GYANM GENERAL AWARENESS APRIL 2015 ISSUE

GENERAL AWARENESS – APRIL 2015 1
Cricket
World Cup
The ICC Cricket World Cup is the international championship
of One Day International (ODI) cricket. The event is organised by
the sports governing body, the International Cricket Council (ICC),
with preliminary qualification rounds leading up to a finals
tournament held every four years. The tournament is one of the
world's most viewed sporting events and is considered the "flagship
event of the international cricket calendar" by the ICC.
The first World Cup was organised in England in June
1975, with the first ODI cricket match having been played only
four years prior. However, a separate Women's Cricket World
Cup had been held two years before the first men's tournament, and
a tournament involving multiple international teams had been held
as early as 1912, when a triangular tournament of Test
matches was played between Australia, England and South Africa.
Each of the first three World Cups were held in England. From
the 1987 tournament onwards, hosting has been shared between
countries under an unofficial rotation system, with fourteen ICC
members having hosted at least one match in the tournament.
The finals of the World Cup are contested by the ten full
members of the ICC (all of which are Test-playing teams) and a
number of teams made up from associate and affiliate members of
the ICC, selected via the World Cricket League and a later
qualifying tournament. A total of 19 teams have competed in the
ten editions of the tournament, with 14 competing in the 2011
tournament. Australia has won the tournament four times, with
the West Indies, India (twice each), Pakistan and Sri Lanka (once
each) also having won the tournament. The best performance by a
non-full-member team came when Kenya made the semi-finals of
the 2003 tournament.
ICC WORLD CUP FINALS AT GLANCE
Year Host Nation Winner Runner-up
1975 England West Indies Australia
1979 England West Indies England
1983 England India West Indies
1987 Ind & Pak Australia England
1992 Aus & NZ Pakistan England
1996 Ind, Pak & SL Sri Lanka Australia
1999 England Australia Pakistan
2003 South Africa Australia India
2007 West Indies Australia Sri Lanka
2011 Ind,SL & Ban India Sri Lanka
2015 Aus & NZ Going on Going on
SOME FACTS & FIGURES
1) The West Indies have made the World Cup finals thrice on the
trot. They had won the first two editions in 1975 and 1979
but lost to India in 1983. But the Caribbeans never reached
the finals of the tournament ever again. In 1996, they came
very close but lost unbelievably to Australia.
2) England are the only team who have lost in three World Cups
in three decades, i.e., 1975, 1987 and 1992. Graham Gooch is
the only player to have featured in all the three finals and
ended in the losing side.
3) India are the only Asian side to have won the quadrennial
tournament twice (in 1983 and 2011). Pakistan (1992) and
Sri Lanka (1996) have won it once each.
4) Melbourne will become the second ground to host more than
one World Cup finals. Only Lord's have hosted more
number of finals (4).
5) India's Sachin Tendulkar has scored the most number of runs
in the World Cup (2,278 runs) and also the most number of
centuries (six). Tendulkar ended as the highest run-getter in
two editions of the World Cup (1996 and 2003).
6) Australia's Glenn McGrath has taken most wickets in the
World Cup (71 in 39 matches). McGrath also has the best
bowling figures of 7-15 which he had registered against
Namibia in 2003.
7) South Africa's Gary Kirsten has the highest individual score
in a World Cup match, scoring an unbeaten 188 against
debutants UAE in 1996.
8) Australia had remained unbeaten in the World Cup for 12
years, which is a record. After the 10-run loss to Pakistan in a
group match in the 1999 edition, the Aussies lost again in the
World Cup in 2011 when they lost to same Pakistan in a
group match by 4 wickets.
9) In the 1996 World Cup, eventual champions Sri Lanka had
received two walkovers in the group stage, against Australia
and the West Indies. At one stage, the Lankans got 6 points
by playing just 1 game!
10) Zimbabwe shocked the cricketing world when they beat a
strong Australian side by 13 runs in their debut match in the
World Cup in 1983.
 Pg 4

MORE POWER TO STATES
The constitution of India gives primacy to the Union in the matter of overall revenue generation. The states have
always complained that while the responsibility of providing all public amenities rests with them, the avenues to raise
their income as the major resources are in the list reserved for the Centre.
In the Indian federal structure, obligations for various services like law and order, health education are unequally
shared between Centre and the States. The Centre retained the power to decide and allocate the funds to the different
states which led to charges of favouritism or discrimination based on one’s opinion and share of resources.
