Current Affairs -2013

Recapitalization of Public Sector Banks

The Union Cabinet on 10^th January, 2013 has approved the following:

(i) To provide capital funds to Public Sector Banks (PSBs) during the year 2012-13 to the tune of Rs.12,517 crore to maintain their Tier-l CRAR at comfortable level, so that they remain compliant with the stricter capital adequacy norms under BASEL-III as well as to support internationally active PSBs for their national and international banking operations undertaken through their subsidiaries and associates.

(ii) `In principle` approval of the Cabinet is accorded for need based additional capital infusion in PSBs from the year 2013-14 to 2018-19 for ensuring compliance to Capital Adequacy norms under Basel- III.

This will ensure compliance to the regulatory norms on capital adequacy and will cater to the credit needs of productive sectors of the economy as well as to withstand the impact of stress in the economy. This will also support national and international banking operations of PSBs and will boost the confidence of investors and market sentiments.

The infusion of Rs. 12,517 crore in the equity capital of PSBs would enable them to expand their credit growth. This additional availability of credit will cater to the credit needs of our economy and will also benefit employment oriented sectors, especially agriculture, micro & small enterprises, export, entrepreneurs etc. in promotion of their economic activities which would, in turn, contribute substantially to the growth of the economy.

The exact amount, mode of recapitalization and other terms and conditions in each PSB would be decided in consultation with them at the time of infusion.

Background

The Government is committed to keep all the PSBs financially sound and healthy so as to ensure that the growing credit needs of our economy are adequately met. To meet the credit requirement of the economy, banks would require capital funds commensurate to the increase in their Risk Weighted Assets (RWAs).

Implementation of Basel III Capital Regulations enhances requirement of core equity capital by banks due to higher capital ratios. The Basel III capital ratios will be fully phased in as on March 31 2018. The requirement of core equity will also increase due to increase in RWAs of banks under Basel III, as risk weights in the areas of credit risk including counterparty credit risk, external credit assessments and market risk are higher than those in present regime of Basel II.

In view of this, the Government has decided to infuse capital in PSBs during the year 2012-13.

Source: PIB

Current Affairs-2013

Enhancement of unit assistance under the Indira Awaas Yojana

The Union Cabinet on 10^th January, 2013 has approved the proposal of the Ministry of Rural Development to provide a quality and affordable house and also taking into account numerous requests from the stakeholders for increasing the unit cost, keeping in view the steep increase in cost of materials. The approval is as follows:

(i) Enhancement of unit assistance under the Indira Awaas Yojana (IAY) from Rs. 45,000/- to Rs. 70,000/- in plain areas and from Rs. 48,500/- to Rs. 75,000/- in hilly/difficult/LAP district;

(ii) Enhancement of unit assistance provided for homestead site to rural Below Poverty Line (BPL) households who have neither agricultural land nor a house site for purchase/acquisition of a homestead site from Rs.10,000/- to Rs.20,000/-. This was a major point in the Agreement between Govt. of India and Jan Satyagraha on 11th October 2012 at Agra.

The IAY is a flagship scheme of the Ministry of Rural Development and aims at addressing rural housing issues by providing grant for construction / upgradation of dwelling units of BPL families especially giving priority to Scheduled Castes/Scheduled Tribes, freed bonded labourers and physically challenged persons with financial assistance of Rs. 45,000/- in plain areas and Rs. 48,500/- in hilly /difficult areas.

Source: PIB

Current Affairs-2013

Amendments to Regional Rural Banks (RRBs) Act, 1976

The Union Cabinet on 31^st January 2013 gave its approval to the proposed amendments in the Regional Rural Banks (RRBs) Act, 1976 to enhance authorized and issued capital to strengthen their capital base. The term of the non official directors appointed by the Central Government is proposed to be fixed not exceeding two years.

The proposed amendments will ensure financial stability of RRBs which will enable them to play a greater role in financial inclusion and meet the credit requirements of rural areas and the Boards of RRBs will be strengthened.

Background

Regional Rural Banks (RRBs) were established under Regional Rural Banks Act, 1976 (the RRB Act) to create an alternative channel to the `cooperative credit structure and to ensure sufficient institutional credit for the rural and agriculture sector.

