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Economy/Business

Union Government of India Decided to Bring all Post Offices under Core Banking System

The Union Government of India decided to bring all the post offices across India under the core banking

solution system to cover more people of rural areas with AADHAAR seeded accounts.

The Adviser to the Planning Commission, Nidhi Khare explained that this will help the people to avail the

benefits of various schemes including old age pension and MGNREGA through direct benefits transfer.

Deputy Director General of UIDAI, Ashok Pal Singh, in context with the legality of AADHAR card explained

that AADHAAR card can be used as an identity as well as a residential proof for opening bank accounts of

any individual.

IFC Launched 1 Billion Dollar offshore Rupee Bond P rogramme to Strengthen India’s Capital Markets

International Finance Corporation (IFC), a member of the World Bank Group, launched a 1 billion dollars

offshore bond program to strengthen India’s capital markets and attract greater foreign investment.

Under the programme, IFC will issue rupee-linked bonds and use the proceeds to finance private sector

investment in the country.

This programme will help bring depth and diversity to the offshore rupee market and pave the way for an

alternative source of funding for Indian companies.

IFC’s offshore bond programme will pave the way for an alternative source of funding for Indian companies.

What are the offshore rupee bonds

• These are bonds denominated in rupees, but issued in international markets.

• Investor has to convert his currency into rupees before investing.

• The return and final redemption is also in rupees.

Why are such offshore bonds important

• They are an important way of internationalising Indian currency.

• It will improve acceptance of the Indian currency in setting trade.

• A deep market for local currency will help reduce dollar need of the economy.

• The diversity fund raising options for Indian borrowers.

About IFC

IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on

the private sector in developing countries.

Established in 1956, IFC is owned by 184 member countries, a group that collectively determines its policies.

IFC works in more than 100 developing countries allowing companies and financial institutions in emerging

markets to create jobs, generate tax revenues, improve corporate governance and environmental

performance and contribute to their local communities.

IFC’s vision is that people should have the opportunity to escape from poverty and improve their lives.

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Wal-Mart Stores Inc. and Bharti Enterprises ended u p their Joint Venture

Wal-Mart Stores Inc. and its Indian partner Bharti Enterprises ended up their joint venture. From now on, they

will independently own and operate separate businesses in the country. Wal-Mart will acquire Bharti's 50

percent stake in Bharti Wal-Mart Pvt. Ltd. and will run the business independently.

Bharti Wal-Mart Pvt. Ltd. runs about 20 wholesale stores in India under the Best Price Modern Wholesale

brand. Wal-Mart is the world’s biggest retailer.

As part of their agreement, Bharti will acquire the compulsory convertible debentures (CCDs) held by Wal-

Mart in Cedar Support Services, a company owned and controlled by Bharti.

India, in 2012, allowed foreign supermarket companies to own up to 51 percent of their local operations.

However, no company has applied to enter the country under the rule.

SEBI Proposed New Measures for Stock Exchanges to D eal with Incorrect Trades

The Securities and Exchange Board of India (SEBI) proposed new range of measures for stock exchanges in

order to deal with the fraudulent trading activities in the securities market. These measures include time-

bound approach as well as well-defined parameters.

SEBI announced the measures in the backdrop of at least four instances of incorrect trades, which in turn

disrupted the market in the recent past. The latest one includes placement of incorrect orders on the National

Stock Exchange in February 2013.

SEBI, for this purpose, released the discussion paper on policy in context with the incorrect trades. SEBI

explained that the objective of this is to have a uniform policy for trade annulment. The stock exchanges shall

adopt the transparent and time-bound approach in order to decide the cases related to annulment of trade,

before the final settlement is made. SEBI also announced that cancellation should take place only in certain

exceptional situations. These exceptional situations include market manipulation and fraud.

The discussion paper said that in order to facilitate certainty to trades executed on the stock exchange's

trading platform, the trades should not be annulled under normal circumstances. Trade annulment should

come only under certain circumstances which include regulatory action, error which impacts the sanctity of

price discover, market manipulation as well as fraud.

Apart from all this, SEBI also proposed that the bourses should analyse the impact of trade annulment. SEBI,

after releasing the discussion paper explained that prevention of the practices like these was a crucial part of

the risk management framework of stock exchanges. The stock exchanges also have online surveillance

mechanisms for the purpose of preventing market manipulations.

India Post Launched International Money Transfer Se rvice- 'Instant Cash'

The India Post launched instant electronic money transfer service in partnership with Wall Street Exchange (a

company of UAE's Emirates Post Group) in New Delhi.