It is not that the makers of the constitution did not think of such a scenario and as such inserted the provision of an
independent Finance Commission (vide Article 280) to decide the division of taxes between the Centre and the States for
a period of five years. This commission is set up every five years to recommend how revenues from Central taxes should
be shared between the Centre and the states. This allocation is necessary in a diverse country like India to make sure that
the people get all the public facilities, whether they are living in rich or a poor state. The successive Commissions have
been remit in increasing the share of states in the divisible pool of taxes, though in small doses, leaving a large discretion
with the government at the centre. Still, with the centre holding the power to the purse, the Chief Ministers were treated
as beggars in the corridors of the North Block. The Central Ministers would devise one fit all schemes for which the
allocation was not decided by the Finance Commission but by the Minister/ Planning Commission through grants or
Centrally Sponsored Schemes, leaving no elbow room for the states to devise schemes to suit their specific needs. All this
is set to change.
The FFC (Fourteenth Finance Commission) headed by Dr. Y.V. Reddy has made radical proposals which may
redefine the Indian Federal Structure in a more desirable manner. The Commission has increased the amount of from the
divisible pool of taxes from 32% to 42%, the biggest jump seen so far. (The previous F.C.s had increased the same by 1 or
1.5% only.) This marks a big departure as it will give the states a great leeway in deciding their own schemes. The
recommendations are based on the premise that the states can be trusted to settle their own priorities and so should be
given more fiscal space in this regard. It places a heavy responsibility on the states to design, formulate and implement
and monitor their own plans without the big brother ( Centre) looking over their shoulder, leading to greater federalism
by conferring more fiscal autonomy on the states.
RE–WRITING THE HISTORY
The year 1977 was a watershed year in the history of Independent India’s political scenario when for the first time
India had a non-congress government marking the emergence an alternative to the unchallenged established one party
rule. The transition was unexpectedly smooth.
The government led by a strong Prime Minister having imposed emergency and made changes to the constitution
to suit its convenience, wanted to seek legitimacy to its rule by seeking a fresh mandate from public.
If it expected that the fractured political parties will not be able to pose any challenge to its monopoly over power,
it was soon deluded. The desperate opposition parties got together and came to power with a majority that, no one had
expected. It is another matter that they could not retain the power for long and frittered away in a span of just two years
the historical mandate they had received.
However, it must not be lost that an alternative emerged, which was a coalition of different regional groups, and
this arrangement ruled the nation for next around thirty five years in one form or the other except for the period 1984-
1988.
In the similar vein, the year 2015 will go down in the political history as challenge to the established political
system and emergence of an alternative that none could have imagined or foreseen. A political party led by a social
activist which emerged just two years ago on the horizon, decimated all the established political behemoths and
compelled them to bite the dust in the electoral battle of Delhi.
While the party which had won all the parliamentary seats in the just concluded elections fared very badly, the
party which was in power for the last fifteen years was packed off with a big Zero. The political pundits were left
speechless and the established parties were exposed to be rootless.
The emergence of this small party in a small area represents a big leap in Indian political scenario where elections
are considered to be the ‘pocket borough’ of moneybags and democracy has often been called a system of the rich, for the
rich in the name of the poor.
It has made some political leaders to go on sabbatical and others to vacation. And those who are serious will have
to reflect what has gone wrong or we may say 'right'.
People voted with their foot down and have a given a clarion call to the established system that they cannot be
taken to be granted. Perform or Perish is the message loud and clear, given by the masses.
The message is too loud for those who lead and govern to ignore it at their own peril.

GENERAL AWARENESS
APRIL 2015
Vol. 3, Issue 10
A PUBLICATION OF GYANM EDUCATION &
TRAINING INSTITUTE PVT. LTD.
SCO 13-14-15, 2ND FLOOR, SEC 34-A, CHANDIGARH
Contents
BUDGET 2015-16 03-08
CURRENT AFFAIRS
DEC 2014 TO FEB 2015
09-40
BULLET NEWS
SEP TO NOV 2014
41-54
IBPS PO TEST PAPER 55-70
SSC MODEL TEST PAPER 71-81
6 MONTHS GK BULLETS 82-99
FIGURES TO REMEMBER
REPO RATE (15.1.2015) 7.75%
REVERSE REPO RATE 6.75%
MARGINAL STANDING
FACILITY RATE
8.75%
STATUTORY LIQUIDITY RATIO 21.5%
CASH RESERVE RATIO 4.00%
BANK RATE 8.75%
BASE RATE(s)
(of various banks)
10 to
10.25 %
INDIA’S RANK IN
Press Freedom Index 2015 136th
Talent Competitiveness 78th
Travel and Tourism Index 65th
Corruption Perceptions Index 85th
The Web Index 2014 48th
Global Terrorism Index 2014 6th
Global Slavery Index 2014 1st
Gender Gap Index 114th
Ease of Doing Business (World
Bank)
142nd
Global Hunger Index 2013 55th
Global Competitiveness 71st
Human Development Index 135th
Global Innovation Index 76th
Economic Confidence Index 01st
Choice for FDI 143rd
Social Progress Index 102nd
World Press Freedom Index 140th
Environment Performance Index 155th
BUDGET HIGHLIGHTS
ECONOMIC SURVEY
RAILWAY BUDGET

UNION BUDGET 2015 – 16
HIGHLIGHTS
Union Budget is an annual exercise that is undertaken as
per the provisions of article 112 of the Indian
constitution. Passing of budget authorizes the
government to withdraw the funds from the
Consolidated Fund of India.
