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April 18th, 2012 | Comment|

1. As per a report, India received $2.21 billion in foreign direct investment in February 2012. Which among the following countries is the top source of FDI to India? [A]Singapore [B]Mauritius [C]USA [D]Japan Show Answer 2. Recently we read in the newspapers that Central Bureau of Investigations (CBI) has been investigating some companies for alleged violations of provisions of FCRA, 2010. What is this FCRA 2010? [A]Foreign Companies Regulation Act 2010 [B]Fiscal Control & Regulation Act 2010 [C]Foreign Commercial Representation Act 2010 [D]Foreign Contribution Regulation Act 2010 Foreign Contribution Regulation Act 2010 Show Answer 3. In India, the Foreign Exchange Reserves are kept in the custody of which among the following? [A]Ministry of Finance

[B]EXIM [C]Reserve [D]Select Public Sector Banks Reserve Bank of India

Bank

of

Bank India

Show Answer 4. Which among the following country has started paying Indian Exporters in Indian Rupees, after an arrangement to that effect has been done by Government of India? [A]Pakistan [B]Iran [C]Myanmar [D]South Korea Iran India's exporters have begun receiving the first rupee payments from Iran, thus kicking off the mechanism to skirt Western sanctions from March 2012. Show Answer 5. Many banks in India have gone for ISO 27001:2005 certification for compliance with which among the following? [A]Best Customer Service [B]Best Security Practices [C]Excellent Financial strength [D]Excellent Business Values Best Security Practices ISO/IEC 27001:2005 is for Information technology -- Security techniques -- Information security management systems -- Requirements Show 6. Which 1. 2. 3. Choose [A]Only [B]Only [C]Only [D]1,2 & 3 1,2 & 3 Show Answer 7. Republic of Tatarstan was recently making news as an Indian company has reportedly decided to invest in petrochemical or refining facility in the region. Which among the following statements is correct about Republic of Tatarstan? [A]Its an independent Country in Central Asia [B]Its a foreign territory administered by UK [C]Its a federal subject of Russia [D]Its a sovereign country in Middle East Its a federal subject of Russia Show Answer 8. Which of the following state Governments in India has recently launched the gram suraj abhiyan (village contact Answer basis? CPI WPI IIP option: 3 3 1

among

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programme) to [A]Rajasthan [B]Madhya [C]Chhattisgarh [D]Punjab Chhattisgarh Show 9. Which among [A]International [B]Asian [C]IBRD [D]UNDP

reach

to

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door

of

the

people

in

the

remote

areas

of

the

state? Pradesh

the

following

organization

is largely funding Development Development

the

National

Dairy

Answer PlanPhase I ? Association Bank

International Development Association The new central sector scheme, National Dairy PlanPhase I (NDP-I) with an outlay of Rs 2,242 crore will be launched on April 19, 2012 at National Dairy Development Board, Anand by Sharad Pawar, union agriculture minister, government of India. Gujarat chief minister, Narendra Modi will remain present at the event. The plan is for six years and will be implemented in the 14 major milk producing states. The scheme will be largely financed with loan from the International Development Association of the World Bank and implemented by NDDB through end implementing agencies. Show Answer 10. Which among the following is the short name of highest authority in India for Indirect Taxes? [A]CBED [B]CBDT [C]CBEC [D]CBIT Central Board of Excise and Customs (CBEC) Show 11. Which among the [A]Raising [B]Raising the [C]Purchase of [D]Rationing of the Credit Answer measure? Rates Requirements Markets

following the

can

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inflationary

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Purchase of securities in the Open Markets The C is correct option. This is because Purchase of securities in the Open Markets would lead to more liquidity system and more liquidity means more money will chase the same goods. Show Answer 12. If the Reserve Bank of India wants to increase the Cash Reserves commercial Banks, which among the following would be the most probable step taken by it ? [A]Release Gold from its reserves [B]Buy bonds in the open market [C]Prohibit the transactions that involve bill of exchange [D]Increase the tranche reserves with the IMF Buy bonds in the open When RBI buys bonds in the open market, Banks get money and Cash Reserves would increase. market

