pharmaceutical products and asked for regulatory
simplification for supply of Indian generic medicines to Russia.
India and Russia have designed a framework for tracking key priority projects at the
Ministerial level. The sectors covered under this joint understanding include automobile,
industrial and road-building machinery, chemical and petrochemical industry, civil aircraft

14
construction, fertilizers, pharmaceuticals, energy, diamonds, IT, automobiles, and agro and
processed foods.
Union Cabinet approves draft policy for early childhood care and education
Union Cabinet approved the draft policy of the National Early Childhood Care
and Education (NECCE) which envisages for establishing guidelines for the
standardisation of teaching and learning aids, trained manpower, sanitation and hygiene
norms etc. in play schools and day care centres.
How would National Early Childhood Care and Education (NECCE) benefit?
The new National Early Childhood Care and Education (NECCE) policy will benefit
children in playschools and crches as it provides for establishing a national
council to establish guidelines for the standardisation of teaching and learning aids, trained
manpower, sanitation and hygiene norms etc. in these institutions. It will lead to better
regulation and monitoring the quality of care and education provided to children at play
schools and crches across the country. The move is expected to directly
benefit 158.7 million children who areunder the age of 6. The new policy provides for
setting standards for the care givers and also set a curriculum framework. It also stipulates
the minimum qualification required to be teachers at such centres, which will now have to
be registered with the Government under this policy. The policy would be implemented
through National and state ECCE Councils but the Union Ministry of Women and Child
Development will have the authority to make necessary amendments in it.
CCEA nod to establish Information Technology Investment Region (ITIR) in
Hyderabad
September 23rd, 2013
The Cabinet Committee on Economic Affairs (CCEA) has given nod to the set up
of Information Technology Investment Region (ITIR) nearHyderabad, Andhra
Pradesh.
Information Technology Investment Region (ITIR):
The project dedicated Information Technology and Electronic Hardware manufacturing will
be spanned over 50000 acres and is projected to attract investment to the tune of Rs. 2.19
lakh crore over 25 years. It is expected to generate direct employment of 14.8 lakh and
indirect employment of 55.9 lakh.
The feasibility of the project would be studied by the Union Ministry of Road Transport &
Highways, Union Ministry of Urban Development and Union Ministry of Railways.
Government of India has also proposed up-gradation of three key roads and extension of
the Metro Rail from Falaknuma to ShamshabadInternational airport at total cost of Rs. 3275
crore.
The implementation of ITIR will be carried out in two phases. The Phase I will from 2013 to
2018 and Phase II will be from 2018 to 2038.
The CCEA had approved a Policy Resolution to set up Information Technology investment
Regions (ITIRs) in different States and UTs in the country, to promote investment in IT or
ITES and Electronic Manufacturing sector.
As per this policy, the State Government would play the main role in creating the ITIRs.
The infrastructure would be set up or upgraded through Public-Private Partnerships (PPP) to
the extent possible.
The Central Government will provide the necessary viability gap funding for external
physical infrastructure through existing schemes. The Department of Electronics and
Information Technology (DeitY) is the nodal Department of the Government of India to

15
process proposals relating to setting up of ITIRs.
Indian Team reserves berth Wrestling World Cup for the first time
With India finishing 6th in the mens freestyle at the World Championships in Budapest,
Hungary, it also reserved its maiden Wrestling World Cup berth. India qualified for the
big event by finishing sixth behind Iran,Russia, Georgia, Ukraine and the USA. As per FILA
norms, the top 8 teams in the World Championship automatically qualify for the World Cup.
Tata-Singapore new company to be named as Tata SIA Airlines Limited
Tata group initiated the process of incorporating a new company for its proposed aviation
venture with Singapore Airlines as it sought to register this entity as Tata SIA Airlines
Limited.
Tata took the first step by filing an application for registration of this name with the
Registrar of Companies through submission of form 1A. The brand name of the proposed
airline, however, is yet to be announced.
The initial investment in the project is estimated to be $100 million, with Tata Sons injecting
$51 million for a 51% stake and Singapore Airlines pumping in $49 million for the remaining
49%.
This is the third proposal in the aviation sector since the Government permitted 49% FDI in
domestic airlines in September 2012.
Although Tata is already into a separate joint aviation venture with AirAsia and Telstra
Tradeplace for a low-cost airline, there will be no conflict of interest as the two airlines do
not compete in the same space.
The Tatas have a long history of association with civil aviation in India. In 1932 JRD Tata
had started Tata Airlines, which was later in 1946 renamed Air India and was subsequently
nationalized in 1953.
Jawaid Akhtar is the Chairperson of International Coffee Council
Jawaid Akhtar, the Chairman of Coffee Board of India, has been elected as the
Chairperson of the InternationalCoffee Council.
What is International Coffee Organization (ICO)
Some key points about ICO:
Established in 1963 in London.
Initiated in collaboration with the United Nations (UN) to enhance cooperation between
nations that consume, distribute and produce coffee.
It has 39 members consist of 33 exporting nations, 5 importing nations and 1 importing
community (the European Union).
The ICOs highest body is the International Coffee Council, which meets biannually.
ICO represents 97% of the world coffee production and more than 80% of the world
consumption.
Aamir Khan chosen for U.S. award for Satyamev Jayate
Fitch slashed Indias growth projection
Global rating agency Fitch has scaled down its projections on Indias growth to 4.8% for the
current fiscal from the earlier estimate of 5.7% made in June, 2013.
Why did Fitch scaled down Indias growth prospects?
The following are the key reasons behind the cut in growth projections:

16
Weak Indian currency against dollar
Expanding Current Account Deficit (CAD) on account of rising crude prices and falling
rupee
Weak demand
RBI confident of financing CAD without drawing much from reserves
RBI Governor Raghuram Rajan evinced confidence that the country would be able to finance
the Current Account Deficit (CAD) without drawing down much from the forex reserves.
RBI is of the view that CAD could be brought down to $70 billion or even below that. In
fiscal 2012-13, CAD stood at a historic high of 4.8%, or $88 billion, of the GDP. The
government has set a target of 3.7% CAD, or $70 billion, this fiscal.
The efforts of the RBI through FCNR-B and swap facility have yielded a total of nearly $1.4
billion. The market has also recuperated considerably after the US federal bank postponed
the tapering of stimulus. Mr. Rajan stressed on improving countrys economic parameters
regardless of the actions that the U.S. took.
RBI slashes MSF rate to 9.50%
The Reserve Bank of India slashed the Marginal Standing Facility rate (MSF) by 75 basis
points from 10. 25% to 9.50%. The central bank also rolled back minimum daily
maintenance of the Cash Reserve Ratio (CRR) from 99% to 95% keeping the CRR
unchanged at 4%.
RBI has assured that it will reduce the difference between the MSF and repo rate to 100
basis points. RBI raised the repo rate by 25 basis points to 7.50%.
What is MSF?
Marginal Standing Facility (MSF) was introduced by the Reserve Bank of India in 2011-12 as
part of its monetary policy. Under this facility, banks can borrow funds from RBI at 8.25%,
which is, generally, 1% or 100 basis points above the Liquidity Adjustment Facility-repo rate
against pledging government securities.
Banks can borrow funds through MSF when there is a considerable shortfall of liquidity. This
measure was introduced by RBI to regulate short-term asset liability mismatches more
effectively.
What is the difference between Liquidity Adjustment Facility-repo rate (LAF) and
Marginal Standing Facility (MSF) rate?
Banks can borrow from the RBI under LAF-repo rate, which stands at 7.50%, by pledging
government securities over and above the Statutory Liquidity Requirement of 24% (SLR).
Banks cannot sell government securities to RBI that is part of its SLR quota while availing
LAF on the other hand they can do so while availing MSF.
MSF is open to the banks that want to borrow from the RBI even if the credit is costlier by a
percentage point or so. Through MSF banks can borrow funds up to 2% of their Net Demand
and Time Liabilities (NDTL), at current 9.50%. However, it can be availed with securities
above the SLR of 24% and even below.
S. Korean scientists decode Genome of Tigers
Scientists from the Personal Genomics Institute in Suwon, South Koreahave revealed that
they have done first ever DNA analysis of the tiger as well as four other big cats. The DNA
analysis was carried out in the project for aiding the critically-endangered cats for their
survival.
The team of scientists sequenced the genome of a Siberian tiger. They compared this

17
genome with the genome of white Bengal tiger, the snow leopard, the African lion and white
African lion. Scientists found shared characteristics among all these close, yet distinct
species of cats. All these species of tigers included common genes which indicated towards
extreme muscle strength as well as the ability to metabolize hyper-carnivorous diet.
There were variants also which accounted for certain differences such as fur color. The
information from these genomes provides a diverse and crucial data source which can be
used for conservation of these tigers.
As per scientists, of the overall nine subspecies of tiger, four were already extinct in the last
century. These four extinct species included Javan, Balinese, South China and Caspian
tigers. As per estimates, at present the number of wild tigers range from just 3050 to 3950.
Bollywood actor Aamir Khan has been chosen for a U.S. award for his television show
Satyamev Jayate along with renowned American director Kathryn Bigelow and
the International Center on Nonviolent Conflict (ICNC). They will be awarded at the
inaugural awards by the America Abroad Media (AAM) in Washington DC. As per AAM, their
work exemplifies the power of media to inform, educate and empower citizens about the
critical social and public policy issues of our time.
Presidential assent to Rajiv Gandhi National Aviation University Bill, 2013
The Rajiv Gandhi National Aviation University Bill, 2013 has received the assent of the
President of India. It has now been published in the Gazette of India.
What the Rajiv Gandhi National Aviation University Bill, 2013 is all about?
The Bill proposes to create a central university to be named as Rajiv Gandhi National
Aviation University on 26 acre plot at the Indira Gandhi Rashtriya Udaan Academy Rae
Bareli in Uttar Pradesh. The university will be an autonomous body under administrative
control of the Civil Aviation Ministry. The university would promote aviation studies, training
and research and the focus would remain on the emerging areas such as aviation medicine,
aviation safety and security, aviation law, aviation science and engineering, aviation history,
aviation regulation and policy and aviation management. The University will also be a
knowledge partner to safety and security regulators by providing required academic inputs
to help them execute their enforcement responsibility better.
The Bill proposes that although the airports in India will be owned by the Airports Authority
of India, but the construction or development of the airports which are existing, shall be
undertaken on the basis of Public-Private Partnership (PPP).
RBI relaxes for opening new bank branches in Tier I cities
September 22nd, 2013
Now banks will have freedom to open branches in tier-I cities (those with population over 1
lakh) without seeking RBIs approval in each case.
However, as per RBI guidelines, there are some conditions on opening branches,
these are stipulated below:
Banks should open 25% of their branches in a financial year in Un-banked tier-V and tier-
VI centres as earlier.
Total number of branches in tier I centres cant exceed the number of branches opened
in tier-2 to tier-6 centres during a year.
If the banks are unable to open all tier 1 branches during that year, they can carry it
over for next 2 years.
If the banks unable to open requisite branches in tier- II to tier- VI centres for some
reason, it should necessary correct the shortfall in the next financial year.
Obabiyi Aishah Ajibola is Miss Muslimah World 2013

18
Nigerian beauty Obabiyi Aishah Ajibola (21) was announced the winner of the Miss
Muslimah World contest organised by the World Muslimah Foundation in
Jakartha, Indonesia. The event was held exclusively for Muslim women, who were assessed
not only for their appearance (in Islamic dress) but also for their piety, religious knowledge
and understanding of the Quran. Participants were asked to talk to people through their path
to the religion and what wearing a headscarf meant to them.
The Miss Muslimah World is an annual Islamic beauty pageant held at
Indonesia. This year, for the first time, the organizers allowed foreign participants from
Iran, Malaysia, Bangladesh, Brunei and Nigeria to take part.
Mohameddan Sporting Club wins Durand Cup after 73 years
After a long gap of 73 years, Mohammedan Sporting Club (MSC) of Kolkata won the
Durand Cup football tournament. The club vanquished ONGC 2-1 in the 126th edition of the
tournament played at the Ambedkar Stadium in New Delhi. It was in 1940 when MSC last
lifted the Durand Cup when they won the tournament defeating Warwickshire Regiment.
The Durand Cup:
The inaugural Durand Football Tournament was held at Simla in the year 1888 by Sir Henry
Mortimer Durand, who was then, the Foreign Secretary to Government of India. Durand is
the third oldest football tournament in the world and oldest in Asia and India.
Govt to set up worlds largest solar power plant in Rajasthan
The government has begun the process of building 4,000 MW ultra mega green solar
power project near Sambhar lake in Rajasthan. The project which has been named
as Sambhar Ultra Mega Green Solar Power Project is being set under the Department
of Heavy Industry (DHI) in the 23,000 acre area of Sambhar Salts Limited (SSL),
subsidiary of Hindustan Salts Limited (HSL) located in Rajasthan. It will be the worlds
largest solar based power project
First Phase Sambhar Ultra Mega Green Solar Power Project:
In the first phase the project will generate 1,000 MW which will be commissioned in 3 years
i.e. by the end of 2016.
Partners in the development of the first phase are BHEL, Solar Energy Corporation
of India, Power Grid Corporation, Satluj Jal Vidyut Nigam and Rajasthan
Electronics and Instruments Ltd. The development of the later phases will be based on
the experience gained during implementation of the first phase of project.
Presidents assent to Prohibition of Employment as Manual Scavengers and Their
Rehabilitation Bill, 2013
The Prohibition of Employment as Manual Scavengers and Their Rehabilitation Bill, 2013 has
received the assent of the President of India. It has now been published in the Gazette of
India on September 19, 2013.
What are the key points in the Prohibition of Employment as Manual Scavengers
and their Rehabilitation Bill 2012?
According to the Bill:
The employment of manual scavengers, the manual cleaning of sewers and septic tanks
without protective equipment, and the construction of insanitary latrines is prohibited.
It provides for rehabilitation of manual scavengers and their alternative employment.
Each local authority, cantonment board and railway authority is responsible for surveying

19
insanitary latrines within its jurisdiction. They shall also construct a number of sanitary
community latrines.
Each occupier of insanitary latrines shall be responsible for converting or demolishing the
latrine at his own cost. If he fails to do so, the local authority shall convert the latrine and
recover the cost from him.
The implementing authorities shall be District Magistrate and the local authority.
Offences under the Bill shall be cognizable and non-bailable, and may be tried summarily.
Bharatiya Mahila Bank to recruit POs
Indias first all-women bank, Bharatiya Mahila Bank, which expected to be operational
from November 2013, has invited online applications from female candidates for the 115
Probationary Officer posts. The last date for online application is till September 30, 2013.
About Bharatiya Mahila Bank:
Bharatiya Mahila Bank is Indias first all-women public sector bank. The bank proposes to
complete the first six branches at Mumbai, Delhi, Kolkata, Chennai, Indore and
Guwahati by October 2013. The Government has already approved Rs 1,000-crore seed
capital for the bank as announced by Finance Minister P. Chidambaram in Budget 2013-14.
The bank was already given in-principal approval by the RBI and thebanking company is
being set up.
Headquarter of Bharatiya Mahila Bank will be in Delhi.
Objective: One of the key objectives of Bhartiya Mahila Bank is to focus on the banking
needs of the women and promote economic empowerment. It will also addresses the
gender related issues and will be helpful in financial inclusion.
Tata and Singapore Airlines ink MoU to set up a new full-service airline
A Memorandum of Understanding (MoU) was signed between Tata Sons
and Singapore Airlines to enter into a joint venture to set up a full-service airline. Both
the partners have applied for Foreign Investment Promotion Board approval.
The initial investment in the project is estimated to be $100 million, with Tata Sons injecting
$51 million for a 51% stake and Singapore Airlines pumping in $49 million for the remaining
49%.
This is the third proposal in the aviation sector since the Government permitted 49% FDI in
domestic airlines in September 2012.
Although Tata is already into a separate joint aviation venture withAirAsia and Telstra
Tradeplace for a low-cost airline, there will be no conflict of interest as the two airlines do
not compete in the same space. AirAsia has been fully aware of this joint venture and has no
objection to the deal.
Govt gives nod to 10% hike in DA, to benefit 80 lakh employees, pensioners
The Union Cabinet has given approval to a 10% additional instalment of Dearness Allowance
(DA) to Central Government employees and Dearness Relief (DR) to pensioners with effect
from July 1, 2013. This will benefit around 50 lakh serving employees and 30 lakh retired
employees.
The latest increment will increase the effective rate of DA and DR to 90% and will cost
government an additional Rs 7,253 crore in 2013-14 and Rs 10,879 crore 2014-15 onward.
About Dearness Allowance (DA) to Central Government employees and Dearness
Relief (DR) :
DA and DR are revised twice a year, first in January 1 and second fromJuly 1. The