RRBs are jointly owned by the Government of India, the concerned State government and sponsor banks, with the issued capital shared in the proportion of 50 percent, 15 percent and 35 percent, respectively. As per provisions of the Regional Rural Banks Act, 1976 the authorized capital of each RRB is Rs. 5 crore and the issued capital is a maximum Rs. 1 crore

Current Affairs-2013

Amendments to the National Bank for Agriculture and Rural Development (NABARD) Act, 1981

The Union Cabinet on 7^th February, 2013 gave its approval to the amendments to the National Bank for Agriculture and Rural Development (NABARD) Act 1981

 
The following amendments to the NABARD Act 1981 are proposed:

 
1. Raising the authorized capital of NABARD to Rs. 20,000 crore from Rs. 5,000 crore.

2. The meaning of cooperative society is proposed to be enlarged to include multistate cooperative societies registered under any Central law or any other Central or State law relating to cooperative societies.

 
3. Change of ownership to facilitate the transfer of the remaining share capital of NABARD from the Reserve Bank to the Central Government.

 
4. Increasing the scope of operations of NABARD under short term funding purposes and other changes.

 
The following benefits are projected by this amendment:

 
1. By increasing the authorized capital of NABARD to Rs 20,000 crore from Rs 5,000 crore, the ability of NABARD to mobilize resources from the market will be enhanced thereby new credit products, new credit linkages and new clients will be developed.

2. The amendments allow NABARD to lend to new institutions, mainly Societies covered under multistate cooperative societies act and other central laws, producer organizations or such class of financial institutions which are approved by the Central Government. This is likely to benefit a larger segment of the financially excluded farmers in the country.

3. The amendments allow combination of credit, creation of short term operations fund and swapping of debt of farmers.

 
4. The decision of the Government to transfer the balance one percent shares to the Govt. of India from Reserve Bank of India (RBI) in NABARD shall be carried out, which will provide for increased public accountability, as the Government will acquire the equity held by RBI. 

5. NABARD will combine the post of Chairman and the post of Managing Director, into one, therefore Chairman and Managing Director, under the provisions of the NABARD Act relating to these two posts. This shall ensure a distinct line of command.

Background

NABARD was established on 12 July 1982 to provide sharp focus to agriculture credit and rural development. NABARD adopted, as its mission, the promotion of sustainable and equitable development of agriculture and rural prosperity through effective credit support, related services, institution development and other innovative initiatives.

పద్మ అవార్డులు

‘పద్మ’అవార్డులను కేంద్ర ప్రభుత్వం శుక్రవారం(25.01.2013) ప్రకటించింది. దేశ వ్యాప్తంగా నలుగురికి పద్మ విభూషణ్ అవార్డులు దక్కగా, 24 మందికి పద్మ భూషణ్ అవార్డులు లభించాయి. 80 మందికి పద్మశ్రీ అవార్డుల దక్కాయి.

  రాష్ట్రం నుంచి ప్రముఖ సినీ నిర్మాత డి. రామానాయుడికి పద్మ భూషణ్ అవార్డు లభించగా, డా. చిట్టా వెంకట సుందరం, ఎం రామకృష్ణరాజులకు పద్మశీ పురస్కారాలు దక్కాయి.

                                              బాపుకు తమిళనాడు కోటాలో పద్మశ్రీ పురస్కారం దక్కింది.

నానాపటేకర్, డా. రాధిక, శ్రీదేవి, సురభి బాబ్జి, జి. అంజయ్య, రాహుల్ ద్రవిడ్‌లకు పద్మశ్రీ పురస్కారాలు లభించాయి. ప్రముఖ గాయని ఎస్.జానకికి తమిళనాడు కోటాలో పద్మ భూషణ్ అవార్డు లభించింది. షర్మిలా ఠాగూర్, రాజేష్ ఖన్నా, జస్పాల్‌బట్టీ, ఆది గోద్రెజ్‌లకు పద్మ భూషణ్ అవార్డులు దక్కాయి. మొత్తం మీద రాష్ట్రం నుంచి 8 మందికి 'పద్మ' పురస్కారాలు లభించాయి