CURRENT AFFAIRS
(8th–14thJune) of 2015
GNXX CALC X24A EN15
THE NATION
ARMY & AIR FORCE COORDINATED OPERATION KILLS AROUND 50 INSURGENTS IN MYANMAR
 More than 50 insurgents were killed, when army with the co operation of Air Force, destroyed two insurgency camps in Myanmar.
 This is the rarest of such instances as the Indian operations are in foreign land.
• In an ambush on Armed Forces last week, 20
 Indian officials said that they were in communication with Myanmar authorities.
were killed from the 6 Dogra Regiment.
• Bases of several militant organisations in NE
• Most of the militants belong to NSCN (K) outfit
region are in Myanmar.
• NSCN(K) .. National Socialist Council of Nagaland (Khaplang)
MYANMAR OPERATION … ARMY STRIKES WITH PRECISION
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Forces in Helicopters reached Nagaland and Manipur around midnight.
It was divided into two teams of 20 to 25 commandos each.
Insurgent camps are around 5 to 7 kms. inside the border in Myanmar.
Dhruv and Mi-17 V 5 helicopters (capable of night operation) were used.
UAVs were also deployed.
INDIAN NUCLEAR INSURANCE POOL WITH RS 1500 CR WAS SET UP
• This was one of the issues
sorted out, when President
of USA Barack Obama
visited India.
 This insurance pool was created with Rs 1500 cr by GIC (Re) and 11 other non-life Insurance companies.
 As per the clauses in the Civil Liability for Nuclear Damage Act (CLND Act) 2010
 Operator in India has got the right to sue the supplier, in case of any nuclear accident
 This has become the biggest hindrance, as the international suppliers felt that hefty damages may be slashed on them, in case of accident
 The concerns of nuclear suppliers led to the formation of “Indian Nuclear Insurance Pool” and the damages will be met from this pool
SEARCH ON FOR MISSING COAST GUARD DORNIER AIRCRAFT CG 791
 Massive search operations are being conducted
 INS Sandhayak was pressed into service, which received intermittent signals from Sonar Locating Beacon (SLB)
 These signals are somewhere around Karaikkal
 Multi–coloured oil in concentric circles was found in the area
 Submarine INS Sindhudhavaj was also pressed into service
 National Institute of Ocean Technology (NIOT) sent its research vessel “SagarNidhi” for under water search
 Reliance was also approached to extend services of its Multi Support Vessel (MSV) with Remotely operable Underwater Vehicle (RUV)
 Around 10 coast guard and Indian naval ships with two aircraft are undertaking the operation.
• This aircraft was designed by Dornier Flugzeugwerke (German company) and manufactured by
HAL and introduced into service in 2014.
• This went missing on 8th June, from East Coast of India after taking off from Chennai.
K.V. CHOWDARY IS NEW CVC & VIJAY SHARMA IS NEW CIC
 SudhirBhargava is appointed the new Information Commissioner.
 The Commission at present constitutes CIC + 7 Information Commissioners. (maximum Information Commissioners can be 10)
•
T M BHASIN
New Vigilance Commissioner
(Present MD & CEO of Indian Bank)
Now the Commission is full with CVC + 2 Vigilance
Commissioners
These posts are lying vacant for the past 8 to 9 months.
CENTRAL VIGILANCE COMMISSION
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“Committee on Prevention of Corruption” headed by K. Santhanam recommended for its establishment.
Established in Feb 1964.
It advises and guides Central Government in the field of vigilance.
It was made multi member commission with statutory status from 25th Aug 1998.
From Sept 12, 2003, CVC act 2003 (Act no. 45 of 2003) came into force.
It constitutes CVC as Chairperson and not more than 2 VC’s as members.
From April 2004, Govt. authorised CVC to receive written complaints on any allegation of corruption.
CENTRAL INFORMATION COMMISSION
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RTI Act was brought in 2005 (Act no. 22 of 2005)
Any citizen can obtain any information under this act and has to make a request in writing or through electronic means.
Application to be addressed to CPIO / SPIO or CAPIO / SAPIO as the case may be
No reasons are to be given
 They should give information within 30 days.
 Central Information Commission to be constituted with one CIC and Information Commissioners not exceeding 10.
ENTRY OF RELIANCE JIO BY DECEMBER … ANOTHER TELECOM WAR IN THE OFFING?
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R JIO plans to rollout 4G (Fourth Generation) telecom services by December
4G Technology is also known as LTE (Long Term Evolution)
It facilitates viewing of HD Television, Music on Demand, High Speed Data Transfer
The smart phone will be priced below Rs 4000
A price war in wireless
The charges will be Rs 300 to Rs 500 per month
broadband category
100% national coverage within the next 3 years
appears imminent!