Following are the highlights of the budget for 2015-16:
 GDP growth in 2015-16 projected to be between 8 to
8.5%
 Amrut Mahotsav - The year 2022, 75th year of
Independence Vision for “Team India” led by PM
 Housing for all - 2 crore houses in Urban areas and 4
crore houses in Rural areas.
 Basic facility of 24x7 power, clean drinking water,
toilets and road connectivity to all villages
 Electrification of the remaining 20,000 villages
including off-grid Solar Power- by 2020.
 Providing medical services in each village and city.
 Ensure a Senior Secondary School within 5 km reach
of every child,
 Direct Transfer of Benefits to be extended further
with a view to increase the number of beneficiaries
from 1 crore to 10.30 crore.
AGRICULTURE
 Major steps take to address the two major factors
critical to agricultural production, that of soil and
water.
 ‘Paramparagat Krishi Vikas Yojana’ to be fully
supported.
 ‘Pradhanmantri Gram Sinchai Yojana’ to provide
‘Per Drop More Crop’.
 Rs 5,300 crore to support micro-irrigation, watershed
development and the ‘Pradhan Mantri Krishi Sinchai
Yojana’.
 Target of Rs. 8.5 lakh crore of agricultural credit
(through banks) during the year 2015-16.
FUNDING THE UNFUNDED
 Micro Units Development Refinance Agency
(MUDRA) Bank, with a corpus of Rs. 20,000 crores,
and credit guarantee corpus of Rs 3,000 crores to be
created.
 MUDRA Bank will be responsible for refinancing all
Micro-finance Institutions which are in the business of
lending to such small entities of business through a
Pradhan Mantri Mudra Yojana.
 A Trade Receivables discounting System (TReDS)
which will be an electronic platform for facilitating
financing of trade receivables of MSMEs to be
established.
 Comprehensive Bankruptcy Code of global standards
to be brought in fiscal 2015-16 towards ease of doing
business.
 Postal network with 1,54,000 points of presence
spread across villages to be used for increasing access
of the people to the formal financial system.
 NBFCs registered with RBI and having asset size of Rs
500 crore and above may be considered for
notifications as ‘Financial Institution’ in terms of the
SARFAESI Act, 2002.
FROM JAN DHAN TO JAN SURAKSHA
 Pradhan Mantri Suraksha Bima Yojna to cover
accidental death risk of Rs 2 Lakh for a premium of
just 12 per year.
 Atal Pension Yojana to provide a defined pension,
depending on the contribution and the period of
contribution. Government to contribute 50% of the
beneficiaries’ premium limited to Rs 1,000 each year,
for five years, in the new accounts opened before 31st
December 2015.
 Pradhan Mantri Jeevan Jyoti Bima Yojana to cover
both natural and accidental death risk of Rs 2 lakh at
premium of Rs 330 per year for the age group of
18-50.
 A new scheme for providing Physical Aids and
Assisted Living Devices for senior citizens, living
below the poeverty line.
 Unclaimed deposits of about Rs 3,000 crores in the
PPF, and approximately Rs 6,000 crores in the EPF
corpus to be used for creating a fund which will be
used to subsidize the premiums on these social
security schemes through creation of a Senior Citizen
Welfare Fund.
INFRASTRUCTURE
 National Investment and Infrastructure Fund (NIIF),
to be established with an annual flow of Rs 20,000
crores.
 Tax free infrastructure bonds to be issued for the
projects in the rail, road and irrigation sectors.
 Atal Innovation Mission (AIM) to be established in
NITI to provide Innovation Promotion Platform
involving academicians, and drawing upon national
and international experiences to foster a culture of
innovation , research and development.
 Self-Employment and Talent Utilization - SETU to
be established as Techno-financial, incubation and
facilitation programme to support all aspects of start-
up business. Rs1000 crore to be set aside for this.
 5 new Ultra Mega Power Projects, each of 4000 MW,
to be started in the Plug-and-Play mode.

FINANCIAL MARKET
 Public Debt Management Agency (PDMA) bringing
both external and domestic borrowings under one
roof to be set up this year.
 Forward Markets commission to be merged with SEBI.
 Sovereign Gold Bond, as an alternative to purchasing
metal gold scheme to be developed.
 Indian gold coins to be made for investment in gold.