Show Answer 13. The Government of India has recently launched a Youth to the Edge pilot scheme in North East India for which among the following purposes? [A]To encourage the youth of the North East India to take active participation in development programmes [B]To provide laptops to the Youth of the North East India [C]To introduce youth from rest of India to the North Eastern Culture [D]To provide vocational education to the youth of North East To introduce youth from rest of India to the North Eastern Culture The Pilot Scheme aims to introduce youth from rest of India to the North Eastern Region (NER) and organise combined adventure activities along with the youth from NER. They will also be given exposure about local culture, traditions and life style. Conduct of adventure training will benefit the participants by inculcating spirit of adventure, environmental awareness, national integration, casualty evacuation, promotion of adventure tourism, channelizing youth energy in positive direction, sense of self employment and self recognition. Show 14. What [A]120 [B]140 [C]170 [D]200 Kg Answer land? Kg Kg Kg

is

the

approximate

average

fertilizer

consumption

in

India

per

hectare

of

140 Kg With average fertilizer consumption at 144.14 kg per hectare India is using much less quantities of chemical fertilizers compared to other developing countries. But imbalanced use of chemical fertilizers coupled with low addition of organic matter and neglect of micro and secondary nutrients over the years has resulted in nutrient deficiency and deterioration of soil health in many parts of the country, particularly in the intensively cultivated Indo-Gangetic plains. Show 15. The [A]Cotton [B]Wheat [C]Coffee [D]Rice Answer following?

new

variety

Rajarajan

1000

is

of

which

among

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Rice Forty seven varieties of hybrid paddy have been developed and released/notified for cultivation in the country. System of Rice Intensification (SRI) is being promoted under National Food Security Mission - Rice for increasing the production and productivity of rice. SRI has been named as Rajarajan 1000 to commemorate 1000 years celebration of Tanjore Big Temple. SRI demonstrations under the scheme are being promoted for 0.4 ha each by providing the assistance of Rs.3000/- per demonstration. National Food Security Mission Rice is being implemented in 144 districts of 16 States. (Ministry) Show Answer
April 6th, 2012 | Comment|

Yes Bank gets $75-mn loan from IFC

The International Finance Corporation (IFC), a member of the World Bank Group, has decided to give $75 million loan to Yes Bank to help expand its network, reach out to small and medium enterprises (SMEs) and agricultural clients, and increase portfolio 3.5 times to $7.7 billion by 2016. This investment will be in the form of a 15-year subordinated bond. It is expected to strengthen the bank's capital base significantly.

YES Bank is one of the few banks to provide direct microfinance services to villages, in line with IFC's financial inclusion strategy. According to IFC, nearly 80 per cent of India's population lack access to formal financial services and only 30,000 of India's 600,000 villages have a bank. Micro, small and medium enterprises in India are constrained by lack of adequate management skills, modern technologies, industrial infrastructure and financial access. IFC seeks to bridge the financing gap and enhance the capacity of the sector. This funding comes at a time when there is little international appetite for investment of this volume and tenor.

NABARD signs agreement with Uttarakhand to waive off weaver's loan

National Bank for Agriculture and Rural Development (Nabard) has entered into agreement with Uttarakhand Government to waive off loans to all weavers' loans up to Rs. 50,000. The MOU has been signed between Nabard and the government of Uttarakhand for implementation of this package for revival and restructuring of handloom weavers' structure in the state.

Stuart Milne: New CEO of HSBC India

Hong Kong and Shanghai Banking Corporation (HSBC) has appointed Stuart Milne as chief executive officer for its India business. Milne has replaced Stuart A Davis who is moving to a new position within the bank after a threeyear stint in this role. Prior to this appointment, Milne was the country manager of Japan since 2007. In that role he served as the president and chief executive officer of HSBC, chairman of HSBC Securities (Japan) and chairman of HSBC Global Asset Management (Japan) KK.

Knowledge Bytes

Naina Lal Kidwai, a director at HSBC in Asia-Pacific, is currently the country head of the bank in India. India was the sixth most profitable market for the bank after Hong Kong, China, the UK, Brazil and Canada.

19 Banks consortium approves financial restructuring plan of Air India

The SBI led consortium of 19 banks has approved the financial restructuring plan of Air India recently. The financial restructuring plan includes debt restructuring of Rs 18,000 crore by the banks and a committed equity infusion by the government. It would need Cabinet approval, which is expected in the mid of April 2012.