20
revisions are based on the change in the Consumer Price index for Industrial Workers
(CPI-IW).
Draft norms on new Company Law make companies to disclose managements pay
As per norms stipulated in the second set draft rules for the new company law, listed firms
have been mandated to disclose in the boards report the ratio of the remuneration of
each director to the median remuneration of employees.
The new company law seeks to improve the regulatory framework around disclosure of
managerial remuneration.
The new rules also prohibit companies from issuing shares with differentiated rights as to
voting, dividend or otherwise unless certain conditions are fulfilled. A key condition is that
shares with differential rights should not exceed 25% of the post issue paid up capital.
It has also been stipulated that the company should have a 10% dividend payment track
record for the last 3 financial years immediately preceding the financial year in which such
shares are to be issued.
US puts Prudential Financial into too big to fail list
The US Financial Stability Oversight Councils (FSOC) designated insurance company
Prudential Financial to its list of too big to fail institutions. The company has become the
third non-bank firm placed under a tighter regulatory regime to reduce risks to the financial
system.
What are too big to fail institution?
This is a popular term used in the US for the firms which are so large and so interconnected
that their failure would be disastrous to the economy. As per US Federal Bank Chief Ben
Bernanke A too-big-to-fail firm is one whose size, complexity, interconnectedness, and
critical functions are such that, should the firm go unexpectedly into liquidation, the rest of
the financial system and the economy would face severe adverse consequences. The idea
proposes that in a crisis situation these too-big-to-fail firms should be given government
assistance not out of favoritism or particular concern for the management, owners, or
creditors of the firm, but because they recognize that the consequences for the broader
economy of allowing a disorderly failure greatly outweigh the costs of avoiding the failure in
some way. Common means of avoiding failure include facilitating a merger, providing credit,
or injecting government capital, all of which protect at least some creditors who otherwise
would have suffered losses.
As per FSOC naming financial institutions too big to fail companies is an important tool to
mitigate risks posed by those companies, fill gaps in their overall supervision, tighter
control, and provide enhanced capital standards under which they must operate.
Which are the three non-bank financial companies designated as too big to fail
institutions?
The three companies designated as too big to fail are:
1. Prudential Financial
2. American International Group
3. General Electric Capital Corp.
What is Financial Stability Oversight Council (FSOC)?
The FSOC is a United States federal government organization, which operates under the US
Treasury. It was established under the DoddFrank Wall Street Reform and Consumer
Protection Act, which came up in response to 2008 financial crisis and was signed into law in
2010. FSOC has broad authorities to identify and monitor excessive risks to the

21
U.S. financial system arising from the distress or failure of large, interconnected bank
holding companies or non-bank financial companies, or from risks that could arise outside
the financial system; to eliminate expectations that any American financial firm is too big
to
fail; and to respond to emerging threats to U.S. financial stability.
RBI hikes repo rate by 25 basis points to 7.5%
In a surprising move, the Reserve Bank of India Governor Raghuram Rajan, in his maiden
mid-quarter monetary policy review, hiked theshort-term lending (repo) rate to
7.5%, seeking to control inflation. The Cash Reserve Ratio (CRR) was left untouched
at 4%.
To ease liquidity, the Marginal Standing Facility (MSF) rate, at which banks borrow from
the RBI, was reduced to 9.5% from 10.25% and the minimum daily maintenance of the
CRR was lowered to 95%.
In reaction to RBIs decision the rupee slipped 46 paise to close at 62.23 against the dollar
in line with a sharp decline in local stocks.
However, RBI Governor Raghuram Rajan has made his stance clear that RBI wants lower
inflation and aims to curb it to 5% mark.
China launches its first direct bank
China launched its first direct bank, a new mode of providing onlinebanking services without
any entity outlets. The direct bank has been launched by the Bank of Beijing in co-operation
with the Netherlands-based ING Group.
What is a Direct Bank?
A direct bank is a bank without any branch network that offers its services remotely via
online banking and telephone banking and may also provide access via ATMs (often
through interbank network alliances), mail and mobile. By eliminating the costs associated
with bank branches, direct banks can make substantial savings which they may pass on to
clients via higher interest rates or lower service charges.
September 21 observed as International Day of Peace
September 21st, 2013
International Day of Peace was observed on September 21 across the world to
acknowledge the efforts of those who have strived to end conflict and promote peace. The
International Day of Peace is also observed as a day of ceasefire. The theme for the year
2013 is Education for Peace.
About International Day of Peace:
The International Day of Peace was established in 1981 by resolution 36/67 of the United
Nations General Assembly to coincide with its opening session, which was held annually on
the third Tuesday of September. The first Peace Day was observed in September 1982. In
2001, the General Assembly by unanimous vote adopted resolution 55/282, which
established 21 September as an annual day of non-violence and cease-fire.
U.N. finds extensive use of chemical weapons in Syria
As per the report released by the U.N., the experts have found large-scale use of banned
chemical weapons in Syria. The U.N. inspectors have found clear evidence that Sarin
Gas killed hundreds of people in an attack on Ghouta near Damascus on August 21,
2013.
The attack triggered threats by the US and other western nations of a military action against

22
President Bashar al-Assad regime. The United States says more than 1,400 people died
in Ghouta. Mr. Assad has rejected the allegations of using sarin and blamed opposition
rebels for the attack whereas Western nations say only the government has such weapons.
Recently, the US and Russia agreed to destroy the Syrian stockpiles of chemical weapons. A
U.N.-mandated independent panel of inquiry into rights violations in the Syria war
announced separately that it was investigating 14 alleged chemical weapons attacks in
Syria. The latest findings are likely to affect the future course of action by the UN on Syria
issue. However, Russia has made it clear that it is not in favor of any military strike against
Assad regime.
Indian Navy to get Vikramaditya in mid-November 2013
The Indian Navy will soon get its second aircraft carrier, 45,000-tonne Vikramaditya as the
warship has successfully completed all aviation trials in the White Sea. Formerly Admiral
Gorshkov which has been renamed INS Vikramaditya, the ship has been undergoing refitting
and refurbishment at the Sevmash shipyard in the Russian city of Severodvinsk. It is likely
to be delivered to the Indian Navy in mid-November. Currently, the Navy operates INS
Viraat. Indias first indigenous aircraft carrier, Vikrant, is being built by the Cochin
Shipyard, and it is likely to be ready for commissioning in 2017-18.
Salient features of INS Vikramaditya:
Russian aircraft carrier which was originally commissioned in 1986 and decommissioned in
as she was too expensive to operate on a post-Cold War budget.
It has been purchased by India at a final price of $2.35 billion.
Achieved its top speed of 32 knots
MiG-29K fighter jets successfully completed take-offs and landings on its deck.
284-metre-long and 60-metre-high, can easily carry 30 fighter jets and helicopters, is
fitted with latest communication systems, protective coating, a telephone exchange,
pumps, hygiene and galley equipment, lifts and many more facilities.
Microsoft Corp to buy back up to $40 billion of shares
Technology giant Microsoft Corp increased its quarterly dividend by 22% to 28 cents per
share and launched a new share buyback program of up to $40 billion. Microsoft has been
going through a slew of changes, with Chief Executive Steve Ballmer announcing to retire
soon, just weeks after the companys poor performance on sales of its new Surface
tablet. Microsoft is likely to buy Nokias phone business in this month and would license
Nokias patents for 5.44 billion euros ($7.2 billion).
RBI tightens norms for companies lending against gold
As per the notification by the RBI, the central bank has tightened rules for finance
companies which lend against gold, in line with the suggestions of an internal panel. As per
the new rules:
The lenders need to value the pledged gold at the average closing price of 22-carat gold
for the preceding 30 days as quoted by the Bombay Bullion Association Ltd, to arrive at
the loan-to-value ratio. The ratio would remain at 60% for loans against jewellery.
At present, there is no standard method for arriving at the value of gold accepted as
collateral and valuation is arbitrary.
The process by which lenders auction gold when a borrower defaults has also been
streamlined by the RBI. Lenders will now need to declare a reserve price for the pledged
ornaments.

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Lenders would also need RBI clearance to open branches exceeding 1,000.
New branches would not be allowed without sufficient storage facility for gold.
Large scale irrigation Projects no more feasible: Jairam Ramesh
Minister for rural development Jairam Ramesh clarified that with the enactment of Land
Acquisition Bill acquisition of land for another major irrigation project like the Sardar Sarovar
Dam would not be feasible. He held that enormous and major irrigation projects are no
longer practicable as it requires large-scale land acquisition and displacements of
habitations.
What is the controversy about Sardar Sarovar Dam?
The Sardar Sarovar Dam is a gravity dam on the Narmada River near
Navagam, Gujarat in India. The dam took form in 1979 as part of a development scheme
to increase irrigation and produce hydroelectricity. It is the largest dam and part of the
Narmada Valley Project, a large hydraulic engineering project involving the construction of a
series of large irrigation and hydroelectric multi-purpose dams on the Narmada River. The
dam is one of Indias most controversial dam projects and its environmental impact and net
costs and benefits are widely debated. The World Bank was initially a funder of the SSD, but
withdrew in 1994. The project led to large scale displacement of tribal people inhabiting in
the project region as well as damage to environment. The development of the project
witnessed protests including Narmada Bachao Andolan. Land acquisition, displacement
and rehabilitation of ousted families still remains a matter of conflict and dispute between
the state governments and citizens.
Responding to difficulties faced by the state governments in implementing, some provisions
of the Land Acquisition Bill, someexemptions have been made. These are:
1. Land or compensation may be provided to the displaced family but not both. And land
may be provided wherever possible. However, this exemption will not apply when the
affected family belongs to the Dalits and tribals community. For SC, ST the government
will have to provide land for land.
2. Waiver has been given for conduction the social impact assessment process since the
environment impact assessment asked all the relevant questions about displaced and
affected families.
Government to aid textile start-ups via equity fund model
Considering the huge export potential of some areas like textile, leather and toys,
Government is planning to fund and provide workspace to start-ups in these sectors. The
project will be tested in the textile sector where space will be provided to entrepreneurs at
textile parks while funds will be given through the state-supported Textile Equity Fund.
The Ministry of Textile is working with SIDBI to launch the first state-supported, dedicated
Textile Equity Fund in the next three months, which will ensure easy availability of equity for
start-ups as well as expansion for smaller enterprises. Government aims to replicate the
success story of the IT sector which boomed on similar models. If successful, the model will
be replicated in leather and toys industries.
About 40 textile parks have already been established in the country, while another 20 were
announced last year to boost the competitiveness of the sector. Textile has a share of about
14% to industrial production, 4% in the GDP and 17% in the export earnings. The sector is
the second-largest employment provider after agriculture
Voyager 1 crosses Solar System, enters interstellar space

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Voyager 1 became the first man-made object to cross the Solar System and enter into
interstellar space on August 25, 2012. The space probe is at a distance of more than 19
billion km from the Sun.
What is Voyager 1?
Voyager 1 is a space probe launched by NASA in 1977 alongside its identical sister probe
Voyager 2 to study the outer Solar System and the interstellar medium the physical space
within a galaxy not occupied by stars or their planetary systems.
Salient facts about Voyager 1:
Flew by Jupiter in 1979 and Saturn in 1980, concluding its primary mission and became
the first spacecraft to transmit detailed images of the two planets and their moons.
In 1990, 9.6 billion km from Earth, it turned around and clicked the entire Solar System.
Since then it has been flying toward the edge of the Solar System at some 17 km/s,
surrounded by a hot sea of charged particles called plasma.
Crossed the heliopause and entered interstellar space on August 25, 2012.
Nina Davuluri : First Indian American to become Miss America
Nina Davuluri has become the first winner of the Miss America 2014 from an Indian
background. Previously, she won Miss New York 2013.
Nina Davuluri was born in Syracuse, New York to Telugu parents of Hindu faith. Her mother
Sheila Ranjani, software engineer, and father Davuluri Koteshwara Choudhary, gynecologist,
both hailed originally from Vijayawada, Andhra Pradesh, India.
Patna to build a Science City: Nitish Kumar
With an aim to nurture scientific temper among children, the Bihargovernment has decided
to build a Science City with state-of-the-art technology.
The Science City would cost Rs. 500 crore and is proposed to be built on 15 acres of land,
near the Moin-Ul-Haq Stadium in Patna. The firm Lord Cultural Associate has been entrusted
with the task of preparing the concept for the city. A village dedicated to alternative energy
sources would also be part of this scientific centre.
Apex court backs governments decision to charge deregulated diesel prices to
bulk oil buyersC
The governments decision to charge market prices for diesel sold to bulk buyers such
as defence, railways and transport corporations has been endorsed by the Supreme Court.
The decision had been stayed by some courts after transport corporations challenged it.
The apex court held that the decision by the government was right. As per the court, due to
subsidy on oil, declining value of rupee and expanding Current Account Deficit (CAD)
countrys economy is suffering. The court conceded to the governments rationale for
increasing prices of petroleum prices in a phased manner over the years.
Governmet sanctions 158 Eklavya Model Residential Schools for ST students
Govt. of India has approved a total of 158 Eklavya Model Residential Schools (EMRSs) for
Tribal students out of grants under Article 275(1) of the Constitution of India in 23 states
out of which 111 schools have become fully functional with all facilities. Gujarat has been
sanctioned 22 schools which is the highest for any state followed by Madhya Pradesh(20)
and Rajasthan (17). Chhattisgarh and Odisha have been sanctioned 16 schools each.
All the facilities for a proper study environment like adequate number of class rooms,
computer and science laboratory , library , recreation room, hostels for students and

