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