 A student Financial Aid Authority to be formed to
administer all scholarships as well Educational Loan
Schemes, through the Pradhan Mantri Vidya
Lakshmi Karyakram.
 A post graduate institute of Horticulture Research &
Education is to be set up in Amritsar
 An autonomous Bank Board Bureau to be set up to
improve the governance of public sector bank.
BUDGET ESTIMATES
 Total Expenditure estimated at Rs 17,77,477 crore.
 Fiscal deficit will be 3.9 per cent of GDP and Revenue
Deficit will be 2.8 per cent of GDP.
BLACK MONEY
 Acceptance or re-payment of an advance of Rs 20,000
or more in cash for purchase of immovable property
to be prohibited.
 PAN being made mandatory for any purchase or sale
exceeding Rupees 1 lakh.
 General Anti Avoidance Rule (GAAR) to be deferred by
two years, to be applicable from 01.04.2017.
 Wealth-tax replaced with additional surcharge of 2
per cent on super rich with a taxable income of over
Rs 1 crore annually
 Service-tax plus education cess increased from
12.36% to 14% to facilitate transition to GST.
SWACHH BHARAT
 100% deduction for contributions, other than by way
of CSR contribution, to Swachh Bharat Kosh and Clean
Ganga Fund.
 Clean energy cess increased from Rs 100 to Rs 200
per metric tonne of coal, to finance clean environment
initiatives.
BENEFITS TO MIDDLE CLASS TAX-PAYERS
 Limit of deduction of health insurance premium
increased from Rs 15000 to Rs 25000, for senior
citizens limit increased from Rs 20000 to Rs 30000.
 Senior citizens above the age of 80 years, who are not
covered by health insurance, to be allowed deduction
of Rs 30000 towards medical expenditures.
 Deduction limit of Rs 60000 with respect to specified
decease of serious nature enhanced to ` 80000 in case
of senior citizen.
 Additional deduction of Rs 25000 allowed for
differently abled persons.
 Limit on deduction on account of contribution to a
pension fund and the new pension scheme increased
from Rs 1 lakh to Rs 1.5 lakh.
 Additional deduction of Rs 50000 for contribution to
the new pension scheme u/s 80CCD.
 Payments to the beneficiaries including interest
payment on deposit in Sukanya Samriddhi scheme to
be fully exempt from income tax.
MAJOR BUDGETARY ALLOCATIONS
Defence 2,46,727
Subsidies of which
Food Subsidy – 1,24,419 cr
Petroleum Subsidy – 30,000 cr
Fertilizer Subsidy – 72,968 cr
2,27,387
Mahatma Gandhi National Rural
Employment Guarantee Scheme
34699
National Livelihood Mission (Rural &
Urban)
3343
Housing for all (Rural and Urban)- 14200
Pradhan Mantri Gram Sadak Yojana 14291
National Social Assistance Programme 9074
Swachh Bharat 6000
Pradhan Mantri Krishi Sinchai Yojana 5300
Krishonnati Yojana, incl. Rs. 4500cr for
Rashtriya Krishi Vikas Yojana 12257
Micro, Small And Medium Enterprises 1350
Sarva Shiksha Abhiyan 22000
Higher Education 11965
Women And Child Development 9694
Information Technology 2510
Telecommunications 4800
National Health Mission 18000
Urban Development 14585
Road Transport & Highways 40003
Deen Dayal Upadhyay Gram
JyotiYojana
4500
Science and technology 3550
Namami Gange for cleaning of the Holy
Ganga
2100
For recapitalisation of Public Sector
Banks (Rs 7940cr)and other DFIs
9790
GOVT HOUSE KEEPING (In %)
Rupee Comes From Rupee Goes To
Borrowings 24 Central Plan Outlay 11
Corporate Tax 20 Plan Asst. to State / UTs 08
Income Tax 14
Non Plan Asst.
State/UTs
05
Custom Duty 09 Other-Plan Expenditure 12
Excise Duty 10 States Share of Taxes 23
Service Tax 09 Interest Payments 20
Non-Tax
Revenue
11 Defence 11
Non Debt Capital
Receipts
03 Subsidies 10
Total 100 Total 100

KEY BUDGET FIGURES – 2015-16
BUDGET HEAD Rs in Cr
1 Revenue Receipts (2+3) 1141575
2 Tax Revenue (net to centre) 919842
3 Non-Tax Revenue 221733
4 Capital Receipts (5+6+7) 635902
5 Recoveries of Loans 10753
6 Other Receipts 69500
7 Borrowings and other
liabilities
555649
8 Total Receipts (1+4) 1777477
9 Non-Plan Expenditure (10+12) 1312200
10 On Revenue Account - of
which,
1206027
11 Interest Payments 456145
12 On Capital Account 106173
13 Plan Expenditure (14+15) 465277
14 On Revenue Account 330020
15 On Capital Account 135257
16 Total Expenditure
(9+13)(Budget Size)
1777477
17 Revenue Expenditure
(10+14)
1536047
18 Of Which, Grants for
creation of Capital Assets
110551
19 Capital Expenditure
(12+15)
241430
20 Revenue Deficit (17-1) 2.8% of
GDP
394472
21 Effective Revenue Deficit (20-18)
2% of GDP
283921
22 Fiscal Deficit {16-(1+5+6)}
3.9% of GDP*
555649
23 Primary Deficit (22-11) 0.7% of
GDP*
99504
*GDP for 2015-16 has been projected at Rs. 141. 09 trillion cr.