World Bank Group President Robert B Zoellick visits Chennai

World Bank Group president, Robert B Zoellick recently visited to the Chennai office of the Development Bank. The Chennai office provides corporate, financial, accounting, administrative and IT services to its operations around the globe. Zoellick also visited the energy-efficient 'green' building, featuring carbon sensors, automated lighting, air-conditioning systems, and water recycling plants of the Chennai Office.

Knowledge Byte:

The 500 strong staff of World Bank office in Chennai works in a 128,000-square ft

facility, which is the largest World bank-owned building outside of its Washington DC headquarters.

RBI to Conduct Open Market Operations

Reserve Bank of India has recently infused Rs. 10,000 crore via open market operations (OMOs) to ease the tight liquidity conditions. Open Market Operations is a quantitative tool of monetary policy of the Reserve Bank of India which includes buying and selling of securities in the money market by the central bank. RBI said that this step was consistent with the stance of monetary policy and was based on the current assessment of prevailing and evolving liquidity conditions. In the recently conducted OMO, RBI purchased four government securities, including the current 8.79 per cent 10-year benchmark government bonds maturing in 2021.

RBI Relaxes FDI Investment norms for Indians

RBI has recently announced a slew of revisions aimed at liberalising the norms for direct investment abroad by Indian residents. These include liberalisation in regulations on qualification shares, professional services rendered and ESOP (employee stock option plan) schemes.

April 6th, 2012 | Comment|

FM warns Irda for 'suicidal competition' among Insurance Companies

Recently, Irda (Insurance Regulatory and Development Authority) was asked by the Government to take steps to curb the menace of "suicidal competition" among insurance companies, which are undercutting one another by offering policies at low premium to grab a bigger market share. FM said that the unhealthy competition among the insurance companies is impacting their account books. Its worth note that Insurance companies in India are free to fix premium (it is called de-tariffing), and it has resulted in significant lowering of premiums for the consumers. The result is an adverse impact on the insurance company's balance sheet.

Knowledge Bytes

Investments by the insurance industry in infrastructure as on March 31, 2011, were Rs 1.98 lakh crore, of which 78 per cent has come from public sector insurers. The insurance sector's penetration has improved over the years to 5.1 per cent in 2010, from 2.71 per cent in 2001.

Bankers Ask the RBI to cut CRR

RBI's annual monetary policy review is scheduled on April 17, 2012. The Bankers have asked the Central Bank to go for a steep reduction in the cash reserve ratio (CRR) and the repo rate. The Public Sector Banks have requested RBI to cut repo rate by 50 basis points and also demanded reduction in the cash reserve ratio to the extent of 75 basis points.

ICRA downgrades the UCO Bank Bonds

Rating agency ICRA has cut the rating for UCO Bank's lower Tier-II bonds from "AA+" to "AA". The reasons cited by the agency include deterioration in asset quality and weak solvency profile. It's worth note that ICRA has already lowered the rating for Oriental Bank of Commerce's bonds for increase in non-performing assets. Global rating agency Moody's has also downgraded the rating for some instruments of Union Bank of India and Bank of India.

ICRA downgrades bonds of OBC

ICRA has also downgraded Oriental Bank of Commerce's bonds. The reasons cited are worsening asset quality and sustained pressure on profitability. The rating agency has revised ratings outstanding on the Rs 1,000-crore lower Tier-II bond programmes of the lender from AAA (stable) to AA+ (stable).

NABARD's Gujarat support touches Rs 4340 crore

During the financial year 2011-12, Gujarat has received ` 4340 crore financial assistance from NABARD for supporting agriculture, rural development and rural infrastructure development. This is a 50% rise from Rs 2894 crore assistance in 2010-11. The financial assistance included Rs 3270 crore refinance support to banks for expanding farm and nonfarm sector loans, Rs 780 crore loan to Government of Gujarat under the Rural Infrastructure Development Fund [RIDF], Rs 205 crore direct finance to District Co-operative banks, Rs 69 crore support for developing warehouse/cold storages and Rs 16 crore loan for setting up two innovative solar power projects.

NABARD sanctions Rs 144.49 crore to Punjab under RIDF

Nabard has sanctioned Rs 144.49 crore to the Punjab government under Rural Infrastructure Development Fund for two projects. The first project for "Construction of seven Rural Roads in six districts" of the state and the second project for "Eradication of Water-logging problem in Muktsar district" of the state.