25
housing facilities for the teaching and other supporting staff are made available in the
EMRSs. Further, the school buildings have been made accessible to students with
disabilities.
What are the objectives of Eklavya Model Residential Schools?
The objective of EMRS is to provide quality middle and high leveleducation to Scheduled
Tribe (ST) students in remote areas, not only to enable them to avail of reservation in high
and professional educational courses and as jobs in government and public and private
sectors but also to have access to the best opportunities in education at par with the non ST
population. This would be achieved by:
Comprehensive physical, mental and socially relevant development of all students enrolled
in each and every EMRS. Students will be empowered to be change agent, beginning in
their school, in their homes, in their village and finally in a larger context.
Focus differentially on the educational support to be made available to those in Standards
XI and XII, and those in standards VI to X, so that their distinctive needs can be met.
Support the annual running expenses in a manner that offers reasonable remuneration to
the staff and upkeep of the facilities.
Support the construction of infrastructure that provides education, physical,
environmental
and cultural needs of student life.
Researchers develop worlds first self-healing polymer
The researchers, from the CIDETEC Centre for Electrochemical Technologies in San
Sebastian, Spain have created the worlds first self-healing polymer that spontaneously and
independently repairs itself without any intervention.
How does the self-healing polymer work?
The scientists developed the self-healing thermoset elastomers from common polymeric
starting materials using a simple and inexpensive approach. A double decomposition
reaction of aromatic disulphides, which naturally exchange at room temperature, causes the
regeneration. The polymer behaves as a Velcro-like sealant or adhesive, displaying an
impressive 97% healing efficiency in just 2 hours.
What could be the use of self-healing polymer?
The new material could be used to improve the security and lifetime of plastic parts in
everyday products such as electrical components, cars and even houses.
Govt. establishing INOIC : Indias sovereign wealth fund
The Government of India is establishing a company India Overseas Investment
Corporation (INOIC) under the Ministry of Financesimilar to a sovereign wealth fund to
impart financial power for securing access to overseas natural resources.
What is INOIC?
India Overseas Investment Corporation (INOIC) will be like Indias sovereign wealth
fund which will function as a development finance institution with the specific mandate to
provide equity and debt to Indian public sector enterprises (PSEs) for securing natural
resources abroad.
How would INOIC function?
INOIC would like the governments holding arm and registered with RBI as a nonbanking
financial institution with a paid-up capital of Rs 10 crore. The company will raise funds
through rupee bonds of 15-20 years with sovereign guarantee. State-run entities, banks and
financial institutions will subscribe to these papers using their surplus funds. It will not

26
borrow from the RBI unlike IIFCL. The company will purchase or swap its rupee funds with
foreign currency from the RBI at market-related rates. This will provide for a marketoriented
mechanism and avoid management of temporary surplus forex funds. The
formation of the company will follow amendments in guidelines so that state entities dont
have to seek Public Investment Boards clearance if the quantum of overseas investment is
within INOICs ambit. The company will act as a singlewindow clearing and financing
framework that will be more expeditious than the current system involving multiple layers of
approvals for foreign acquisitions. Basically, it means ready cash for an entity acquiring
assets overseas.
Note: Formation of INOIC will place India into a select club of economies such as
US, Russia, China, South Korea, Singapore, Malaysia, Brunei,Qatar and UAE that have
pushed overseas acquisitions and businessthrough such funds.
Naxalites using RTI as a weapon to target contractors
As per police investigation, the Maoists are using the Right to Information law to get the
details of the contractors and businessmen for extortion. They use proxies to file Right to
Information applications to collect data about government projects in order to target
businessmen and contractors for extortion.
Police have recovered RTI documents from a training camp of the Peoples Liberation Front
of India, once a faction of the CPI(Maoist), in Torpa forests, which have details of 30-odd
government projects under Khunti district rural development agency, with names of
contractors and estimated costs.
IITs agree to get accredited by NBA
After years of procrastination, IITs have agreed to get themselves accredited by
the National Board of Accreditation (NBA). However, the HRD Ministry has given these
premier institutions freedom to conduct the review themselves and submit the report to the
NBA. IITs have been asked to put more efforts to reinvigorate its brand in order to enhance
its chances of making it to esteemed QS Ranking of best institutions.
The internal departmental review would be completed by December 2013. For external peer
review, a panel of ten names of eminent persons from industry and academia would be sent
to the HRD ministry by October 2013.
How would accreditation of IITs help India?
IITs accreditation would help India become a part of the Washington
Accord, an international pact among accrediting agencies of 14 countries that recognizes
engineering degree programmes of each other. India is currently a provisional member of
the Washington Accord. One of the main criteria for any country to be part of the Accord is
that its engineering degrees should be accredited.
Other Decisions:
The HRD Ministry also took a number of decisions on the basis of the recommendations
made by the Anil Kakodkar committee in order to increase the number of PhDs from IITs. As
per Kakodkar panel, at least 10,000 PhDs should be graduating from 2024-25. The HRD
Ministry has also requested the chairman of National Coordination Board (NCB) of Graduate
Aptitude Test in Engineering (GATE) to allow third year BTech students from centrally
funded technical institutions with Cumulative Performance Index of 7.00 to appear in GATE.
The matter is under consideration of Kakodkar panel.
South East Asian countries aim to get rid of Measles by 2020: WHO

27
As per the World Health Organization (WHO), South East Asian countries have set a target
to wipe out measles and control rubella and congenital syndrome by the year 2020. The
effort is estimated to cost $ 800 million.
What is the status of measles in South East Asia region?
An estimated 8 million children are vulnerable against measles in South East Asia region as
they are not vaccinated against the disease. Measles accounted for the death of over 70,700
children in the region in 2011, which was about 45% of global measles deaths.
What is measles?
Measles is an infection of the respiratory system caused by a virus, specifically
a paramyxovirus of the genus Morbillivirus which are enveloped, single-stranded,
negative-sense RNA viruses.
Symptoms: Fever, cough, runny nose, red eyes and a
generalized, maculopapular, erythematous rash. The disease is contracted by children with
low immunity and can cause acute respiratory problems, diarrhoea and pneumonia. It can
also result in disabilities such as visual impairment.
Transmission: Through respiration (contact with fluids from an infected persons nose and
mouth, either directly or through aerosol transmission).
What is the status of measles in India?
Although the expansion of vaccine coverage India has significantly reduced the child
mortality due measles, the disease continues to remain a major cause of death among
children, claiming between 50,000 to 100,000 lives every year. At present, only 70% of
children in the country are protected against it.
How can measles be prevented?
Measles can be prevented by a single dose of vaccine if given when the child is between 9
and 12 months.
China unveils worlds first deep UV laser device
China has become the first country in the world to possess Deep Ultraviolet (DUV)
solidstate
laser device. The device was launched by the Chinese Academy of Sciences (CAS)
after its successful testing. The device marks the worlds first-ever output of 1,064-
nanometers 6-harmonic frequency multiplication, shortening the diode-pumped solid-state
laser (DPL)s wavelength to 177.3nm.
What can be the use of Deep Ultraviolet (DUV) solid-state laser device?
The device can be used to enhance the production of grapheme, superconductors,
insulators and catalysis. The device which uses Potassium Beryllium Fluoroborate (KBBF)
prism coupling device-based DPL source features a smaller size, higher energy resolution
and higher photon influx density.
Epsilon: Japans new, cheaper rocket successfully launched
Japans Aerospace Exploration Agency or JAXA successfully launched a new rocket
named Epsilon which is cheaper and more efficient than its previous rockets.
About Epsilon:
Japans three-stage rocket which uses solid-fuel propellant
Launched from a space centre on Japans southern main island of Kyushu
Main payload: SPRINTA First space telescope designed to observe other planets.
It is the first new rocket design for Japan since the H2A was introduced in 2001. The H2A
remains Japans primary rocket but JAXA hopes the Epsilon will lead to improvements in

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the more costly H2A program.
It costs about 3.8 billion yen ($40 million), one-third the cost of the H2A.
Extensive use of computer technology enables it to be controlled on a single laptop.
US, Russia agree to eliminate Syrias chemical weapons
The long intensive negotiations between Russia and the United States in Geneva on the
issue of chemical weapons of Syria have reached a deal on a timetable for the fast
elimination of Syrias stockpiles of chemical weapons, with the provision that the
noncompliance
by Damascus would mean that the United Nations Security Council will direct the
future course of action.
What is the agreement between Russia and the United States on Syrias chemical
weapons?
The framework agreement envisages that all Syrian chemical weapons will either be
removed or destroyed by the middle of 2014. By November 2013, the inspectors belonging
to the Organisation for the Prohibition of Chemical Weapons (OPCW), the UN and other
supporting staff enter Syria. They will have the authority to inspect any and all sites in the
country. The security of inspectors will be the responsibility of Syrian government and the
opposition. The disposal of chemical weapons will take place under the embedded
guidelines of the Chemical Weapons Convention.
The agreement is in the direction to create a Middle East zone free of weapons of mass
destruction a move that would also cover the elimination of Israels atomic weapon
stockpiles. As per experts, a zone free of mass destruction weapons in West Asia would
encourage Syria to cooperate as it had stockpiled chemical weapons to deter a nuclear
armed Israel.
Under the plan, the Syrian government has been given one week to handover the stock of
its chemical weapons arsenal. The deal covers not only the destruction of weapons but also
capabilities to produce and refine chemical arms. In turn, Syria will become a member of the
OPCW, which outlaws the production and use of these arms.
What if Damascus is unable to abide by the provisions of the agreement?
There are differences between the US and Russia over the role of the Security Council in
case the Syrian government is unable to strictly abide by the provisions of the agreement.
While the Russians are not in favor of penalizing Syria under Chapter VII provisions of
the UN charter that allow the use of force, the US thinks that the provision could be
invoked that allow action by air, sea, or land forces as may be necessary to maintain or
restore international peace and security in the event other measures dont work.
RBI invites bids to implement global Legal Entity Identifier system
In order to have a better control on financial transactions, such as equity and currency
derivatives, the Reserve Bank of India has invited limited bids from about six entities,
including depositories, depository participants and custodians, to issue unique
identification codes to market participants.
The RBI will select one or two entities to assign them the responsibility of implementing a
global Legal Entity Identifier (LEI) system that will uniquely identify parties to financial
transactions.
What is Legal Entity Identifier (LEI) system?
LEI is a unique global identifier for each legal entity operating in the financial markets. The
need to have such a system was felt after the global financial crisis of 2008. The system will

29
work under the supervision of the RBI. LEI will aid in identification of participants in
different trading, clearing and settlement systems, thus enabling aggregation of exposures
and identification of linkages across markets as well as institutions, both domestic as well as
global.
What are the objectives of LEI system?
The key objectives of Legal Entity Identifier (LEI) system are:
Improved risk management in firms
Better assessment of micro- and macro-prudential risks
Facilitation of orderly resolution
Containing market abuse and curbing financial fraud
Enabling higher quality and accuracy of financial data overall
How would the LEI system help?
As per Financial Stability Board, the LEI system would cut operational risks within firms
by extenuating the need for tailored systems to reconcile the identification of entities and
support aggregation of risk positions and financial data, which inflict substantial burdensome
costs across the economy. It would also facilitate easy processing.
What is Financial Stability Board (FSB)?
FSB is an international body which was established after the 2009 G-20 London summit in
April 2009 as a successor to the Financial Stability Forum. FSB work is to coordinate at the
international level the work of national financial authorities and international standardsetting
bodies and to develop and promote the implementation of effective regulatory,
supervisory and other financial sector policies. The Board includes all G-20 major
economies, FSF members, and the European Commission. It is headquartered in
Basel, Switzerland.
Who are the members of FSB form India?
The Reserve Bank of India (RBI), the Securities and Exchange Board of India
(SEBI) and the Ministry of Finance are the members of FSB from India.
eBay opens Development Centre in Bangalore
Online e-commerce company eBay has opened a new development centre in Bangalore and
plans to recruit 1,000 IT professionals by 2016. eBay already has two development centers
one each in Chennai and Mumbai.
The centre will work on technologies relating to eBay and Paypal, a company that it acquired
which allows payments and money transfers to be made through the Internet.
The new development centre will work on mobile commerce-related apps, design for the
eBay Web site, analytics and online security solutions for traditional and mobile channels of
commerce.
Definition of control in relation to FDI notified by RBI
The Reserve Bank of India notified the definition of term control in the context of Foreign
Direct Investment (FDI) and revised the list of states where FDI is allowed in multi-brand
retail.
What is Control as per RBI notification?
Control shall include the right to appoint a majority of the directors or to control the
management or policy decisions including by virtue of their shareholding or management
rights or shareholders agreements or voting agreements. The tighter definition is to ensure
foreign investors do not acquire indirect control in sectors where FDI is prohibited or capped
at 49%.

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States ready to implement FDI in Multi-Brand Trading:
The list of states which have given consent to implement FDI in Multi-Brand trading has
been modified with the addition of Himachal Pradeshand Karnataka. With this, the number
of states and Union Territories which have given consent to implement the FDI policy on
multi-brand retail has increased to 12.
Latest in FDI:
Norms for multi-brand retail trading have been relaxed and the mandatory 30% local
sourcing norms for companies have also been eased.
FDI in insurance stands at 26%.
The cap in telecom enhanced to 100% with automatic route allowed for FDI of up to 49%
Rupee at present level is well corrected, gaining stability: C Rangarajan
As per Prime Ministers Economic Advisory Council Chairman C Rangarajan, the rupee
at the current level is well corrected and stability is returning to the forex market, amidst
volatility in the exchange value of the local currency.
The rupee has recuperated to 63 level after plunging its life-time low of 68.85 towards
August-end. As per C Rangarajan rupee will strengthen with increase in capital inflows and
fall in Current Account Deficit (CAD).
India to buy six more C-130J Super Hercules aircraft
The Defence Acquisition Council (DAC) headed by Defence Minister A K Antony has given
approval for the purchase of 6 more C-130J Super Hercules aircraft from the US in a deal
worth over Rs 4,000 crore. It will now need a final approval from the Cabinet Committee on
Security.
The DAC also gave nod for placing an order for 235 T-90 tanks worth Rs 6,000 crore with
the Ordnance Factory Board. These battle tanks would be manufactured under the
Transferof-
Technology agreement India has inked with Russia.
The Indian Air Force already has six C-130J planes which are deployed at its Hindon
airbase. The new lot of six planes will be positioned at Panagarh in West Bengal, which
would be headquarters of the proposed Mountain Strike Corps of the army along
the China border.
Factbox: C-130J Super Hercules
Manufactured by the United States.
Worlds most advanced and tactical aircraft.
Primarily designed to support Indias special operations requirement.
Equipped with an Infrared Detection Set (IDS), the aircraft can perform precision low-
level
flying, airdrops and landing in blackout conditions.
Self-protection systems and other features are included to ensure aircraft survivability in
hostile air defense environments. The aircraft also is equipped with air-to-air receiver
refueling capability for extended range operations.
Ideally suited to Indias mission environment, which often involves operating out of
austere, high-elevation airstrips in hot conditions.
Powered by four Rolls Royce AE2100 engines and Dowty six bladed props which provide
the aircraft with tremendous power.
The aircraft has already demonstrated its responsiveness during the
recent Uttarakhand flood disaster and 2012Sikkim earthquake where it played a

31
major role in relief operations.
The aircraft demonstrated its agility when IAF landed it at the worlds highest
airstrip in Daulat Beg Oldi, in J&K, the place where Indian and Chinese troops
had a stand-off recently.
SEBI relaxes KYC norms for foreign investors
In a bid to attract foreign investors to Indian capital markets, stock market regulator SEBI
eased registration and disclosure norms for low-risk foreign investors and exempted low-risk
overseas entities from onerous paper work.
SEBI has formed 3 categories which classifies foreign investors eligible to make
portfolio investments in the country as per their risk profile. They are:
Category I: Government and other sovereign entities, it is the lowest-risk category.
Category II: Well-regulated entities such as mutual funds, insurers, investment trusts,
banks, university funds and pension funds.
Category III: Corporate bodies, individuals and family offices.
Those with low-risk profile, the Know Your Client (KYC) requirements, which entail
submission of various documents and disclosures to get registered and operate in Indian
markets, would be relaxed.
SEBI has also exempted Category I investors from submission of documents such as
financial statements and board resolution papers, while their top management, partners,
directors, trustees and authorised signatories would not be required to submit proof of
identity, proof of address and photographs.
In addition, such entities would be exempted from submission of the list, identity proof,
address proof and photographs for their ultimate beneficial owners.
Why has SEBI taken measures to ease KYC norms?
The central objective behind SEBI relaxing KYC norms for low risk investors is to make it
easier for the foreign investors to enter the countrys market and make decisions. The step
has been taken at a time when concerns are being raised about outflows of foreign capital
and weakening of the rupee against the dollar and other foreign currencies. SEBI is hopeful
that these measures will attract more capital towardsIndia.
Union Cabinets nod to RBI for buying $4.3 bn World Bank bonds
The Reserve Bank of India (RBI) was given nod by the Union Cabinet to invest $4.3 billion in
special bonds of the World Bank as it would help in securing extra funding from the
multilateral lending agency forinfrastructure development projects.
How would this move benefit?
With this decision, RBI will be able to sign a special private placement bond agreement with
the International Bank for Reconstruction and Development, the World Banks lending
arm, which will provide additional borrowing space.
India, Kyrgyzstan agree to bolster defence ties
India and Kyrgyzstan have agreed to further strengthen bilateral defencecooperation in
areas, including training, UN peacekeeping and defence industry. It was decided at a
meeting between Defence Minister A K Antony and Kyrgystan Defence Minister Taalaibek
Omuraliev who is on India visit.
Indo-Kyrgyztan relations:
India has traditionally warm and friendly political ties with the Kyrgyz Republic. Kyrgyzstan
also supports Indias stand on Kashmir and have welcomed the ongoing peace process.