GDP growth rate for 2015-16 is projected at 8 to 8.5%
RAILWAY BUDGET 2015-16
HIGHLIGHTS
 No new trains announced
 No increase in passenger fare
FINANCE
 No increase in passenger fares
 Plan outlay of Rs 1,00,011 crore, up by 52 %
 Rs 8.5 lakh crore to be invested in next 5 years
 Rs.96,000 crore for 77 new projects
 Rs 6,581 crore for rail safety
 Will set up infra funds for railways
 Plan to invite corporate sponsorship for stations
UPGRADES/NEW SERVICES
 New ‘Bullet-like’ trains to run on existing tracks
 Increase in track capacity by 10% to 1.38 lakh km
 Delhi-Kolkata and Delhi Mumbai to be overnight
journey
 6,000 km to be electrified in 2015-16
 Speed on 9 corridors to be increased to between 160-
200 km
 High speed bullet train between Mumbai and
Ahmadabad
 Direct line from Delhi to Arunachal Pradesh
PASSENGER CONVENIENCE
 All India helpline No. 138 from March 1
 No 182 helpline for women security
 Cameras in the women compartments in select trains
 Rs 1,000 Nirbhaya Fund, which was lying idle so far,
to be used to provide women's safety
 Multi-lingual online ticketing
 Ticket booking timing increased to 120 days
 Operation 5 minutes to ensure that a passenger
travelling unreserved can purchase a ticket within 5
minutes
 Lower berth preference for senior citizens, pregnant
women and differently abled
 Cleanliness in Railways highest priority under Swachh
Rail Swachh Bharat
 Food can be ordered online while booking ticket
 E-catering introduced on over 100 trains
 400 stations to get Wi-Fi facility
 SMS alert service for train arrival / departure timings
 Mobile App to address passenger complaints
 Lockers at all stations
 Innovation Council and Technology Portal will be set
up to invite suggestions on improvements
GREEN INITIATIVES
 17, 000 toilets to be replaced by bio toilets
 Will move towards paperless ticketing
 To introduce vacuum toilets in trains
 Disposable linen and garbage bags at all stations
ECONOMIC SURVEY 2014-15
Finance Minister Arun Jaitley presented the Economic
Survey in Parliament. The survey was prepared by the
Finance Ministry's Chief Economic Adviser Arvind
Subramanian. Given below are the Highlights:
GROWTH
 FY 2014-15 GDP growth seen at 7.4%
 2015-16 GDP growth seen at over 8 to 8.5 per cent
 Manufacturing and services sector equally important
for growth of economy
 Food grain production for 2014-15 estimated at
257.07 million tonnes
 Need for creation of National Common Market in
agricultural commodities

FISCAL DEFICIT
 Fiscal, revenue and primary deficits show a declining
trend
 India must meet its medium-term fiscal deficit target
of 3 percent of GDP
 Government will adhere to fiscal deficit target of 4.1
percent of GDP in 2014-15
INFLATION
 Inflation down by 6% since 2013 and likely to be
below RBI’s target by 0.5 - 1 percentage point
 Consumer inflation in 2015-16 likely to range
between 5 to 5.5 percent
CURRENT ACCOUNT DEFICIT
 Estimated at about 1.3 percent of GDP in 2014-15
and less than 1.0 percent of GDP in 2015-16
SUBSIDIES
 Rationalisation of subsidies, better targeting of
beneficiaries will release funds for public investment
in agriculture
 Govt to discontinue support to 8 centrally sponsored
schemes
 Govt aims at converting all subsidies into direct
benefit transfers
 Post Office can be linked with AADHAR based benefits
transfer architecture to allow linkage to AADHAR
accounts
BUDGET GLOSSARY
APPROPRIATION BILL
It is presented to Parliament for its approval, so that the
government can withdraw from the Consolidated Fund
the amounts required for meeting the expenditure
charged on the Consolidated Fund. No amount can be
withdrawn from the Consolidated Fund till the
Appropriation Bill is voted is enacted.