In this regard, India Post signed an agreement with Wall Street Exchange for an International Electronic

Money Transfer service through Instant Cash product of the Emirates Post Group. The service was launched

by P. Gopinath, Secretary, Department of Posts, by receiving the first payment from United Arab Emirates.

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Instant Cash is a wholly owned subsidiary of the Emirates Post Group, and its services are available in 59

countries through more than 60,000 locations.

Salient features of the service are

1. Recipients will be able to receive their payment at any of the identified 17,500 post offices by producing the

unique transaction number along with their identity and KYC documents.

2. Money will be available for payment immediately.

3. Safe and secure transactions through established International Financial System of Universal Postal Union.

4. The service will be rolled out nationally in a phased manner.

5. The service will be provided through the International Financial System (IFS) of Universal Postal Union.

About India Post

India Post is the largest postal network in the world and has completed 158 years of existence. It has a

network of 1.55 lakh post offices in the country, of which more than 1.39 lakh are in the rural area. Besides

mail, it also provides various financial services like small savings instruments under Post Office Savings Bank

and Money Remittance, both domestic and international.

China and EU Signed a Bilateral Currency Swap Agree ment

China signed a 350 billion Yuan (45 billion Euro) currency swap agreement with the European Union, marking

a major step in internationalising its currency.

The agreement signed between the People's Bank of China (PBOC) and the European Central Bank (ECB).

The pact aimed to support bilateral trade and protect financial stability.

The agreement will last for three years and can be extended if both the parties agree.

The new arrangement will provide more liquidity to the Renminbi market in the Euro area, promote overseas

use of the Yuan, and help facilitate trade and investment.

So far China has signed currency swap deals totalling 2.2 trillion Yuan (358 billion US Dollars) with 22

countries and regions to push the international use of its Yuan.

India and Finland Signed an Agreement to Produce Cl ean Technology

India signed an agreement with Finland to produce indigenous ethanol and reduce the country’s dependence

on its import. It is a first-of-its-kind initiative to promote use of clean technology in India.

The agreement was inked between Finnish Minister for European Affairs Alexander Stubb and India’s Minister

of State for Petroleum and Natural Gas Panabaka Lakshmi in New Delhi.

According to the agreement state-run explorer Oil and Natural Gas Company (ONGC) and Finnish clean

technology firm Chempolis will set up a pilot project to produce ethanol, biochemicals and biocoal from

biomass residual matters.

While signing the agreement, the ONGC Chairman Sudhir Vasudeva told that since 75 percent of India’s

ethanol requirements are met through imports, there is a large requirement which is not being met by

indigenous production.

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General Awareness

India Signed MoUs with Seven Countries for Nalanda University Project

Government of India signed agreements with seven countries, who pledged their commitment to the Nalanda

University project in Bihar.

The Memorandums of Understanding (MoUs) were signed with Australia, Cambodia, Singapore, Brunei, New

Zealand, Lao PDR and Myanmar in the sidelines of East Asia Summit in Brunei.

These MoUs are important to India's plans to establish Nalanda University in Bihar as an institution of

international repute.

About Nalanda University Project

• Nalanda University will be constructed at Rajgir, which is situated around 100 km away from Patna, Bihar.

The construction of the university will take place on a 446 acre plot, which is situated 12 km away from the

ruins of ancient seat of learning.

• The idea to revive Nalanda University was first mooted in 2005 by President Abdul Kalam.

• The University is being built near the ruins of the 5th century historic academic place by the same name in

Bihar and those involved with this project include Nobel Laureate Amartya Sen.

• There will be five representatives from the EAS on the Nalanda University governing board.

• China has already committed 1 million dollars for the project, Singapore has pledged 5-6 million dollars and

Australia about 1 million Australian dollars and all these funds have been committed on voluntary basis.

The East Asia Summit (EAS) is a forum for cooperation between various countries of this region with ASEAN

and includes Australia, China, India, Japan, Republic of Korea, New Zealand, Russia and the US, in addition

to the ten ASEAN (Association of South East Asian Nations) countries.

The 10 ASEAN nations are Brunei, Cambodia, Indonesia, Malaysia, Myanmar, Laos, Philippines, Singapore,

Thailand and Vietnam.

INS Sunayna Commissioned into Indian Navy

The Indian Navy inducted into service its largest offshore patrol vessel (OPV), INS Sunayna, at the Southern

Naval Command. The ship was designed and built by the public sector Goa Shipyard. The ship is equipped

with the most advanced communication, navigation and electronic warfare equipment besides a 76 mm

SRGM (Super Rapid Gun Mount), and close-in weapon system (CIWS). INS Sunayna will strengthen the

capability of the Indian Navy to safeguard the maritime interests.