32
Kyrgyzstan also supports Indias claim for permanent seat at the United Nations Security
Council and Indias role in the Shanghai Cooperation Organization(SCO).
On the trade side, Indo-Kyrgyz trade totaled US$23.56 million in 2010-11. Indias exports to
Kyrgyzstan was US$22.56 million whereas Kyrgyz exports to India amounted to only
US$1.2M. Apparel and clothing, leather goods, drugs and pharmaceuticals, fine chemicals,
and tea are some of the important items in Indias export basket to Kyrgyzstan. Kyrgyz
exports to India consist of raw hides, metalifers ores and metal scrap etc.
Liberian President Ellen Johnson Sirleaf honored with Indira Gandhi Peace Prize
Indian President Pranab Mukherjee conferred the Indira Gandhi peace prize on Liberian
President Ellen Johnson Sirleaf in recognition of her inspiring efforts for ensuring the return
of peace, democracy, development, security and order in Liberia and for her strong interest
in the consolidation and betterment of relations between both the countries.
About Ellen Johnson Sirleaf:
Current President of Liberia.
Earlier, served as Minister of Finance under President William Tolbert from 1979 until the
1980 coup dtat, after which she left Liberia and held senior positions at various financial
institutions.
Won the 2005 presidential election and took office on 16 January 2006, and she was a
successful candidate for re-election in 2011.
First democratically elected women Head of State of any African country.
Awarded 2011 Nobel Peace Prize, jointly with Leymah Gbowee of Liberia and Tawakel
Karman of Yemen.
Oil production kicks off in Kashagan, worlds largest oil field outside the Middle
East
Worlds largest oil field outside the Middle East- Kashagan field inKazakhstan started
production of crude. Although the starting production is just 26,000 barrels a day, the
reservoir promises about 1.5 million barrels of oil a day to global output in future. If it
attains that level, the oil will be equivalent to about 1.6% of the worlds total, or roughly the
amount Libya produces.
A consortium of oil companies including KazMunayGas, the national oil company of
Kazakhstan; Shell of the Netherlands; Total of France; Inpex of Japan; Exxon; Conoco; and
Eni are slowly but steadily developing the oil field.
Kashagan Oilfield:
Kashagan Field is an offshore oil field in the Kazakhstans zone of the Caspian Sea. The field,
discovered in 2000, is located in the northern part of the Caspian Sea close to Atyrau and it
is considered the worlds largest discovery in the last 30 years, combined with the Tengiz
Field.
Delay in the Project:
Although it was discovered in 2000, the project was delayed due to technical problems,
disputes with the Kazakh government, and infighting among the oil companies. The project
is already five years behind schedule and has cost $41 billion.
A Challenging Project:
The Kashagan oilfield project is one of the worlds most challenging projects as the
developers have to confront harsh conditions as sea ice during the winter, temperature
variation from -35 to 40 C, extremely shallow water and high level of hydrogen sulphide.
There are environmental concerns too as the oil in the field in under high pressure which

33
increases the chances of spills.
Obama nominates person of Indian origin to key post
US President Barack Obama has nominated Indian-American Puneet Talwar as assistant
secretary of state for political military affairs.
Talwar has served Obamas top advisor on the Middle East region for over four years. He is
the second Indian-American to be nominated as the assistant secretary position in the
state department. In July, 2013,Nisha Desai Biswal was nominated as the assistant
secretary of state for South and Central Asia. Both the nominations are yet to be confirmed
by the Senate. If confirmed by the Senate, Talwar, will provide policy direction in the areas
of international security, security assistance,defence strategy and plans, military
operations, and defence trade.
ATMs, PoS machines to scan UID biometrics
The RBI is understood to be preparing a directive for banks to introduce additional facilities
in all new credit card swipe (Point of Sales, or PoS) machines and Automated Teller
Machines (ATMs) for providing a mechanism for Aadhaar authentication using biometrics.
The central bank intends to have an Aadhaar-based authentication to provide additional
security for card transactions. Although RBI seems to have accommodated to a combination
of chip and PIN authentication for existing customers and biometric checks for hitherto
unbanked cardholders, the challenge is in the acceptance devices.
Banks are of the view that the additional facilities would significantly increase investment
costs. The other challenge is that conventional phone lines may not work to transmit
scanned fingerprint images for verification. As per banks, the new machines will require the
equivalent of 3G data speeds to transmit biometric data.
UNCTAD forecasts Indias growth at 5.2% in 2013
As per the Trade and Development Report 2013 released by the United Nations Conference
on Trade and Development (UNCTAD), Indianeconomy is likely to grow at 5.2% in 2013
calendar year on account of rising domestic demand.
UNCTADs India growth prediction at 5.2% for 2013 is however lower than
the International Monetary Funds forecast of 5.6% for the same period.
For China, the report projected a moderate decline to about 7.6% in 2013 from 7.8% last
year.
Indias economic growth declined to a decades low of 5% in 2012-13 fiscal. The RBI has
projected a growth rate of 5.5% for the current fiscal.
As per UNCTAD, the global growth in 2013 is likely to marginally drop to 2.1% from 2.2% in
2011 and added that developing countries would be affected by slowdown in developed
nations.
Government sets up mechanism to prevent wastage of foodgrain
The government has set up a detailed mechanism to ensure procurement of good quality
foodgrain, its safe storage, transportation and distribution in order to prevent wastage of
foodgrain.
Some key points in the mechanism to prevent wastage of foodgrain:
The procurement of foodgrain is to be according to the uniform specifications formulated
by the government.
Procured foodgrain are to be stored in scientific storage system. During storage,

34
prescribed code of practices are to be followed to avoid any damage/wastage.
There is a regular monitoring mechanism under which inspections at all levels are carried
out to ensure safe preservations of foodgrain in Food Corporation of India (FCI) godowns.
The FCI and the state governments are to ensure that all godowns are constructed as per
specifications.
In order to check moisture from seeping into foodgrain, adequate dunnage materials such
as wooden crates, bamboo mats, polythene sheets are to be used.
Pest-control measures like providing fumigation covers, nylon ropes, nets and insecticides
will be taken in all the godowns.
IONS workshop in Mumbai to analyze security aspects in IOR
The IONS Operational Seminar and Preparatory Workshop 2013 was hosted by the
Western Naval Command at Mumbai on the theme, Roles and Expectations of
Emerging
Navies in Cooperative Engagement for Peace and Stability in IOR. The seminar was
attended by 39 delegates from 21 countries.
What is Indian Ocean Naval Symposium (IONS)?
The Indian Ocean Naval Symposium (IONS) is a maritime security construct on
similar
lines as the WPNS. Whilst the WPNS is for the region of Asia-Pacific, the IONS addresses
the Indian Ocean Region (IOR).
The IONS is a voluntary initiative that seeks to increase maritime co-operation among
navies of the littoral states of the IOR by providing an open and inclusive forum for
discussion of regionally relevant maritime issues. It endeavors to generate a flow of
information between naval professionals that would lead to common understanding and
possibly cooperative solutions on the way ahead. The inclusiveness of this forum means that
all the principal maritime agencies of states in the IOR are members, unless they desire
otherwise, thereby involving participation by almost all the littorals in the region to address
cooperative maritime issues.
Who are the members to IONS?
There are 35 members - navies of the IONS which have been geographically grouped into
the following four sub-regions:
1. South Asian Littorals: Bangladesh, India, Maldives, Pakistan,Seychelles and Sri Lanka
2. West Asian Littorals: Bahrain, Iran, Iraq, Kuwait, Oman,Qatar, Saudi Arabia, UAE
and Yemen
3. East African Littorals: Comoros, Djibouti, Egypt,
Eriteria,France, Kenya, Madagascar, Mauritius, Mozambique, Somalia,
South Africa, Sudan and Tanzania
4. South East Asian and Australian
Littorals: Australia,Indonesia, Malaysia, Myanmar, Singapore, Thailand and Timor Leste
What are the objectives of IONS?
The key objectives of the IONS are:
To promote a shared understanding of the maritime issues facing the littoral nation-states
of the Indian Ocean and the formulation of a common set of strategies designed to
enhance regional maritime security.
To strengthen the capability of all littoral nation-states of the Indian Ocean to address
present and anticipated challenges to maritime security and stability.
To establish and promote a variety of trans-national, maritime, cooperative-mechanisms

35
designed to mitigate maritime-security concerns within the Indian Ocean.
To develop interoperability in terms of doctrines, procedures, organisational and logistic
systems and operational processes, so as to promote the development of regional naval
capacities for speedy, responsive and effective Humanitarian Assistance and Disaster
Relief (HADR) throughout the Indian Ocean region.
According to Dr C Raja Mohan, recognized fellow at the Observer Research
Foundation, there are three imperatives demanding greater maritime security
cooperation in the IOR:
1. The management of the global maritime commons is becoming complex due to deepened
divisions amongst the worlds leading nations on account of changing global distribution of
power.
2. Pressures on the defence budget forcing retrenchment of armed forces thereby
constraining maritime powers from delivering public goods in the maritime domain.
3. Growing interests of the littoral states and the opportunity provided by the IONS
construct
for the region to reclaim its maritime destiny.
Indian regains WHO-SEAR directorship after 44 years
The member nations of the World Health Organizations South-East Asia
Region (SEAR) have chosen Poonam Khetarpal Singh, a former Indian IAS officer, as
the regional director of WHO (SEAR). It is after a gap of 44 years that an Indian has been
elected for the post. India had last occupied the chair from 1948 to 1968 but has not held it
since then. Singh succeeds Plianbangchang of Thailand, who has served as regional
director for 10 years now. She will serve the post for 5 years.
Which are the countries in WHO-SEAR group?
World Health Organizations South-East Asia Region (SEAR) has 11 nations. They are:
1. Bangladesh
2. Bhutan
3. Democratic Peoples Republic of Korea
4. India
5. Indonesia
6. Maldives
7. Myanmar
8. Nepal
9. Sri Lanka
10. Thailand
11. Timor-Leste
Slum Free India mission to be launched soon
The Union government has planned to start a Slum Free India mission with Rajiv Awas
Yojana(RAY). The programme will be implemented on a mission mode during 2013-22.
What is Slum Free India mission?
The Slum Free India mission will be aimed at bringing all existing slums within the
formal
system and enabling them to avail the basic amenities that are available for the rest of the
city. In the implementation phase, RAY will cover all towns, cities and urban agglomerations
in the country.
How would the selection of slums be made?

36
The selection will be made by the states in consultation with the centre giving priority to
district headquarters, cities of religious, heritage and tourist importance with due
consideration to the criterion of speed of growth of the city, slums within the city and
predominance of scheduled caste, scheduled tribe and minority population and other weaker
and vulnerable section of the society.
What would be the government funding structure of Slum Free India mission?
The Union government would fund 50%, 75% and 80% of the project cost for towns, cities
and urban agglomerations respectively with population of more than 5 lakh, less than 5 lakh
for those in northeastern region.
WHO praises Indias efforts in eliminating Polio
Indias efforts in eliminating polio have been exalted by WHO which said the country has not
reported a single case of polio in the last 30 months.
WHO Director General Margaret Chan said India accomplished the feat even as 194
countries in the world were pondering whether it can interrupt the transmission of polio. She
urged other nations in the SouthEast region to introduce universal access to healthcare.
She complimented Indias healthcare initiatives in improving the health of its mothers and
children.
She also expressed concern over the increasing incidence of heart disease which caused 9.4
million deaths every year. High blood is a main contributor to heart diseases and more
than one in three adults across the world is suffering from high blood pressure.
Thomas Bach is new President of International Olympic Committee
Thomas Bach (59) from Germany has been elected as the President of
the InternationalOlympic Committee (IOC). He is the first Olympic gold medallist to become
the President of the IOC. He will succeed Jacques Rogge, who stepped down after 12 years
in service.
Who is Thomas Bach?
Thomas Bach is a German former fencer and is the President of the International Olympic
Committee and the German Olympic Committee. He won a gold medal in the team foil event
at the 1976 Summer Olympics.
RBI asks banks to consider using business correspondents to distribute currency
In the backdrop of growing currency demands, the RBI, in a notification, asked banks to
explore the possibility of distributing banknotes and coins through business correspondents.
Earlier, RBI, in its Monetary Policy Statement 2013-14, had acknowledged the need to
identify alternative distribution possibilities to effectively meet the rising demand for
banknotes and coins.
What role the business correspondents are currently playing?
Currently, business correspondents are in the activities which include identification of
borrowers, collection and preliminary processing of loan applications, creating awareness
about savings and other products and processing and submission of applications to banks.
What did the RBI suggest banks to enhance currency distribution?
RBI has said that services of business correspondents could be used for distributing
banknotes and coins. Their services could also be used by banks for follow-up for recovery,
disbursal of small value credit and collection of small value deposits. As per the notification
by RBI, NGOs, micro-finance institutions, section 25 companies and post offices, among
others, could act as business correspondents.