April 6th, 2012 | Comment|

Fino to target North East

Financial Inclusion Network and Operations (Fino), a Mumbai-based financial inclusion facilitator, makes plans to tap the north-eastern region and help in achieving financial inclusion there. Fino has tied up with four banks including State Bank of India (SBI), Axis Bank and ICICI Bank to tap this region. Fino has largest market in Andhra Pradesh, where it has presence across 620 blocks and 9,900 gram Panchayats.

SBI's Credit Targets 19-20%

India's largest lender State Bank of India (SBI) is aiming to post a credit growth of 19-20 per cent in the current financial year. The Chairman of SBI Pratip Chaudhari discloses that last year, the Credit Growth target was 18-20%, which was reduced to 16-19 per cent from an estimated projections of 19-22 per cent at the beginning of the year. Lowering of growth targets was mainly due to lack of demand from corporates owing to economic slowdown.

Indian Economy under tight liquidity situation

The economy of India seems to be under tight liquidity condition, as all macroeconomic indicators blinking red.

Currently, Inflation is not in RBI's comfort zone and the recently presented budget has proposed a fiscal consolidation plan, with under-priced subsidies. Apart from that RBI's intervention in the foreign exchange market to support the rupee has resulted in a severe liquidity crunch, as reserve money creation has been slow. These all factors indicate that in near future RBI may not cut the policy rates.

No additional monetary stimulus- Federal Reserve

The United States Federal Reserve's Open Market Committee has recently voted against further stimulus on the ground that the US economy gradually improves. So far two rounds of Fiscal stimulation have been carried out and third round was eminent till January 2012. However, in these months there has been a turnaround in the tone and now it has been decided not to go with bond purchases to boost growth. The recent development has hammered US stocks, bonds and gold, while boosting the dollar.

India's Annual Credit Growth

The RBI has released the latest data of the Credit Growth in Indian Banking System. It says that in February and March, Banks added Rs 2.6 lakh crore, or a little more than a third of the financial year's total of Rs 6.6 lakh crore of loans. As on March 23, annual credit growth stood at 16.98 per cent, above the central bank's revised projection of 16 per cent. Its worth note that RBI has scaled down the year-end credit growth projection twice. The central bank had increased the repo rate by 175 basis points in April-October 2011 to tackle high inflation and inflationaryexpectations, and banks had responded by increasing lending rates. So, the demand for credit waduring the initial part of financial year 2011-12.

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Chinese national Jin-Yong Cai to lead World Bank's private financial arm
August 23rd, 2012 | Comment|

Chinese national, Jin-Yong Cai has been appointed as the head of World Banks private financial arm International Finance Corporation (IFC). Jin-Yong Cai, will be the new Executive Vice President and CEO of IFC. IFC is the largest global development institution and concentrates exclusively on the private sector.

P.K.B Pattnaik selected for Domien-Dutton award

August 23rd, 2012 | Comment|

Orissa's state Leprosy Officer P.K.B. Pattnaik, has been chosen for the prestigious Damien-Dutton award for the year 2012 for his efforts in the field of leprosy eradication. Damien-Dutton Award: It is given to people who make significant contribution in the fight against Leprosy. Some of the other renowned personalities to have received the award in the past: Mother Teresa, Baba Amte and Dr. Dharmendra. Odisha was the first State in India to accomplish the leprosy elimination goal of the World Health Organisation in 2006. Prime Minister of Ethiopia Meles Zenavi passed away
August 23rd, 2012 | Comment|

Meles Zenavi, the Ethiopian Prime Minister, died of prolonged illness. He was 57. After his death, the charge of the acting prime minister will be assumed by its Deputy Prime Minister Hailemariam Desalegn. PJ Kurien becomes Deputy Chairman of Rajya Sabha
August 23rd, 2012 | Comment|

Congress leader PJ Kurien has been elected as the Deputy Chairman of Rajya Sabha. Prime Minister Manmohan Singh moved the motion for the election of Kurien. In case of leave or absence of Chairman of Rajya Sabha (the Vice-President of India), Deputy Chaiman of Rajya Sabha acts as Presiding Officer of the House. Rory Mcllroy wins US PGA Golf Championship
August 22nd, 2012 | Comment|

Rory Mcllroy won the US PGA Golf Championship at This victory has made Mcllroy world number one player surpassing Luke Donald.

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