Alice Munro Won the 2013 Nobel Prize for Literature.

Alice Munro won the 2013 Nobel Prize for literature and became the first Canadian woman to win the Nobel

Prize since its launch in 1901.

Alice Munro is the 13th woman who got Noble Prize.

Life Sketch of Alice Munro

• Alice Munro was born on the 10 July 1931 in Wingham, the Canadian province of Ontario.

• She started writing stories in her teens, but published her first book-length work in 1968, the story collection

entitled ‘Dance of the Happy Shades’.

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• Her works include Who Do You Think You Are? (1978), The Moons of Jupiter (1982), Runaway (2004), The

View from Castle Rock (2006) and Too Much Happiness (2009).

• The collection Hateship, Friendship, Courtship, Loveship, Marriage (2001) became the basis of the film

Away from Her from 2006, directed by Sarah Polley.

• Her most recent collection is Dear Life (2012).

• She won the Man International Booker Prize in 2009.

• She won the Giller Prize twice, for The Love of a Good Woman in 1998 and Runaway in 2004.

• She is a three-time winner of the Governor General's Literary Award, for Dance of the Happy Shades, Who

Do You Think You Are and The Progress of Love (1986).

Michael Levitt, Martin Karplus and Arieh Warshel won the 2013 Nobel Prize for Chemistry

Michael Levitt, a British and US citizen of Stanford University, US-Austrian Martin Karplus of Strasbourg

University and US-Israeli Arieh Warshel of the University of Southern California shared the 2013 Nobel Prize

in Chemistry.

While announcing their names, Royal Swedish Academy of Sciences told that the 2013 Nobel Laureates in

Chemistry have made it possible to map the mysterious ways of chemistry by using computers.

Why were they awarded the Nobel Prize in Chemistry 2013

• They were awarded the Nobel Prize in Chemistry 2013 for the development of multiscale models for

complex chemical systems.

• The trio devised computer simulations to understand chemical processes.

• Their research laid the foundations for new kinds of pharmaceuticals.

• Their research contributed to exploring multiple options in cyber space.

S. R. Bansal took the charge as the Chairman and Managing Director of Corporation Bank.

S. R. Bansal took the charge as the Chairman and Managing Director of Corporation Bank.

Prior to assuming the position of Chairman and Managing Director of Corporation Bank, he was Executive

Director of Punjab National Bank.

About S. R. Bansal • S. R. Bansal is a Post Graduate in English, a Certified Associate of Indian Institute of Bankers (CAIIB) and

an Associate of Indian Institute of Banking & Finance (AIIBF).

• He is a seasoned banker with over 32 years of rich experience in various administrative and functional

capacities.

• He started his banking career as a Direct Officer Recruit at Dena Bank in 1981 and went on to hold the office

of the Field General Manager (North India) covering eight states.

• He was appointed as Executive Director of Punjab National Bank in June 2012, where he was responsible

for large field operations and many other key areas.

Eugene Fama, Lars Peter Hansen, Robert Shiller Won the 2013 Nobel Prize for Economics

The Royal Swedish Academy of Sciences decided to award the Sveriges Riksbank Prize in Economic

Sciences in Memory of Alfred Nobel for 2013 to Eugene F. Fama, Lars Peter Hansen and Robert J. Shiller for

their empirical analysis of asset prices.

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1. Eugene F. Fama

University of Chicago, IL, USA

2. Lars Peter Hansen

University of Chicago, IL, USA

3. Robert J. Shiller

Yale University, New Haven, CT, USA

The three American economists were awarded for their work on creating a deeper knowledge of how market

prices move. The prize is worth 8 million Swedish Krona (775,000 pounds; 1.2 m dollars), which will be shared

equally among the three winners.

The Nobel Prize in Economic Sciences

•The Nobel Prize in Economic Sciences is not one of the original Nobel Prizes.

• It was created in 1968 by the Swedish Central Bank in memory of Alfred Nobel, who established the prizes

for Chemistry, Medicine, Physics, Literature and Peace in 1895. The first prize for economics was awarded in

1969.

• The Nobel Foundation does not officially recognise it as a Nobel Prize, but as the Sveriges Riksbank Prize in

Economic Sciences in the memory of Alfred Nobel.

• The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel has been awarded 45 times

to 74 Laureates between 1969 and 2013.

In 2012, the Sveriges Riksbank Prize in Economic Sciences was awarded jointly to Alvin E. Roth and Lloyd S.

Shapley for “the theory of stable allocations and the practice of market design".