37
RBI notifies norms for banks to swap overseas borrowings
The Reserve Bank of India, in a notification, said that banks can raise funds overseas above
50% of their Tier I capital with a minimum maturity of 3 years and swap these borrowings
with the RBI at a concessional rate of a 100 basis point below the market rate with a
minimum tenor for 1 to a maximum of 3 years. Bank can use this swap facility to sell
dollars in multiples of a million to RBI. At the end of the swap period, the bank would have
to buy the same amount of dollars.
As per the new norms by the RBI for banks to swap overseas borrowings:
The swaps should be available at a concessional rate of a 100 basis points below the
market rate for all fresh borrowing with a minimum tenor of 1 year and a maximum tenor
of 3 years, irrespective of whether such borrowings are in excess of 50% of their
unimpaired Tier I capital or not.
While the swaps would be for the entire tenor of the borrowing, the rate would be reset
after every 1 year from the date of the swap at 100 basis points lower than the market
rate prevailing on the date of reset.
Although the banks are permitted to borrow in any freely convertible currency, the swap
will be available only for conversion of US dollar equivalent into rupees and the American
currency equivalent would be computed at the relevant cross rate prevailing on the date
of the swap.
Banks can now borrow funds from their Head Office, overseas branches and
correspondents and overdrafts in nostro accounts up to a limit of 100% of their
unimpaired Tier I capital as at the close of the previous quarter or $10 million, whichever
is higher, as against the existing limit of 50%.
Issue of corporate guarantee on behalf of second generation or subsequent level step
down operating subsidiaries will be considered under the approval route for Overseas
Direct Investment, provided the Indian Party indirectly holds 51% or more stake in the
overseas subsidiary for which such guarantee is intended to be issued.
Russia removes ban on non-basmati rice and oilseeds imports from India
In what can be a major boost to Indian agricultural exports, Russia has removed the ban on
import of non-basmati rice and oilseeds from India.
Why Russia had earlier imposed a ban on import of Indian non-basmati rice and
oilseeds?
Russia had imposed the ban on import of Indian non-basmati rice due to the presence
of khapra beetles pest in rice and aflatoxin contamination of peanuts.
Government to evolve new index to fix rural MGNREGA wages
The government is working on a new index based on the consumption pattern of rural
landless labour to fix wages under the Mahatma Gandhi National Rural Employment
Guarantee Act.
Why the need for a new index for fixing MGNREGA wages?
Currently government uses Consumer Price Index for Agricultural Labourers (CPIAL)
with a base year of 1986-87 to calculate MGNREGA wages. The high MGNREGA wages
have been often blamed for causing a hike in farm labour wages. It has been observed that
the consumption pattern of the rural laborers have undergone a change and therefore the
base year of 1986-87 has become outdated. While the weight assigned to food items in the
CPI-AL is 69.15%, expenditure on food as a proportion of total household consumption

38
spending fell from 64% in 1987 to 48.6% in 2011-12, as per the latest household
consumption expenditure survey by NSSO. Hence, wages indexed on rural consumption
pattern may lead to lesser inflation adjustment as the food component in the basket will
decrease, which has been facing double-digit inflation for quite some time now.
What would be the effect of the use of new index for fixing MGNREGA wages?
The new index will incorporate latest rural consumption pattern. As the new consumption
pattern shows decrease in the expenditure on food as a proportion of total household
consumption, the new wages indexed on rural consumption pattern may lead to
lesser inflation adjustment as the food component in the basket will fall, which has been
witnessing double-digit inflation. It visible from the latest inflation data that food is more
volatile in terms of inflation as compared with non-food inflation.
North, South Korea to reopen Kaesong joint industrial park
Following long negotiation, North and South Korea decided to reopen their Kaesong joint
industrial park next week. The industrial complex has been shut for the last five months
during heightened military tensions between the two nations. The North accepted the
Souths demand of allowing foreign investments in Kaesong- which Seoul views as a
guarantee against the North shutting the complex down again in the future.
What is Kaesong industrial park?
Kaesong Industrial Park is a special is an economic unit in the Kaesong Industrial Region
which lies 10 kilometres over the border in North Korea. The park was being operated in
collaboration with South Korea. The idea of the park came into being through the
sunshine
reconciliation policy initiated in the late 1990s by then-South Korean president Kim Dae-
Jung as a symbol of cooperation.
What are the benefits of Kaesong Industrial Park?
The Kaesong Industrial Park will revive trade between the two adversaries and may work
towards easing tensions. On the economic front, the reopening of the park will specially
benefit North Korea as it will provide important hard currency source for the impoverished
country through taxes, other revenues, and its cut of workers wages.
In a quid pro quo, Pyongyang is likely to pressurize on Seoul to resurrect another
crossborder
project South Korean tours to the Norths Mount Kumgang resort which
could also significantly earn the country the hard currency. The tours were froze by the
South after a North Korean soldier in 2008 shot dead a female tourist from the South who
strayed into a restricted zone. In reaction to that, the North trashed a deal with the resorts
developer Seouls Hyundai Asan company and impounded its properties there.
Tamu Massif: Largest volcano on Earth discovered
Scientists have found the single largest volcano in the world called Tamu Massif- a dead
colossus deep beneath the Pacific Ocean. It is spanned across over an area of 310000 sq km
and can be compared with Mars Olymus Mons volcano, the largest in the Solar System. The
volcano was located around 2 km below the ocean. Previously, Mauna Loa in Hawaii was
considered the largest volcano on Earth.
About Tamu Massif:
It is an extinct submarine shield volcano located in the northwestern Pacific Ocean.
It is largest known volcano on Earth.
It is located in the Shatsky Rise about 1,600 km (990 mi) east of Japan.

39
Its summit lies about 1,980 m below the surface of the sea, and its base extends to a
depth of about 6.4 km.The volcano is about 4,460 metres tall.
Quadricycle to hit countrys roads from Oct 2013
The government has issued a draft notification that intends to classify the quadricycle as a
commercial vehicle under the Central Motor Vehicles Rules. It will facilitate introduction of
quadricycle to Indian roads.
What is a Quadricycle?
Quadricycle is a four-wheeled vehicle that is bigger than an auto-rickshaw but smaller than
a compact car and will be used for commercial purpose transporting passengers and goods
on non-highway stretches in cities and villages.
What does the draft notification on Quadricycle say?
As per the notification:
The use of quadricycles for transporting passengers as well as goods on non-highways will
be allowed.
The vehicle must have a fully-enclosed body with a steering wheel, and that an empty
quadricycle must not weigh more than 450 kg if used for transporting passengers and 550
kg if its is made for carrying cargo.
A passenger quadricycle will have the maximum seating capacity for 3 passengers and a
driver, while the goods variant will be allowed to carry only one passenger along with the
driver.
Materials such as rexin, cloth and plastic cannot be used to cover the sides or the top of a
quadricycle.
Maximum length of the passenger variant at 3 metre, effectively disqualifying all compact
cars from being used as quadricycles.
For a goods quadricycle, the maximum length has been set at 3.7 metre. The overall
width of these vehicles must not exceed 1.5 metre.
The vehicles will have to comply with the emission norms stipulated for auto rickshaws,
which are less rigorous than norms such as Bharat Stage III and IV that are mandatory
for passenger cars.
Why government supporting the idea of quadricycle?
As per the government, the policy on quadricycles will provide a natural upgrade to the old
three-wheeler auto rickshaws and will serve as a better form of transport with improved
stability and modern features needed for intra-city transport.
Why there is opposition to the idea of quadricycle?
Many auto manufacturers in the country including Tata Motors, TVS Motors, Maruti Suzuki
and Mahindra & Mahindra are against the idea, debating that quadricycles will take the
Indian automotive industry back by many years. Currently, Bajaj Motors is the only
automaker in Indiathat has developed a four-wheeled passenger carrier, the RE60, and
plans to launch it by the end of this fiscal.
Serena Williams wins US Open 2013
World no.1 Serena Williams conquered her fifth US Open title by defeating second
ranked Victoria Azarenka to clinch her 17th career Grand Slam crown.
Serena became the oldest Open Era womens winner in US Open history, 293 days older
than Margaret Court when she set the prior mark in 1973, and the third-oldest Grand Slam
womens champion of the Open Era.
She is the first top-seeded champion since Justine Henin in 2007 and the first woman to

40
defend the US Open crown since Kim Clijsters in 2010.
Mamnoon Hussain sworn in as Pakistan President
India-born Mamnoon Hussain sworn in as the 12th President ofPakistan. He was
administered the oath by Supreme Court Chief Justice Iftikhar Chaudhry.
Hussain, born in Agra, India, is also a textile businessman. He tenured as
the Governor of Sindh for a very short period when his appointment was dismissed by
a military coup dtat in 1999. succeeded Asif Ali Zardari.
Civil servants to get medical treatment expenses incurred abroad
As per the new norms by Ministry of Personnel, a member of All IndiaServices Indian
Administrative Service (IAS), Indian Police Service (IPS) and Indian Forest Service (IFoS)
can also be airlifted outside the state in cases of a medical emergency. An attendant of the
member of services will also be entitled for to and fro airfare.
What are the medical conditions for which a civil servant can avail treatment
abroad?
An IAS, IPS and IFoS officer may avail medical treatment outside India for himself or for a
member of his family for complex or high-risk cardio-vascular surgery, bone marrow
transplant, complex medical and oncological disorders, such as leukaemia and neo-plastic
conditions and also for complex high-risk cases in micro-vascular and neuro surgery and
extremely complex ailments. A screening committee will decide on recommending cases for
treatment abroad. Earlier, compensation of the cost of medical treatment incurred abroad by
all India services officers was not allowed.
OMCs seek compensation in case of loss through RBIs currency swap window
Oil Marketing Companies (OMCs) are not content with RBIs currency swap facility through
which it sells and buys dollars from OMCs as part of its measures to control the rupee
decline. Though the rupee has gained some stability but the OMCs are unhappy with the
hedging mechanisms as they feel that with RBIs swap window, there is uncertainty of being
compensated if they incur loss in the swap transactions.
Why OMCs are unhappy with RBIs currency swap window facility?
RBI has recently started a currency swap window to sell dollars to oil companies in exchange
for rupees on condition that they reverse the transaction at a future date. The swap window
is for fresh Foreign Currency Non-Resident (banks) (FCNRB) dollar funds, mobilised for
a minimum tenor of three years and over. This is similar to RBI lending dollars to oil
companies. Since OMCs are the biggest buyers of foreign currency which they use to buy
petroleum/oil, RBI selling dollars directly to them will keep them away from FOREX market
thereby helping the rupee to recuperate. Under the swap arrangement, the RBI will sell
dollars to OMCs on condition that OMCs will repay the same amount of dollars.
However, the OMCs are unhappy over the facility as they feel insecure about the future
adverse changes in the rates of dollar which could cause loss to them. There are
apprehensions that if something bad- US strike on Syria impacting oil supply and further
tightening of dollar (expensive dollar)- happens then there will be losses to OMCs who will
have to pay the dollars they bought under swap arrangement. Although, in such a situation,
RBI has the option to roll over the transactions until the rupee stabilizes, OMCs seek
compensation for any future losses.
Bihar, UP to be key contributor to workforce of the future: Census

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As per the Census data, Uttar Pradesh and Bihar with their highest under-14 child population
will be the major contributor to the workforce, with developed States like Kerala and Tamil
Nadu reaching or already crossed their peaks.
The census shows that Indias demography is undergoing two simultaneous and opposing
changes.
1. A decline in absolute child population under the age of 14 is being witnessed States like
Kerala, Andhra Pradesh, Maharashtra andHimachal Pradesh as was expected due to
decrease in female fertility that began in the 70s in the southern States. Although, other
States like Tamil Nadu, Gujarat and Uttarakhand have shown small rise in child
population, in the total child population falling.
2. However, the share of Bihar and Uttar Pradesh, that still have high fertility, has increased
acutely. One in every three children under the age of 14 in India comes from Bihar or
Uttar Pradesh.
As per the Census data:
U.P. with 35.69% and Bihar with 40.1% of its population under the age of 14, have
much higher figure than India as a whole which has 31% of its population under the
age of 14.
While the rest of the country has witnessed a decrease in the proportion of its population
that is under 14, for Bihar, this proportion has surged by over 10% points since 2001
which makes it the only State that has added more persons under the age of 14
than over the age of 60.
Developed States are hitting their peak working age populations, and are ageing faster
than the rest of the country.
At present, Tamil Nadu has the highest proportion of its people in the working age
population with 66.66% of three residents of the State are between the ages of 15 and
59.
India as a whole has 8.5% of its population over 60.
Tamil Nadu and Kerala have older populations; nearly 13% of Kerala is over the age of
60.
What does the data suggest towards policy formulation?
The two processes taken together indicated that todays children, who come mostly from
U.P. and Bihar, will form the workforce of the future. This is of major significance for State
and Centre policy. It means that northern States will have to spend more on
school education, while southern States can begin to focus more on quality. The other
implication is that skill development is going to be critical for Indias demographic dividend
to yield.
NASA launches LADEE probe to study lunar atmosphere
September 9th, 2013
NASA launched a robotic explorer LADEE (Lunar Atmosphere and
DustEnvironment Explorer) into space from the Mid-Atlantic Regional Spaceport in
Virginia.
About LADEE spacecraft:
LADEE is Lunar Atmosphere and Dust Environment Exploreror LADEE.
Cost: $280 million
Launching Site: Mid-Atlantic Regional Spaceport in Virginia on September 6, 2013.
Carrier: Minotaur V launched from Wallops Flight Facility
Mission: To study the lunar exosphere (outer atmosphere) and dust in the Moons
vicinity.

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Key Instruments: A dust detector, a neutral mass spectrometer, and an
ultravioletvisible
spectrometer, as well as a technology demonstration consisting of a laser
communications (lasercomm) terminal.
Special focus:
Scientists want to explore the composition of the moons very thin atmosphere and how it
might change over time. Researchers also want to solve a puzzle that whether dust actually
rises from the lunar surface. On board there is laser communication test equipment which
NASA will experiment with hopes to eventually replace its traditional radio systems with
laser communications, which would revolutionize communication with its faster bandwidth
using very less power and smaller devices.
Indian scientists detect endogenous water on the Moon
September 9th, 2013
In a latest development in the field of science, Indian scientists from theSpace
Applications Centre (SAC) of the Indian Space Research Organisation (ISRO) in
Ahmedabad have found evidence of water of volcanic origin. Unlike previous findings
indicating the presence of water-containing igneous surface, this water has originated from
deep within the Moons interior.
What are the findings by Indian Scientists?
Indian researchers have detected the endogenous water in the igneous surface on the
Moons non-polar region. So far, scientists had believed lunar rocks do not contain water and
that any water detected in lunar samples was either due to contamination from the
Earth or produced by solar wind and other exogenous extra-lunar sources. However,
after analyzing the spectral data of the Compton-Belkovich Volcanic Complex
(CBVC) region on the far side of the Moon obtained by the NASA instrument Moon
Mineralogy Mapper (M3), which was sent aboard the Indian lunar mission Chandrayaan-
1, India researchers have detected a significant concentration of the water 0.55% by
weight which is the highest ever found on the Moon. The geology of CBVC area in the
non-polar region of moon is quite different from the polar regions and has also high silica
content.
Previous findings by Indian Scientists:
The Indian findings have come after a similar work based on M3 data on the central peak of
the volcanic crater Bullialdus, reported by R. Klima and associates recently. The findings
observed that presence of water could be of magmatic or volcanic origin as the non-polar
Bullialduscrater region is an unfavourable environment for solar wind to produce significant
amounts of water on the surface. Indian researchers have reported the findings relating to
a different volcanic region which supports the previous finding.
Sebastian Vettel lifts Italian Grand Prix
September 9th, 2013
Red Bulls star driver Sebastian Vettel has won the Italian Grand Prix Championship. He left
behind Ferrari driver Fernando Alonso and Red Bull teammate Mark Webber, who finished
second and third respectively.
Sebastian Vettel:
Sebastian Vettel is a German Formula One racing driver, currently driving for
the Austrian racing team Red Bull Racing. He is the current World Champion, having won the
championship in 2010, 2011, and 2012.
Paes-Stepanek clinch US Open mens doubles title
September 9th, 2013

