RBI Grade B Current Affairs: 30 Sept 2019

Following are current affairs issues relevant for RBI grade B, SEBI, NABARD and other exams.

Economy: Exports

Economy: Exports

Subsidies and Countervailing Measures (SCM) Pact:

  • – India is not entitled to provide subsidies because its per capita gross national product (GNP) has crossed $1,000 per annum.
  • – If the ruling is upheld India will be required to discontinue the existing export promotion schemes.
  • – Under Article 3.1, developing countries with gross per capita income of $1,000 per annum are not entitled to provide export subsidies that are contingent upon export performance.

Explained further in our featured article here https://edquest360.com/understanding-wto-subsidies-agreement-subsidies-and-countervailing-measures/

Banking:

Deposit Insurance:

  • Deposit insurance ensures the depositor gets a certain amount, before the bank pays other parties it owes money to during the liquidation process.
  • In India deposits are insured up to Rs 1 lakh- the limit was set in 1993 (up from 30,000).
  • India’s coverage is $1400 only per depositor whereas other countries such as China ($70,000), Philippines ($9,500), Thailand ($160,000).
  • As of March 2018 about 62% of Individual deposit accounts had less than Rs 1 lakh, whereas it was at 90% in 1993 when the limit was set.
  • The insurance on deposit is governed by Deposit Insurance and Credit Guarantee Corporation Act, 1961.
Terms in News

Application Supported By Blocked Amount:

  • – When an investor applies for an IPO using the ASBA facility, the amount is blocked in his/her bank account for the IPO application. The amount is debited from the investor’s bank account only when the shares are allotted to the investor.Made mandatory by SEBI from 2016.

Dollar Bonds:

  • A dollar bond is a U.S. dollar-denominated bond that trades outside of the United States. Along with the principal, any coupon payments from the bond are paid in U.S. funds.

Other such bonds (foreign currency bonds):
1) Bulldog bonds- UK, Sterling pound.
2) Kangaroo bonds (Matilda bonds)- Australia
3) Samurai Bonds- Japan
4) Maple Bonds- Canada

Legal Entity Identifier:

  • The Legal Entity Identifier (LEI) is unique global identifier of legal entities participating in financial transactions. These can be individuals, companies or government entities that participate in financial transaction.
  • LEI is a 20-digit unique code to identify parties to financial transactions worldwide.
  • The Legal Entity Identifier (LEI) code is conceived as a key measure to improve the quality and accuracy of financial data systems for better risk management post the Global Financial Crisis.

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