CAPITAL BUDGET
It consists of capital receipts and payments. It also
incorporates transactions in the Public Account. It has
two components: Capital Receipt and Capital
Expenditure.
CAPITAL EXPENDITURE
It consists of payments for acquisition of assets like
land, buildings, machinery, equipment, as also
investments in shares etc, and loans and advances
granted by the Central government to state and union
territory governments, government companies,
corporations and other parties.
CAPITAL RECEIPTS
The main items of capital receipts are loans raised by
the government from public which are called market
loans, borrowings by the government from the Reserve
Bank of India and other parties through sale of Treasury
Bills, loans received from foreign governments and
bodies and recoveries of loans granted by the Central
government to state and union territory governments
and other parties. It also includes proceeds from
disinvestment of government equity in public
enterprises.
CENTRAL PLAN
It consists of the government’s budget support to the
Plan and the internal and extra budgetary resources
raised by public enterprises.
CONSOLIDATED FUND
It is made up of all revenues received by the
government, loans raised by it, and also its receipts from
recoveries of loans granted by it. All expenditure of the
government is incurred from the Consolidated Fund and
no amount can be withdrawn from the Fund without
authorisation from Parliament.
CONTINGENCY FUND
It is an amount Rs 500 crore placed at the disposal of the
President and is used by the government to incur all its
urgent and unforeseen expenditure. Parliamentary
approval for such expenditure and for withdrawal of an
equivalent amount from the Consolidated Fund is
subsequently obtained and the amount spent from the
Contingency Fund is recouped to the Fund.
EXPENDITURE BUDGET
It contains expenditure estimates made for a scheme or
programme under both revenue and capital heads.
These estimates are brought together and shown on a
net basis at one place by major heads.
FINANCE BILL
This contains the government’s proposals for levy of
new taxes, modification of the existing tax structure or
continuance of the existing tax structure beyond the
period approved by Parliament. It is submitted to
Parliament along with the Budget for its approval.
FISCAL CONSOLIDATION
A policy aimed at reducing government deficits and debt
accumulation.
FISCAL DEFICIT
It is the difference between the revenue receipts plus
certain non-debt capital receipts and the total
expenditure including loans (net of repayments). This
indicates the total borrowing requirements of the
government from all sources.

FISCAL POLICY
The policy that decides the terms of government
expenditure and revenue collection (taxation) to ensure
best possible growth of the economy. It is the policy for
deciding the shape of govt budget.
FRBM ACT, 2003
The Fiscal Responsibility and Budget Management Act
was enacted by Parliament in 2003 to bring in fiscal
discipline in the govt expenditure. The FRBM Rules
impose limits on fiscal and revenue deficit. In the long
run, the fiscal deficit is required to be reduced to 3% of
the GDP.
GOVERNMENT BORROWING
The money government borrows to fund public
spending. It is the total amount of money that the
country's Government has borrowed to fund its
spending on public services and benefits.
NON-PLAN EXPENDITURE
It includes both revenue and capital expenditure on
interest payments, the entire defence expenditure (both
revenue and capital expenditure), subsidies, postal
deficit, police, pensions, and economic services, loans to
public enterprises and loans as well as grants to state
governments, union territory governments and foreign
governments.
NON-TAX REVENUES
Interest from loans to states, public bodies and PSUs is a
key item under this head. So are dividends from PSUs.
The government also earns income from the services it
provides. Though the Railways is a separate ministry, all
its money is routed through the consolidated fund.
PLAN EXPENDITURE
This is largely made up of the budget support to the
central plan. It also comprises the amount the Centre
sets aside for plans of states & Union territories. Like all
budget heads, this is also split into revenue and capital
components.
PRIMARY DEFICIT
If we deduct amount of interest payments from the
amount of fiscal deficit, we get the amount of Primary
Deficit.
PUBLIC DEBT
The government's borrowings are the burden of the
people. The difference between borrowings and
repayments is the net accretion to the public
debt. Public debt can be split into two heads, internal
debt and external debt. The internal debt comprises
Treasury Bills, market stabilisation scheme, ways and
means advances, and securities against small savings.
PUBLIC ACCOUNT
It is an account in which money received through
transactions not relating to the Consolidated Fund is
kept. For example, transactions relating to provident
funds, small savings collections, other deposits etc.
Public Account funds do not belong to the government
and have to be paid back some time or the other to the
persons and authorities who deposited them.
Parliamentary authorisation for payments from the
Public Account is not required.
REVENUE BUDGET
It consists of the revenue receipts of the government
(which is tax revenues plus other revenues) and the
expenditure met from these revenues. It has two
components: Revenue Receipt and Revenue
Expenditure.