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The pair of Indias Leander Paes and Czechs Radek Stepanek clinched US Open mens
doubles title as they vanquished Alexander Peya and Bruno Soares in the final held in New
York. For Paes, it is his eighth mens doubles Grand Slam title.
Leander Paes won his eighth mens doubles Grand Slam title, and overall this was his 14th.
Tokyo bags 2020 Olympic hosting right
September 9th, 2013
The 2020 Olympic Games will be hosted by Tokyo as it has won the right to host the
games, beating Istanbul in the second round of voting in Buenos Aires, Argentina. This
makes Tokyo to be the first Asian city to host the Olympics twice, having also hosted the
1964 Games.
Note: Olympics 2016 will be held in Rio de Janeiro, Brazil.
RBI notifies norms for currency swap window
September 9th, 2013
RBI has notified norms for currency swap window. As per the notification, the swap facility
will be available to scheduled commercial banks for freshForeign Currency Non-Resident
Bank FCNR(B) deposits mobilized for a minimum period of 3 years. It further says that
the deposits raised may be in any permitted currency, but the swap would be available only
in dollars. Although the swap window will be operated on a daily basis on all working days in
Mumbai, a particular bank can avail of the swap facility only once in a week.
What is Currency Swap?
A currency swap is a foreign-exchange agreement between two institutions to exchange
aspects (namely the principal and/or interest payments) of a loan in one currency for
equivalent aspects of an equal in net present value loan in another currency.
Currency swaps are over-the-counter derivatives, and are closely related to interest rate
swaps. However, unlike interest rate swaps, currency swaps can involve the exchange of
the principal.
What are the main uses of Currency Swap?
Currency swaps have two main uses:
To secure cheaper debt (by borrowing at the best available rate regardless of currency
and then swapping for debt in desired currency using a back-to-back-loan).
To hedge against (reduce exposure to) exchange rate fluctuations.
India suggest to avoid any action against Syria without UN report
September 9th, 2013
India is not in support of any action against Syria without a report of the UN Inspectors on
the alleged use of chemical weapons and it asserted that no action should be taken without
UN authorization.
Prime Minister Dr. Manmohan Singh clarified Indias stance in the recently concluded G-20
Summit in St. Petersburg condemning the alleged use of chemical weapons in Syria and
anywhere else in the world. Indias view is that what happened in Syria should be
ascertained before taking any action.
Indias view were also supported by United Nations Secretary General Ban Ki moon as he
noted that the ongoing conflict in Syria must be resolved diplomatically and arms must not
be supplied to any conflicting side.
Lok Sabha passed Parliament (Prevention of Disqualification) Amendment Bill,
2013
September 9th, 2013
The Lok Sabha passed the Parliament (Prevention of Disqualification) Amendment Bill, 2013
for keeping the chairpersons of National Commissions for the SC and ST out of purview of

44
office of profit. Previously, on May 9, 2013, Union Cabinet of India gave its nod to
Amendments in the Parliament (Prevention of Disqualification) Act, 1959.
What is Parliament (Prevention of Disqualification) Act, 1959?
Section 3 of the Parliament (Prevention of Disqualification) Act, 1959, which has been
periodically amended, lists certain offices of profit under the Government of India or the
Government of any State, which do not disqualify the holders thereof for being chosen as, or
for being, a Member of Parliament. Sub-clause (ii) of clause (ba) of section 3 of the
Parliament (Prevention of Disqualification) Act, 1959, exempts the Chairperson of the
National Commission for Scheduled Castes and Scheduled Tribes from such
disqualification.
What these amendments have been made?
The National Commission for the Scheduled Castes and Scheduled Tribes was
divided into two independent Commissions i.e. (i) the National Commission for the
Scheduled Castes and (ii) the National Commission for the Scheduled Tribes by
the Constitution (89th Amendment) Act, 2003.
Through this amendment Act, Article 338 of the Constitution was amended and a new
article, namely, Article 338A was introduced in the Constitution. With the bifurcation of
the National Commission for the Scheduled Castes and Scheduled Tribes, consequential
amendments are required in sub-clause (ii) of clause (ba) of section 3 of the Parliament
(Prevention of Disqualification) Act, 1959, so as to exclude the Chairperson of the
National Commission for the Scheduled Castes and the Chairperson of the
National Commission for the Scheduled Tribes from incurring any disqualification
for being chosen as or for being a Member of Parliament.
The Constitution (89th Amendment) Act, 2003, came into force from February 19, 2004
and therefore, it is proposed to give effect to the present amendment from the same date.
Bill prohibiting Manual Scavenging passed in Lok Sabha
September 9th, 2013
The Lok Sabha passed the Prohibition of Employment as Manual Scavengers and their
Rehabilitation Bill 2012. The Bill prohibits employment of manual scavengers, manual
cleaning of sewers and septic tanks without protective equipment and construction of
insanitary latrines. It also seeks to rehabilitate manual scavengers and provide for their
alternative employment.
What are the key points in the Prohibition of Employment as Manual Scavengers
and their Rehabilitation Bill 2012 ?
According to the Bill:
The employment of manual scavengers, the manual cleaning of sewers and septic tanks
without protective equipment, and the construction of insanitary latrines is prohibited.
It provides for rehabilitation of manual scavengers and their alternative employment.
Each local authority, cantonment board and railway authority is responsible for surveying
insanitary latrines within its jurisdiction. They shall also construct a number of sanitary
community latrines.
Each occupier of insanitary latrines shall be responsible for converting or demolishing the
latrine at his own cost. If he fails to do so, the local authority shall convert the latrine and
recover the cost from him.
The implementing authorities shall be District Magistrate and the local authority.
Offences under the Bill shall be cognizable and non-bailable, and may be tried summarily.
Lok Sabha passed Street Vendors (Protection of Livelihood and Regulation of
Street Vending) Bill, 2012

45
September 9th, 2013
The Lok Sabha has passed Street Vendors (Protection of Livelihood and Regulation of
Street Vending) Bill, 2012. The bill is aimed at safeguarding rights of urban street
vendors from harassment by police, municipal authorities and providing them opportunity to
live with dignity.
What is the objective of the Street Vendors (Protection of Livelihood and
Regulation of Street Vending) Bill, 2012?
Aim: To protect the livelihood rights of street vendors as well as regulate street vending
through demarcation of vending zones, conditions for and restrictions on street vending.
As per the Bill:
Any individual who wants to undertake street vending will be required to register with
the Town Vending Committee (TVC). He may then apply for a vending certificate that
will be issued based on various criteria.
The state government shall frame a scheme for street vendors. The local authority shall,
in consultation with the planning authority, frame a street vending plan once every 5
years.
The TVC comprises of the municipal commissioner, representatives of street vendors, local
authority, planning authority, local police, resident welfare association and other traders
associations.
This Bill shall not apply to Railways land, premises and trains.
Current Affairs: Top Headlines September 6, 2013
September 6th, 2013
Iran to set free Indian tanker after 24 days of detention
Iran ordered release of an Indian tanker detained by it for the past 24 days at its Bandar
Abbas port after being seized in Persian Gulf while carrying crude from Basrah in Iraq. The
move comes after hectic negotiations between the two nations with India showing strong
objections to the detention, saying it was a colourable exercise in violation of UN
Convention on the Laws of the Sea (UNCLOS) and warning of serious consequences.
The tanker belonging to Indias largest ocean liner SCI was impounded by Iranian
Revolutionary Guards Corps (IRGC) on August 12, 2013 citing environmental and
pollution concerns.
Government will not breach 4.8% fiscal deficit: Finance Minister
Finance minister P Chidambaram on Thursday reiterated that the fiscal deficit of 4.8%
budgeted for the year 2013-14 will not be breached even as he accepted that
the economy was going through a challenging period and that continuous decline in the
rupee was a concern.
National Tobacco control program to be expanded to cover all districts
The National Tobacco control program which is currently operational in 42 districts of the
country will soon be extended to all districts of the country during the 12th plan.
The health ministry is pursuing with the finance ministry on developing a taxation policy on
all tobacco products. The government started the National Tobacco control program in 2007
during the 11th plan period . The programme has taken several initiatives to curb tobacco
use in the country. These include establishing a National Regulatory Authority, State and
district level Tobacco Control cells, Anti Tobacco Public Awareness Campaigns, establishment
of tobacco testing labs, research, training, monitoring and evaluation to check the use of
Tobacco in the country
Zubin Mehta conferred with Tagore Award for Cultural Harmony
Renowned western classical music maestro Zubin Mehta was conferred with the Tagore

46
Award for Cultural Harmony for year 2013. The award was presented by President Pranab
Mukherjee at a lively function at Rashtrapati Bhavan. Mehta is second person after late sitar
maestro Pandit Ravi Shankar to receive Tagore Award for cultural harmony.
BRICS to contribute $100 bn to Forex fund
The BRICS group of nations will commit $100 billion to a fighting fund to stabilize currency
markets destabilised by an expectations of tapering of U.S. monetary stimulus. The major
portion of the currency pool will come from China which holds worlds largest foreign
exchange reserves.
Deepak Sandhu: First woman Chief Information Commissioner of India
Deepak Sandhu, former Indian Information Service officer of 1971 batch, became the first
woman Chief Information Commissioner of the country. She was administered the oath of
office by President Pranab Mukherjee at a function in Rashtrapati Bhavan.
IOC not ready to compromise on chargesheet clause, delays Indias return to
Olympic
The International Olympic Committee (IOC) has clarified that theIndian Olympic
Association (IOA) has to adopt the chargesheet clause in its constitution which bars
charge-sheeted persons from contesting elections for key posts of the sports body. The
stand taken by IOC has further delayed Indias return to Olympic group. IOA had proposed a
compromise formula according to which the sanction will apply only to those officials who
are convicted and sentenced to a jail term of more than two years.
Crisis risks are high in Pakistan: IMF
IMF suggested Pakistan to bring in comprehensive economic reforms to tackle the serious
economic challenges its faces amid subpar growth and unsustainable fiscal and balance of
payments positions. The International Monetary Fund suggested it after approving financial
assistance of $6.7 billion to Pakistan to save it from economic crisis.
Banks agree to be lenient towards mining dependent loan defaulters
In a meeting of RBI and other banks in Goa, banks agreed to be soft towards mining
dependent loan defaulters. They resolved not to be harsh on the defaulters till March next
year. Banks took into account the fact that mining business in the state is in a state of
impasse. As per government data, the loan liability of people dependent on mining activity
is around Rs 1,734 crore, of which Rs 570 crore is NPAs through various banks, including
cooperative and urban banks. The state government has also decided to exempt road tax for
mining related trucks.
Sub-debt ratings of 11 Indian banks downgraded by Moodys
The subordinated debt ratings of 11 Indian banks including SBI, ICICI Bank and HDFC
Bank have been downgraded by Moodys Investors Service. The other banks affected
are Axis Bank, Bank of Baroda, Bank of India, Canara Bank, IDBI Bank, Indian Overseas
Bank, Syndicate Bank andUnion Bank of India. The downgrade has been keeping in mind the
increasing international trend of imposing losses on holders of subdebt securities as a
precondition
for distressed banks to receive government support. As a result, Moodys assumes
that Indian government support is less likely to be approaching for the holders of such
securities.
KitKat: New version of Android software
September 6th, 2013
Google, on its 15th birthday, revealed that the next version of Android will be
called KitKat continuing its predilection for naming its software after famous
delicacies. Over the years, Google launched several versions of Android naming each of

47
them after a dessert.
The other versions of Android mobile-operating system are:
Cupcake
Donut
Froyo
clair
Gingerbread
Honeycomb
Ice Cream Sandwich
Jelly Bean
Android software powers more than a billion smartphones or tablets worldwide,
according to Google. Androids share of the smartphone market expanded to 79.3% in the
second quarter while that of iPhone fell to 13.2% period.
Which are the main mobile Operating Systems?
As of 2011, the top mobile operating systems marketed as smartphones by market share
were Android, Symbian, Apple iOS, BlackBerry, MeeGo, Windows Phone and Bada.
Mobile Os and its owner Company
Android: Google Inc.
Symbian OS: Nokia and Accenture.
Bada: Samsung Electronics.
BlackBerry Tablet OS: QNX Software System/BlackBerry
Windows Phone: Microsoft
GridOS: Fusion Garage
S40 (Series40): Nokia
webOS: LG
Asha: Nokia
Maemo: Nokia
RBI allows companies to use ECB for general corporate purposes
September 5th, 2013
In a bid to attract capital flows, the RBI relaxed the External Commercial Borrowing
(ECB) norms by permitting companies to use funds raised from their foreign equity holder
company with minimum average maturity of 7 years for general corporate purposes. Till
now borrowings in the form of ECB were not allowed to be used for general
corporate purpose.
Nevertheless, the RBI has put certain conditions. As per the conditions, the minimum paidup
equity of 25% should be held directly by the lender (overseas partner) and the
repayment of the principal will commence only after completion of minimum average
maturity of seven years and no prepayment will be allowed before maturity.
What is External Commercial Borrowing (ECB)?
Any money that has been borrowed from foreign sources for financing the commercial
activities in India are called External Commercial Borrowings.
The Government of India permits ECBs as a source of finance for Indian Corporates for
expansion of existing capacity as well as for fresh investment.
The ECBs are defined as money borrowed from foreign resources including the
following:
Commercial bank loans
Buyers credit and suppliers credit
Securitised instruments such as Floating Rate Notes and Fixed Rate Bonds etc.

48
Credit from official export credit agencies and commercial borrowings from the private
sector window of Multilateral Financial Institutions such as International Finance
Corporation (Washington), ADB, AFIC, CDC, etc.
Objective of External Commercial Borrowing (ECB):
Government permits the ECBs as an additional source of financing for expanding the
existing capacity as well as for fresh investments. The ECB policy of the Government
seeks to emphasize the priority of investing in the infrastructure and core sectors such as
Power, telecom, Railways, Roads, Urban infrastructure etc.
There is also emphasis on the need of capital for Small and Medium scale enterprises.
How ECB is different from FDI?
It must be noted that ECB means any kind of funding other than Equity. If the foreign
money is used to finance the Equity Capital, it would be termed as Foreign Direct
Investment.
The ECB should satisfy the ECB regulations stipulated by the Government or its agencies
such as RBI. The Bonds, Credit notes, Asset Backed Securities, Mortgage Backed
Securities or anything of that nature are included in ECB.
The following are not included in the ECBs
Any Investment made towards core capital of an organization such as equity shares,
convertible preference shares or convertible debentures. We should note here that those
instruments which can be converted into equity are called convertible. The convertible
instruments are covered under the FDI Policy.
Any other direct capital is not allowed in ECB.
Lok Sabha passes PFRDA Bill 2011
September 5th, 2013
The Pension Fund Regulatory and Development Authority Bill (PFRDA), 2011 which
aims to regulate the New Pension System (NPS)has been passed in the Lok Sabha with
official amendments. The bill was introduced in the lower house in March 2011 to provide for
a statutory regulatory body. Currently the PFRDA has a non-statutory status. The legislation
seeks to empower PFRDA to regulate the New Pension System (NPS).
Some highlights of PFRDA Bill 2011:
It provides subscribers a wide choice to invest their funds for assured returns by opting
for
government bonds as well as in other funds depending on their capacity for risk.
It allows for withdrawals from the individual pension account subject to the conditions,
such as, purpose, frequency and limits, as may be specified by the regulations.
It makes the Pension Fund Regulatory and Development Authority a statutory authority.
Presently, it has non-statutory status.
What is the main reason behind providing PFRDA a statutory status?
NPS which is compulsory for government employees (exceptdefence) has been
launched for all citizens of the country including un-orgnised sector workers, on voluntary
basis, with effect from May 1, 2009. Further, the Government has launched the
cocontributory
pension scheme titled Swavalamban Scheme in the Budget of 2010-11.
Currently, the number of subscribers under NPS is 52.83 Lakh with a corpus of Rs. 34, 965
crore. In order to effectively invest and manage huge funds belonging to a large number of
subscribers and to ensure the integrity of NPS, establishment of a statutory PFRDA with well
defined powers, duties and responsibilities is considered absolutely necessary and would
benefit all NPS subscribers.