• Reliance Jio has partnered with SBI for
payment bank license.
• It applied for pan India cable television multisystem operator license to enter broadband TV
distribution.
ECONOMY
RBI LIBERALISES KYC NORMS
 RBI notified “easier documentation norms” for opening bank accounts
 This additional relaxation is made possible after the Govt. amended Money Laundering Rules 2005
 The documents notified for “proof of address” are This
liberalization
is
 As a simplified measure
• Govt. brought Money Laundering Act in 2002.
primarily keeping in view
 For low risk customers
• This act is made applicable since 1st July 2005.
opening of bank accounts
• Subsequently, Govt. also brought Money
in a massive scale by the
Laundering Rules 2005.
citizens of the country.
OFFICIALLY VALID DOCUMENTS UNDER SIMPLIFIED MEASURES FOR LOW RISK CUSTOMERS FOR ADDRESS PROOF
 Utility bill which is not more than two months old of any service provider (electricity, telephone, post-paid mobile phone, piped gas, water
bill)
 Property or Municipal Tax receipt
 Bank account or Post Office savings bank account statement
 Pension or family pension payment orders (PPOs) issued to retired employees by Government Departments or Public Sector Undertakings, if
they contain the address
 Letter of allotment of accommodation from employer issued by State or Central Government departments, statutory or regulatory bodies,
publicsector undertakings, scheduled commercial banks, financial institutions and listed companies. Similarly, leave and license agreements
with such employers allotting official accommodation and
 Documents issued by Government departments of foreign jurisdictions and letter issued by Foreign Embassy or Mission in India.
RBI ANNOUNCES STRATEGIC DEBT RESTRUCTURING (SDR)
Before going in to the details, Let us look at the Stressed Assets scenario in the banking system
STRESSED ASSETS
Description
1. Gross NPA’s
st
As on 31 March 2015
Rs 3.1 Lakh crore
(4.4% of total loans)
2. Restructured Advances
Rs 4.3 Lakh crore
(6.2% of total loans)
3. Total Stressed Assets = (1+2)
Rs 7.4 Lakh crore
(10.6% of total loans)
Experts estimate stressed assets may further
increase by the end of March 2016.
(These are approx. figures)
WHAT IS SDR?
SDR is Strategic Debt Restructuring
Banks can take control of a company, if the company fails to meet specific guidelines under Corporate Debt Restructuring (CDR)
OTHER GUIDELINES
Banks can convert Debt into Equity under SDR
 Banks, as majority shareholders, can find professionals to run the company.
 Then, they can divest stake in order to recover their dues.
 Before loan account turns NPA, banks to identify stress signs and set up JLF (Joint Lenders Forum) to draw up Corrective Action Plan
(CAP). Decision to invoke SDR is to be taken within 30 days.
 Subsequently, SDR conversion package to be finalised in 90 days.
 Conversion of Debt to Equity is to be completed within 90 days of date of approval of SDR conversion package.
TIMELINE OF SDR
,,
Review of the restructured loan
account as and when stress signs
appear
30 days (Maxm.)
Setting up JLF, to look into corrective
action
Decision to invoke
SDR, if corrective action fails
90 days (Maxm.)
Finalisation of SDR conversion
package
• The conversion of Debt to Equity should be
at a fair value
• As banks will get control of the company, it
will prevent diversion of funds and may turn
around the company due to proficient
management.
90 days (Maxm.)
Completion of conversion of
Debt in to Equity
AROUND THE WORLD
G-7 SUMMIT IN GERMANY
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Main focus is on “Russian Aggression” against Ukraine. Leaders felt economic sanctions on Russia must stay
West accuses Russia of sending military to Eastern Ukraine, but Russia denies these allegations.
Greek crisis was also the central part of the discussion.
• The annual summit of the world’s
The other items discussed were
richest leaders took place in Bavarian
• Climate change
Alps, Germany.
• Countering extremism
• G7 grouping consists of USA, UK,
 Called for transformation of electricity generation towards renewables and nuclear by 2050.
Germany, France, Japan, Canada and
 End of burning of fossil fuels by 2100.
Italy
• Russia was excluded from What was
previously known as G8
RULING PARTY, AKP LOSES MAJORITY IN TURKEY... A BLOW FOR PRESIDENT RECEP TAYYIP ERDOGAN
 Ruling party AKP (Justice and Development Party) founded by Turkish President TayyipErdogan failed to win outright majority in
Parliamentary elections for the first time
Country
Turkey
Capital
Ankara
 It got 41% of votes
Currency
Turkish lira
 It got 49.8% in 2011 elections
 Pro-Kurdish People’s Democratic Party (HDP) entered Parliament for the first time by crossing
the threshold of 10% votes.
 Turkey has got proportional representation system.