REVENUE EXPENDITURE
It is meant for the normal running of government
departments and various services, interest charges on
debt incurred by the government and subsidies. Broadly
speaking, expenditure which does not result in creation
of assets is treated as revenue expenditure. All grants
given to state governments and other parties are also
treated as revenue expenditure even though some of the
grants may be for creation of assets.
REVENUE RECEIPTS
It includes proceeds of taxes and other duties levied by
the Centre, interest and dividend on investments made
by the government, fees and other receipts for services
rendered by the government.
Excess of revenue expenditure over revenue receipts is
called revenue deficit.
VALUE ADDED TAX (VAT)
It is a form of consumption tax. From the perspective of
the buyer, it is a tax on the purchase price. From that of
the seller, it is a tax only on the "value added" to a
product, material or service, from an accounting point of
view, by this stage of its manufacture or distribution.
The manufacturer remits to the government the
difference between these two amounts, and retains the
rest for themselves to offset the taxes they had
previously paid on the inputs.

NATIONAL NEWS
FEBRUARY 2015
GOVT ACCEPTS FINANCE COMMISSION REPORT
Union Government has accepted the recommendations
of the 14th Finance Commission for devolution of
revenue collection from the Center to the states for the
period from 1 April 2015 to 31 March 2020. The
commission was headed by Ex. RBI Governor Y V Reddy.
DIPLOMATS’ CONFERENCE IN NEW DELHI
A three day Heads of the Missions Conference was held
in New Delhi from Feb 7 to 9 in New Delhi. About 110
ambassodors/diplomats from various Indian embassies
took part in the conference that spelt the ways in which
the diplomats can contribute to the country's
development.
AERO INDIA SHOW HELD AT BENGALURU
The 10th edition of Aero India Show concluded in
Bengaluru. The show was focused on Make in India
campaign of the Union Government which is aimed at
encouraging small and medium industries to invest in
defence manufacturing in India.
INDIA SET TO JOIN BRICS BANK
The Union Cabinet approved India’s plans for the
establishment of a New Development Bank led by the
BRICS bloc of developing nations, and a Contingent
Reserve Arrangement (CRA) that will act as an extra
safety net in the event of financial crisis.
AIRTEL TO SERVE CHILDREN IN AFRICA
Indian telecom major Bharti Airtel Limited on 18
February 2015 tied-up with United Nations Children’s
Fund (UNICEF) to provide health, education and youth-
focused content to its customers in 17 African countries.
S C RULES ON CRIMINAL CANDIDATES
In a historic judgment, the Supreme Court has ruled that
the suppression of criminal antecedents, especially
relating to heinous crimes, by an election candidate
during nomination deprives voters to make an informed
choice and creates impediments in the free exercise of
electoral right and therefore, if such a candidate wins
the election, his election should be declared null and
void (invalid).
FENCED ELEPHANT SANCTUARY BY PETA
The People for the Ethical Treatment of Animals (PETA)
has announced to create India's first fenced elephant
sanctuary within the Bannerghatta Biological Park in
Karnataka. The forested space will allow elephants to
move around freely within the secure area.
Ms. SWARAJ VISITS CHINA
External Affairs Minister Sushma Swaraj went to China
on a four day official visit. She met the Chinese
President Xi Jinping also. The visit focused on resolving
the tensions on border issue. She also launched the Visit
India Year in China at a function in Beijing.
INDIA FARES POOR IN PRESS FREEDOM
India has been ranked 136TH in terms of press freedom
in 2015, out of 180 nations in the World Press Freedom
Index produced by Reporters without Borders.
Countries are ranked on the basis of media pluralism
and independence, respect for the safety and freedom of
journalists and the legislative, institutional and
infrastructural environment in which the media
operates. Finland, Norway and Denmark were on the
top of the list.
 Rajya Sabha was informed that 76.83 crore Aadhaar
cards have been generated till 15 February 2015 out
of a total population of 121.01 crore
 Dr. Tony Tan Keng Yam, President of Singapore
visited India on Feb. 10 and inaugurated the
Singapore Festival in New Delhi.
 18th National Conference on e-Governance held in
Gandhinagar, Gujarat from 30 to 31 January 2015.

 Three Commemorative Postage stamps on the theme
of Swachh Bharat Mission were released on 30
January 2015 to mark the Martyrdom Day of
Mahatma Gandhi.
 The first National Tribal Festival “VANAJ”-2015 held
at New Delhi from 13 to 18 Feb., 2015.
 India and Sri Lanka have agreed to explore avenues
for enhancing cooperation in oil and gas sector.
JANUARY 2015
OBAMA CHARMS INDIA
Barrack Obama became the first U.S. President to be the
Chief Guest at the Republic Day and the first U.S.
President to visit India twice during his tenure.