49
Ministry of MSME sets up District-level Advisory Committee to monitor PMEGP
September 5th, 2013
The Ministry of Micro, Small and Medium Enterprises (MSME) has established an
Advisory Committee for each district of the country for monitoring the progress of Prime
Ministers Employment Generation Programme (PMEGP) with active role of Members
of Parliament from the district.
What is Prime Ministers Employment Generation Programme (PMEGP)?
Prime Ministers Employment Generation Programme (PMEGP) is a credit linked
subsidy programme launched by the Government of India by merging the two schemes
namely Prime Ministers Rojgar Yojana (PMRY) and Rural Employment Generation
Programme (REGP) for generation of employment opportunities through establishment of
micro enterprises in rural as well as urban areas. PMEGP is a central sector scheme
administered by the Ministry of Micro, Small and Medium Enterprises (MoMSME).
What are the objectives of PMEGP?
Objectives of PMEGP are:
1. To generate employment opportunities in rural as well as urban areas of the country
through setting up of new self employment ventures/projects/micro enterprises.
2. To bring together widely dispersed traditional artisans/ rural and urban unemployed youth
and give them self employment opportunities to the extent possible, at their place.
3. To provide continuous and sustainable employment to a large segment of traditional and
prospective artisans and rural and urban unemployed youth in the country, so as to help
arrest migration of rural youth to urban areas.
4. To increase the wage earning capacity of artisans and contribute to increase in the growth
rate of rural and urban employment.
What will be the constitution of the District Level Advisory Committee who will
monitor PMEGP?
The District Level Advisory Committee will comprise around 30 members chaired by the
Member of Parliament (Lok Sabha) elected from the District having the largest part of the
district under his/ her Parliamentary constituency. The Committee would provide overall
guidance and suggestions for the implementation of the PMEGP programme. The committee
would liaise and coordinate with Khadi and Village Industry Commission (KVIC) which
is the nodal agency for the scheme, State Government and other agencies including
Banks for effective mobilization of young entrepreneurs under PMEGP. It would also ensure
that the scheme is implemented in line with its guidelines.
Other member of the Committee:
Members of Parliament of Lok Sabha having part constituency in the district would be
cochairperson
and Member of Parliament of Rajya Sabha will be a member.
Members of State Legislative Assembly and Legislative Council, Chairperson of Zilla
Panchayat, representatives of SC/ST, OBC, minority and women and one professional
from social work/ social science, representatives of bank and financial institutions.
District Magistrate/ Collector will be its member-convener.
MoE slaps Rs 200 crore penalty on Adani group
September 5th, 2013
A committee, established by the Ministry of Environment and Forests, under the
chairmanship of Sunita Narain, director general of Centre for Science and Environment,
has slapped a penalty of Rs 200 crore on the Adani Groups Mundra Port and Special
Economic Zone for inflicting harm to mangroves, creeks and the local environment at the

50
project site. In addition to the fine, a part of the project could face suspension after a more
detailed probe into the alleged violation of environmental clearance norms. The money from
the fine will go into an environment restoration fund for the area.
Why did the environment ministry impose fine on Adani Group?
As per the report submitted by Sunita Narain panel, it was found the Adani Group infringed
environmental norms in the countrys largest private port in Mundra and special trade zone
that it operates in the Kutch district in Gujarat. The penalty has been slapped fordamaging
mangroves, creeks and the local environment at the project site. During its
investigation the panel found widespread destruction of mangroves-75 hectares of
mangroves have been lost in Bocha Island, which was declared as a conservation zone
under the environmental clearance conditions.
The panel stated in its report that the company has not taken precautions to guard against
blocking of creeks because of construction activities; satellite imagery shows signs of
deterioration and loss of creeks close to the proposed North Port.
Gareth Bale signs 100 million euros contract with Real Madrid
September 5th, 2013
Footballer Gareth Bale signed a six-year contract with Real Madrid on a humongous fee
of 100 million euros ($132 million) which is a new world record making it a biggest
transfer of a football player in the world. Previously, the record was with Cristiano
Ronaldo when Madrid paid 93 million euros to Manchester United for his transfer in 2009.
Who is Gareth Bale?
Gareth Frank Bale is a Welsh footballer who plays for Spanish La Liga club Real Madrid and
the Wales national team as a winger. Bale is described by his admirers as a footballer with
tremendous speed, great crossing ability, a great left foot and exceptional physical
qualities.Bale was awarded PFA Young Player of the Year, the PFA Players Player of
the Year and the FWA Footballer of the Year awards during the season 201213.
Rajya Sabha passes National Food Security Bill 2013
September 5th, 2013
The National Food Security Bill 2013 has been passed in the Rajya Sabha.
What are the key features of the National Food Security Bill 2013?
Entitles 5 kg of rice, wheat and coarse cereals per month per person at 3, 2 and 1 Rupees
respectively to around 67% of nations population.
With this Bill, India will join the select club of nations which guarantee food-grains to
majority of its population.
It will be the largest programme of its kind in the world which will cost government Rs.
130,000 crore.
To implement the bill a total of 62 million tonnes of food-grains will be required.
It is being viewed as the first step towards universalization of Public Distribution System.
The Bill proposes to provide free meals to all the pregnant women as well as lactating
mothers during the pregnancy till six months post delivery.
Maternity benefit of Rs. 6000 will also be given to pregnant women.
Children till the age of 14 years will also be given free meals.
The state will pay the food security allowance to the beneficiaries in the event of
nonsupply
of the foodgrains.
The scheme will be linked to the Aadhar number thats linked to a database that includes
the biometric information of all card-holders.
NSA snooped on Brazilian Presidents phones and email content

51
September 5th, 2013
The secret documents disclosed by the NSA whistle-blower Edward Snowden in June have
revealed that NSA spied on the content of telephone calls, emails and cellphone messages of
Brazilian President Dilma Rousseff and her key aides. The secret document mentions
bothBrazil and Mexico placing them in a group of nations that are being closely monitored as
a challenge by the U.S. Headlined Friends, Enemies, or Problems? The list starts with
Brazil and Egypt. It showsIndia at number 3 and concludes with Turkey and Mexico. The
document dismantles the NSAs operation whose goal was to improve understanding of
the
methods of communication and the interlocutors of the President of Brazil, Dilma Rousseff,
and her top aides.
What may be the impact of these revelations?
The relations between the US and Brazil have already been under stress since it came into
light in July that the Americans were conducting electronic surveillance for collecting huge
amount of phone and Internet data from the countrys networks. The latest revelation may
further harm the ties.
RBI asks banks to consider e-KYC a valid process
September 5th, 2013
In a notification issued by the Reserve Bank of India, banks have been asked to avail the
electronic Know Your Customer, e-KYC service, launched by the Unique Identification
Authority of India, UIDAI. The notification directed banks to revise their KYC policy by
accepting the e-KYC as a valid process for KYC verification under the Prevention ofMoney
Laundering (Maintenance of Records) Rules, 2005. As per the notification, the
information containing demographic details and photographs made available from UIDAI as
a result of e-KYC process may be treated as an Officially Valid Document under PML
Rules.
What is e-KYC?
The e-KYC service was launched by the UIDAI to help people link their existing records,
like ration cards, pension accounts, license and certificates, to their Aadhaar numbers in a
safe and easy manner.
Union Cabinet gives nod to set up National Institute of Solar Energy
September 5th, 2013
The Union Cabinet approved the proposal for setting up of an autonomous National
Institute of Solar Energy (NISE) to function as apex national body for research and
technology development and related activities in the area of solar energy technologies in the
country. The institute is to be set up by converting the Solar Energy Centre (SEC), Gurgaon
with a long term vision to develop it as a world class institute.
The setting up of National Institute of Solar Energy is a part ofJawaharlal Nehru National
Solar Mission (JNNSM) which will speed up the process to support induction of the latest
technologies to ensure maximum cost benefit and lead to early commercialization. Solar
power project developers will be motivated to use more efficient and optimized solar
components.
IAF inducts C-17 Globemaster III heavy-lift transport aircraft
September 5th, 2013
The Indian Air Force inducted three Boeing C-17 Globemaster III,heavy-lift transport
aircraft into the newly-formed 81 Skylord Squadron at the Hindan Air Base, Delhi.
About C-17 Globemaster III
It has the potential to carry 75 tonnes of load which is almost double the capacity of

52
Russian IL-76 in the IAF inventory which can carry only around 40 tonnes.
It will boost up IAFs flexibility in terms of operational response and with the heavy lift
capability it could easily move troops and heavy tanks to required locations.
Indian Railways developing CReDI system to save fuel and cut emissions
September 4th, 2013
The research wing of Indian Railways, Research Development Standard Organisation
(RDSO) is in the process of developing a highly fuel efficient, Common Rail Electronic
Direct Fuel Injection (CReDI)system for its fleet of diesel locomotives. Indian
Railways has taken a global lead in initiating development of the CReDI for its fleet of diesel
locomotives. In this direction, an Indian manufacturer has set up a joint venture with a
reputed firm from Switzerland for design and development of the system under overall
supervision of RDSO.
What is CReDI?
Common rail direct fuel injection is a modern variant of direct fuel injection system
for petrol and diesel engines. Indian railway is working on diesel engines. In the common
rail systems, fuel at a high pressure (1600 bars) is injected into the cylinder by using a
magnetic valve. It is possible to have multiple injections in the cylinder thereby reducing
stress on the cylinder parts and reduce fuel consumption and emissions at the same time.
Common Rail technology has been heralded as break-through invention for diesel engines
across the globe.
How would CReDI help?
The Common Rail Electronic Direct Fuel Injection (CReDI) system would enable fuel
savings in the range of 3 to 4% and emissions reductions by about 20-30% are expected.
Once the systems are implemented on the complete fleet of locomotives, savings will be
about Rs. 500-600 crore annually.
Research Development Standard Organisation (RDSO):
RDSO is the research wing of Indian Railways.Railway
Testing and Research Centre (RTRC) was setup in 1952 at Lucknow owing to a phenomenal
increase in countrys industrial and economic activity and a subsequent increase in the
demand for rail transportation.
Current Affairs: Top Headlines for September 4, 2013
September 4th, 2013
Raghuram Rajan becomes 23rd RBI Governor
Noted economist Raghuram Rajan became the new RBI Governor as he took charge from
the outgoing Governor D Subbarao. Rajan has been an Economics Professor and has also
served as chief economist at theInternational Monetary Fund. Rajan, who is known for
having forecasted 2008 global financial crisis has taken charge of the vital position at time
when rupee has declined nearly 20% against dollar and the problem of widening current
account deficit and declining forex reserve has become serious.
Union Cabinet gives nod to set up National Institute of Solar Energy
The Union Cabinet approved the proposal for setting up of an autonomous National
Institute of Solar Energy (NISE) to function as apex national body for research and
technology development and related activities in the area of solar energy technologies in the
country. The institute is to be set up by converting the Solar Energy Centre (SEC), Gurgaon
with a long term vision to develop it as a world class institute.
Housing loans should be linked to stages of construction: RBI
The Reserve Bank of India has stated that housing loans from banks to individuals should be
linked to the stages of construction. It said such loan products, popularly called 80:20 or

53
75:25 schemes, are likely to make the banks as well as their home loan borrowers
susceptible to additional risks. It added that upfront disbursals of lump sum loans should not
be made in case of incomplete or under-construction housing projects.
SJAM to honor Tedulkar with Century of Centuries award
Sports Journalists Association of Mumbai (SJAM) has selected famous batsman Sachin
Tendulkar for a special Century of Centuries Award. The Little Master has been chose for
the award for scoring 100 international hundreds.
Malala inaugurates new Birmingham Library
Famous brave schoolgirl and education activist Malala Yousufzai was the chief guest at the
opening ceremony of the new Birmingham Library which will now be the largest in Europe.
On this occasion she delivered a moving speech in which she called for peace and advocated
free education for children around the world.
Hyundai unveils new compact car Grand i10
With hopes to further strengthen its business in Indian car market, Hyundai Motor
India (HMIL) unveiled its new compact car Grand i10priced between Rs 4.29 lakh and Rs
6.41 lakh. The car has been launched in two engine variants 1.1 litre diesel and 1.2 litre
petrol. While the diesel version is priced between Rs 5.23 lakh and Rs 6.41 lakh, the petrol
variant is priced from Rs 4.29 lakh to Rs 5.47 lakh.
Verizon Communications to acquire Vodafones 45% in JV for $130 billion
Verizon Communications has decided to acquire Vodafone Groups 45% stake in Verizon
Wireless for $130 billion. The deal will be the third biggest acquisition in corporate history,
after Vodafones 1999 takeover of Germanys Mannesmann for $203 billion and AOLs $165
billion buyout of Time Warner in 2000. It also marks British telecom heavyweight Vodafones
exit from the US mobile market.
Indian engineering grad wins $ 12,500 bounty from Facebook for detecting critical
bug
Social networking website Facebook will pay Arul Kumar (21), an Indian engineering
graduate, a bounty of $12,500 for detecting a critical bug that allowed anyone to delete any
photo hosted on the social networking website. Earlier his claim of finding such a bug was
rejected by the Facebook but later when he sent a video to the website explaining how it
could be done, they agreed to pay the bounty. Facebook runs a programme which rewards
people who find flaws on the website.
Microsoft to buy Nokia for $7.2 billion
Software behemoth Microsoft Corp will buy Nokias business and its patents for 5.44 billion
euros with the aim to enter into mobile market. The deal will include Nokias mobile phones
and smart devices business units as well as operations including all Nokia devices and
services related production facilities, sales and marketing activities and related support
functions.
Birth certificate, Passport or Aadhaar card alone no proof of citizenship: Bombay
HC
The Bombay high court, in a judgement, held that if an individual was born after July 1,
1987 then merely having a birth certificate, passport or even an Aadhaar card is not enough
to prove that he/she is an Indian citizen. As per Indian Citizenship laws, a person born in
India after July 1, 1987 cannot claim automatic citizenship unless at least one of the parents
is an Indian.
September 3rd, 2013
Moortidevi award to Haraprasad Das