 Erdogan became the PM in 2003 and the president in 2014.
 He want to change the Constitution in order to make it a “Presidential Republic” with more powers but the election results is a big blow.
ZIMBABWE PHASES OUT ZIMBABWEAN DOLLAR
 Zimbabwean Central Bank is phasing out its massively inflated currency
 Hyper inflation in 2008, resulted in the loss of value for Zimbabwean Dollar
 Hyper inflation increased billions of percent in 2008
 It stopped printing currency from 2009
 US Dollars are already in unofficial use in this country
 Now Zimbabwean Dollar is being phased out completely at 1 US $ = 35 x 10 15Zimb. Dollars
 By September 2015, it wants to phase out Zim. Dollar
Country
Zimbabwe
Capital
Harare
Currency
United States Dollar
(many other currencies are
also under use unofficially. )
ZIMBABWE PHASES OUT ZIMBABWEAN DOLLAR
 Zimbabwean Central Bank is phasing out its massively inflated currency
1 US $ = 35 quadrillion Zimbabwean Dollars
 Hyper inflation in 2008, resulted in the loss of value for Zimbabwean Dollar
or
 Hyper inflation increased billions of percent in 2008
1 US $ = 35x1015 Zimbabwean Dollars
 It stopped printing currency from 2009
 US Dollars are already in unofficial use in this country
 Now Zimbabwean Dollar is being phased out completely at 1 US $ = 35 x 10 15Zimb. Dollars
 By September 2015, it wants to phase out Zim. Dollar
HSBC PLANS TO CUT 50,000 JOBS & SLASH $ 5 BN IN COSTS
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Plans to cut global headcount by 50,000.
It plans to abandon London as its headquarters, may move to Asia.
It also plans to withdraw from Brazil and Turkey.
Intends to reduce $ 5 billion in annual costs within 2 years.
It is making significant changes in its business portfolio.
Around 7000 to 8000 job cuts in Britain.
• HSBC is based in London
• This year marks its 150th anniversary.
• Recently, accused of aiding tax avoidance at
its Swiss subsidiary.
• It has around 2,66,000 employees.
• It has approx. 32,000 employees in India
This will have wider ramifications in the world’s financial market
HACKING OF FEDERAL GOVT COMPUTERS AND THE RECORD OF FOUR MILLION EMPLOYEES
US ACCUSES CHINA FOR HACKING
 The records of four million Federal Govt. employees (both present and former) were hacked
 US accused China for hacking and China denied the allegations.
 The stolen data includes
President Barack Obama has
 Sensitive data from current and former employees
frequently raised China’s
 Security clearances and background checks dating back to 1985.
activities in cyberspace as
 Social security numbers
major cause of concern.
 Performance reviews and testing
 Birthdays, addresses, bank information and other personal data.
MISCELLANEOUS
NEK CHAND … CREATOR OF ICONIC ROCK GARDEN IS NO MORE
 Nek Chand, amazed people with unique sculptures made from waste
 He built his magical kingdom, first by clearing a little forest patch near Sukhna lake
 He used wastes like
 Broken Crockery
 Electrical Fittings
 Bathroom tiles
 Broken wash basins
 Bicycle frames
 With recycling of these materials, he created sculptures of men, women, animals and gods
 The iconic rock garden was inaugurated in 1976 and spreads over 40 acres
 More than 2.5 lakh people from India and abroad visit every year
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Died at 90
Born at Shakargarh (now in Pakistan)
Settled in Punjab after partition
Joined as PWD roads inspector in
Punjab
• He was awarded Padma Shri in 1984
• The garden is maintained by Nek
Chand Foundation
TERROR ATTACK AT ANCIENT EGYPT TEMPLE KARNAK, NEAR LUXOR
 A suicide bomber blew himself up just steps away from the Karnak temple in Luxor
 Two more suspected Islamic militants killed in the firing
KARNAK TEMPLE
 It is the second largest ancient religious site in the world
 First one is the Angkor Wat complex in Cambodia
 Built over a period of 2000 years (2055 BC to around 100 AD)
 It is dedicated to the Theban triad of Amun, Mut and Khonsu
Country
EGYPT
Capital
Cairo
Currency
Egyptian Pound
SOUTH KOREAN ROBOTICS TEAM WINS THE DARPA ROBOTICS CHALLENGE
 Team Kaist’s DRC-Hubo Humanoid Robot defeated 22 others to win the top $ 2 m prize.
 This is conducted by the US Department of Defence’s Darpa research unit.
 The test involves to complete several tasks in one hour like
• Driving a car
• Walking up steps
• Getting out of car
• Opening a door
• Drilling a hole in the wall
• Crossing rubble etc.
 Team Kaist completed all these activities in 44 minutes and 28 seconds.