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Noted poet, Haraprasad Das has been honored with the Moortidevi Award for 2012
for Vamsha, a poetic recreation of the Mahabharata in contemporary dialect, which has
been heralded as a post-modern masterwork.
Food Security Bill passed in Rajya Sabha
The Rajya Sabha passed the ambitious Food Security Bill which aims to provide foodgrains
at highly subsidized prices to the 2/3rd of countrys population. The bill will guarantee 5 kg of
rice, wheat and coarse cereals per month per person at Rs 3, 2, 1, respectively. The
programme would cost government Rs 1,30,000 crore government which will be the largest
such programme in the world. It would require 62 million tonnes of foodgrains.
Washington moves USS Nimitz towards Red Sea
In what could be seen as a surge in tension in the West Asia region, the Washington has
moved the aircraft carrier USS Nimitz towards the Red Sea, though the warship had not yet
received orders to support a strike on Syria. US President Obama and his team are lobbying
hard to seek US Congress approval for a military strike against the Syrian regime over the
use of chemical weapons in the country. Russia has warned that any US military aggression
in Syria would derail the Geneva peace plan and has suggested US Congress to take a
balanced view of the situation in Syria.
IAF inducts C-17 Globemaster III heavy-lift transport aircraft
The Indian Air Force inducted three Boeing C-17 Globemaster III,heavy-lift transport
aircraft into the newly-formed 81 Skylord Squadron at the Hindan Air Base, Delhi. C-17
has the potential to carry 75 tonnes of load which is almost double the capacity of Russian
IL-76 in the IAF inventory which can carry only around 40 tonnes. It will boost up IAFs
flexibility in terms of operational response and with the heavy lift capability it could easily
move troops and heavy tanks to required locations.
PM unveils Gandhi Heritage Portal
Prime Minister Dr. Mamohan Singh launched the Gandhi Heritage Portal. The portal has been
designed to review the message of non-violence to the world as well as to the Indian youth,
besides highlighting significant aspects of the freedom struggle and Gandhijis message and
humanism. The portal is conceived around The Collected Works of Mahatma Gandhi. It
makes available the critical works in three languages: English (100 volumes), Hindi (97
volumes) and Gujarati (82 volumes). These volumes are interlinked to provide easy
navigation from one text and language to the other.
India, Japan to restart talks on civil nuclear agreement
After a hiatus of nearly 3 years, India and Japan will resume talks on the civil nuclear pact in
Tokyo today. The nuclear-energy negotiations were initiated in 2010 but have been on hold
since the Fukushima nuclear disaster March 2011. This will be the fourth round of talks
which comes following a meeting between Prime Minister Manmohan Singh and his
Japanese counterpart Shinzo Abe in Tokyo in May, 2013 when they resolved to direct to
expedite the negotiations of an Agreement for Co-operation in the Peaceful Uses of Nuclear
Energy towards an early conclusion.
Himachal Pradesh imposes ban on sand transport to other states to curb illegal
mining
In a bid to check illegal mining of sand the Himachal Pradesh government has decided to
take stringent measures and impose a temporary blanket ban on the transportation of
construction material like sand and grit to other states for 3 months. The government has
also decided to create a task force in each district to check not only the illegal mining but
also to suggest ways to curb these actives in future.
RBI asks banks to consider e-KYC a valid process

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In a notification issued by the Reserve Bank of India, banks have been asked to avail the
electronic Know Your Customer, e-KYC service, launched by the Unique Identification
Authority of India, UIDAI. The notification directed banks to revise their KYC policy by
accepting the e-KYC as a valid process for KYC verification under the Prevention ofMoney
Laundering (Maintenance of Records) Rules, 2005. As per the notification, the information
containing demographic details and photographs made available from UIDAI as a result of e-
KYC process may be treated as an Officially Valid Document under PML Rules.
The e-KYC service was launched by the UIDAI to help people link their existing records, like
ration cards, pension accounts, license and certificates, to their Aadhaar numbers in a safe
and easy manner.
Process of opening bank accounts for foreign students simplified: RBI
Simplifying bank account opening procedure for foreign students, RBI issued a notification
asking banks to open a Non-Resident Ordinary bank account of a foreign student on the
basis of his/her passport along with appropriate visa and immigration endorsement. As per
the notification foreign students who intend to open a bank account will have to submit a
valid address proof giving local address, in the form of a rent agreement or a letter from the
educational institution in case of hostel facility within 30 days of opening the account.
Banks have been asked not to insist on the landlord visiting the branch for verification of
rent documents and to take up alternative means of verification of local address.
Diana Nyad becomes first person to swim from Cuba to US without shark cage
American long-distance swimmer Diana Nyad (64) became the first person to swim across
166-km long Florida Strait from Cuba to the United States without a shark cage. It took
her about 53 hours after beginning from Havana. It was her 5th attempt when set a record
for the longest ocean swim without a shark cage or flippers.
September 2nd, 2013
Hyderabad Hotshots clinch IBL
Hyderabad Hotshots defeated Awadhe Warriors in the final of the $1 million
inaugural Vodafone-Indian Badminton League (IBL) played in Mumbai. The event witnessed
six teams namely Banga Beats, Hyderabad Hotshots, Delhi Smashers, Mumbai Masters,
Pune Pistons and Awadhe Warriors competing against each other to reach the top spot.
To save forex India plans crude import from Iran
To tackle widening Current account Deficit (CAD) and continuous depreciation of
rupee India plans to exercise the option of importing crude oil from Iran. The move would
Indias save $8.5 billion in foreign exchange as pays Tehran in rupee unlike other oil
exporting countries. India spent $144.29 billion for oil imports in the last fiscal.
Korea beat India to conquer Asia Cup
India lost to Korea in the final of Asia Cup hockey tournament. Korea won the match 4-3
which brought them fourth triumph in the competition.
Final Positions of Teams: 1. Korea, 2. India, 3. Pakistan, 4.Malaysia, 5. Japan, 6.
Oman, 7.Bangladesh, 8. Chinese Taipei.
Player of the tournament: V.R. Raghunath (India)
Lungs of Indians functions 30% lower than Europeans: Study
It has been found in a study that Indians have 30% lower lung function as compared to
Europeans. The study conducted the Peak Expiratory Flow Rate (PEFR) measurement of
10,000 healthy, non-smoking individuals in Jaipur, Pune, Hyderabad, Kolkata and Kashmir
and found that lung function in Indians was 30% lower than Europeans. PEFR is the rate at
which a person exhales and it is measured to assess lung function. This puts Indians at

56
more risk from air pollution and smoking.
Indian capital markets witness $2.5 billion FIIs pull out
Foreign investors pulled out nearly Rs 16,000 crore (around $2.5 billion) from the Indian
capital markets in August 2013 amid fears over the falling rupee. As per experts, although
there has been a continous pull out of FIIs from Indian market due to Indias economic
challenges, depreciating rupee and volatile global markets, the outflows have slowed. The
volume of outflows marked the lowest net outflows from the Indian capital markets since
June, when FIIs had pulled out a record Rs 44,162 crore ($7.5 billion).
ICC T20 rankings: India No. 3, Sri Lanka tops list
With 121 rating, India have retained their rank three position among T20 teams. Sri
Lanka tops the chart which is followed by Pakistan. The Indian batsmen listed in top-20 list
also managed to retain their respective spots with star batsman Kohli at 6th place while
Suresh Raina remained at 8th position.
Food Security programme begins in Delhi
Food Security programme has been started in National capital Delhi. The programme which
involves distribution of foodgrains under the highly subsidized prices has begun at four
places in the national capital. Under the programme, identified beneficiaries will be entitled
to food grains at Rs 3 per kg for rice, Rs 2 per kg for wheat and Rs 1 per kg for coarse
cereals. Delhi government has so far identified 35 lakh beneficiaries and is likely to expand it
further to 73 lakh people by January 2014.
Arab League calls for deterrent measures against Syria
The Arab League has exhorted the United Nations and the global community to take
deterrent and necessary action against the Syrian government under Bashar al Assad for the
use of chemical weapons while oppression of the rebellion there. However, Sunni Islams
highest seat of learning, Cairo s Al Azhar has expressed opposition to any US military
intervention on Syria, saying this would lead to an aggression against the Arab and Islamic
nation.
Health Ministry launches health schemes in Assam
Ministry of Health and Family Welfare launched in Assam various new health scheme mainly
focused on improving the maternal and infant mortality rates in the state. Among the
scheme launched were Mother and Child Tracking System (MCTS), Rashtriya Bal Swasthya
Karyakram (RBSK), national Iron Plus initiative, National Health Missions Free Drug Service,
tele-radiology service and hospital-to-hospital 102 ambulance services.
Factory activity of India contracts for first time since March 2009
It is for the first time in the last 4 years that Indian factory activity has registered a shrink
aggravating the concerns for the countrys deepening economic woes even as the
Reserve Bank of India (RBI) battles to defend the rupee currency. It came into notice from
the Purchasing Managers Index (PMI) data that showed Indian economy grew at its
slowest quarterly rate in the three months to June since the global financial crisis.
Land Acquisition Bill passed in Lok Sabha
September 1st, 2013
The Lok Sabha passed the long-awaited Land Acquisition, Rehabilitation and Resettlement
Bill which seeks to replace the archaic land acquisition law dating back to 1894. The
government cleared the air on the reservations from some States against some provisions in
the bill by informing that the Bill only ideates for fair compensation, rehabilitation and
resettlement in the case of land acquisition and State Governments were free to improve
upon it and enforce it as per their specific needs.
What are the key features of Land Acquisition, Rehabilitation and Resettlement Bill

57
2012?
A key provision of the Land Bill is to get the consent of 80% of the landowners in case the
land is acquired for private purposes and in case the land is acquired for public projects then
at least consent of 70% of the landowners will be mandatory. The Bill also proposes that
the farmers and the landowners should be compensated up to 4 times the market value of
land in rural areas and two times the market value in urban areas.
Moodys thumbs down to Food Security Bill
September 1st, 2013
Rating agency Moodys has given a thumbs down to the Food Security Bill saying the
measure is credit negative as it would wane government finances and make an bad impact
on the macroeconomic situation.
Why did Moodys weigh the Food Bill as credit negative?
The Food Security Bill which entitles 2/3rd of Indias population to food grain at subsidized
prices, will soar government spending on food subsidies to about 1.2% of GDP per year from
an estimated 0.8% currently, aggravating the governments weak finances. The
implementation of the bill will cost the government about Rs.1.30 lakh crore at current cost.
What is Indias current rating according to Moodys?
Currently, according to Moodys Indias rating is Baa3 with a stable outlook. It shows
medium grade with moderate credit risk.
CCEA gives nod to TUFS for 12th Plan
September 1st, 2013
The Cabinet Committee on Economic Affairs (CCEA) gave nod for the implementation and
continuation of Technology Upgradation Fund Scheme (TUFS) during the 12th Plan
period with a focus on powerlooms with a total outlay of Rs.11,900 crore.
What is the aim of TUFS (Technology Upgradation Fund Scheme)?
The aim of TUFS is to encourage and promote indigenous manufacturing of textile
machinery.
The scheme will provide for Interest Reimbursement (IR) on second hand imported
shuttleless looms to be slashed from 5% to 2%. Besides, for new shuttleless looms, capital
subsidy would be increased from 10% to 15%, IR from 5% to 6%, and margin money
subsidy has been enhanced from 20% to 30% with an increase in subsidy cap from Rs. 1
crore to Rs. 1.5 crore. The capital subsidy for handloom and silk sectors would be increased
from 25% to 30%. Margin money subsidy limit would be increased from Rs.45 lakh to Rs.
75 lakh in respect of MSME and jute sectors.
September 1st, 2013
Curiosity to take pictures of solar eclipse
Mars rover Curiosity took pictures of the planets moon, Phobos, eclipsing the sun. NASAs
Curiosity rover landed on the red planet in August 2012 for a 2-year mission to study if the
planet similar to Earth in the solar system ever had the chemical ingredients for supporting
life.
RBI forbids overseas buying, plus point for Indian realty
In a bid to curb the outflow of capital from the country, the RBI has cut down the annual cap
on automatic outflows from $2,00,000 to $75,000 per individual. In addition to this, the
central bank has also imposed a ban on overseas real estate purchases with immediate
effect. The move expected to benefit the domestic real estate as the capital which otherwise
would have been diverted overseas will now remain in the country.
Indias foreign exchange reserves deplete by $1.08 billion

58
As per RBIs data, Indias foreign exchange (forex) reserves reduced by $1.08 billion to
$277.72 billion for the week ended Aug 23, 2013. The Special Drawing Rights (SDRs)
decreased by $4.5 million to $4.38 billion for the same period. Gold reserves remained at
the same level at $20.74 billion.
Decline in Rupee may not impact agriculture sector: NABARD
According to National Bank for Agriculture and Rural Development (Nabard) head Prakash
Bakshi the continuing depreciation of rupee against the dollar is unlikely to make any
negative impact on the agriculture sector. In the event rupee decline impacts the prices of
fertilizers or diesel it would be compensated either by the way of subsidy or by hiking the
minimum support price.
Delhis tops in per capita income in India
As per Delhi Development Report 2013, Delhis average per capita income stands at more
than Rs 2 lakh per year in 2012-13 which makes it the highest in India. It is around 3 times
more than the national average per capita income.
India approaching IMF for foreign exchange not imminent: Planning Commission
Planning commission deputy chairman Montek Singh Ahluwalia has assured that India has
adequate forex reserves to manage the current situation and ruled out
approaching the International Monetary Fund(IMF) for help, saying the economic
situation has not reached a point where outside aid is warranted. Indias foreign exchange
reserves were up at 278.602 billion $ as of August 9, 2013.
Pakistan unable to qualify for the Hockey World Cup for the first time
Pakistan is aggrieved as the country lost berth for the Hockey World Cup 2014 tournament.
It is for the first time in Pakistans sporting history that it has been unable to qualify for the
World Cup Hockey tournament as it lost to South Korea in the semifinal of the Asia Cup
being held inMalaysia, a match they needed to win to qualify.
Pakistan not considering granting MFN status to India
Pakistans Finance Minister has communicated that, at present, it is not in talks to grant
of Most Favoured Nation (MFN) status to India. The remarks came within days of World
Bank suggesting in a report that Pakistan will benefit from granting the MFN status to India.
Pakistan already enjoys the MFN status which India extended to it in 1996. The bilateral
trade between the countries was at $2.35 billion in 2012-13, as against $1.93 billion in fiscal
2011-12.
RBI not considering to convert idle gold into bullion
Responding to the reports that Reserve Bank of India (RBI) is mulling over multiple
measures, including using thousands of tone of idle gold jewellery in temples, to replace for
import, the central bank said it did not have any proposal to convert idle gold from temples
and individual trusts into bullion.
President confers Khel Ratna on Ronjan Sodhi, Arjuna Award on Virat Kohli
President Pranab Mukherjee conferred countrys highest sporting honor-Rajiv Gandhi Khel
Ratna Award on the topnotch shooter Ronjon Sodhi. Cricketing star Virat Kohli was
among the 15 sports persons honored with Arjuna Award. Among the other Arjuna
Awardees wereKavita Chahal, for boxing, Gaganjit Bhullar for Golf, Saba Anjum, for
hockey, Rajkumari Rathore, for shooting, PV Sindhu, for badmintonand Neha Rathi,
for wrestling.
A total of 5 coaches were honoured with Dronacharya awards. KP Thomas was honoured
with the Award for their life time contribution to coaching in Athletics and Raj Singh in
Wrestling.
Melbourne tops the list of livable cities in world

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September 1st, 2013
According to a survey conducted by the Economist Intelligence Unit, theAustralian city
of Melbourne is the most liveable city in the world while
conflict battered Syrias capital Damascus is the least liveable city. The survey also lists
Karachi and Dhaka among the least liveable cities.
Top 10 livable Cities of the World:
Melbourne (Australia), Vienna (Austria), Vancouver, Toronto, Calgary (all three in Canada),
Adelaide, Sydney (both in Australia), Helsinki (Finland), Perth (Australia) and Auckland (New
Zealand).
Bottom 10 Least livable Cities:
Damascus (Syria), Tehran (Iran), Douala (Cameroon), Tripoli (Libya), Karachi (Pakistan),
Algiers (Algeria), Harare (Zimbabwe), Lagos (Nigeria), Port Moresby (Papua New Guinea)
and Dhaka (Bangladesh).

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