 The two leaders agreed to operationalise the civil
nuclear deal, resolving the key hurdles pertaining to
the liability of suppliers of nuclear reactors in the
event of an accident and the tracking of fuel
supplied by the US.
 Obama announced new initiatives worth $ 4 billion
aimed at boosting trade and investment ties as well
as jobs in India through a new Indian Diaspora
Investment Initiative.
 For the first time in the history of India’s Republic
Day, all-women contingent from the three defence
forces-Army, Air Force and Navy, marched down in
the parade.
 India and the US signed MoUs for formulating action
plans for development of smart cities in Allahabad,
Ajmer and Visakhapatnam.
15 NRIS HONOURED AT PBD
15 persons were conferred with Pravasi Bharatiya
Samman Award including Microsoft CEO Satyanarayan
Nadella and Guyana President Donald Rabindernauth
Ramaotar at the three day Pravasi Bhartiya Diwas, Jan 7
to 9, held at Gandhinagar, Gujarat.
COINS AND STAMPS RELEASED IN PBD
Coins and stamps showing in the
same frame pictures of a young
Mohandas Karamchand Gandhi
and another of his transformation
into Mahatma Gandhi were here
released on Jan 8 at Pravasi
Bhartiya Diwas to commemorate the centenary year of
his return to India from South Africa in 1915. The coins
are in the denomination of Rs 100 and Rs 10, while
stamps are of the value of Rs. 25 & Rs. 5.
TIGERS’ POPULATION UP BY 38.4%
Across India, the mean figure for tiger numbers
increased from 1,706 in 2010 to 2,226 in 2014,
registering an impressive growth of 30.48 per cent. With
406 tigers, Karnataka tops the list, followed by
Uttarakhand – 340 and Madhya Pradesh – 308.
INDIA TO HELP NEPAL FOR FIGHTING GOITRE
India will provide Rs 6.90 crore support to Nepal for
fighting against the Iodine Deficiency Disorder Control
Programme for goitre control across the country. Goitre
is an enlarged thyroid gland found in neck.
ASIA’s BIGGEST LITERARY EVENT AT JAIPUR
ZEE Jaipur Literature Festival, Asia’s biggest literary
event was held at Jaipur from 21st to 25th Jan 2015. Over
2.45 lakh persons took part in the festival. More than
300 authors from over 50 countries attended the
festival.
DSC Prize for Literature: The $50,000 prize won by
Indian-American author Jhumpa Lahiri for her book, The
Lowland.
Poet Arunadhathi Subramaniam was declared as the
winner of inaugural Khushwant Singh Memorial Prize
for poetry for her work “When God is a Traveler”.
H S BRAHMA IS THE NEW CEC
Former bureaucrat Hari
Shankar Brahma has been
appointed as the next Chief
Election Commissioner of
India. The present
incumbent, V S Sampath
turned 65 on Jan 15, the
upper age limit under the
Constitution for holding the
post. Mr. Brahma too is completing 65 years on April 19.
CEC has a tenure of six years, or up to the age of 65
years, whichever is earlier. He is appointed by the
President, on recommendations of the Union Government.
He enjoys the same official status, salary and perks as
available to Judges of the Supreme Court and High court.
NATIONAL YOUTH FESTIVAL AT GUWAHATI
The 19th National Youth Festival began in Guwahati on
Jan 8. The theme this year is, 'Youth for Clean, Green
and Progressive India'. A mascot performing Sattriya
dance and named as Baandhav has been designed for
the festival.
INDIA 78TH IN TERMS OF SKILLED LABOUR
In a list of 93 countries compiled by INSEAD business
school, India has been ranked 78th globally in terms of
talent competitiveness of its human capital, indicating
acute shortage of skilled workforce. Switzerland has
topped the list, followed by Singapore.
SUPREME COURT ENDS SRINI’s GAME
The Supreme Court has barred N Srinivasan, the
controversial businessman and cricket official, from
contesting the Board of Control for Cricket in India
(BCCI) election until he gives up his commercial interest
in the IPL franchise Chennai Super Kings (CSK).

 India will provide 60 million dollars Line of Credit to
Guyana for its road infrastructure projects. Guyana is
a small republic on northern border of Brazil.
 Tshering Tobgay, Prime Minister of Bhutan came to
India on a weeklong visit.
 The 13th Pune International Film Festival has held at
Pune in Maharashtra from January 8 to 15. The
theme of the festival was “War against War".
 102nd Indian Science Congress was held at Mumbai
University, Maharashtra.
 Two commemorative coins of Rs 100 and five were
released in the honour of Tata Group founder
Jamsetji Nusserwanji Tata's to mark his 175th birth
anniversary.
 January 12 is observed as National Youth Day on the
birth anniversary of social reformer, philosopher and
thinker Swami Vivekananda.
 India signed an agreement on transfer of prisoners
who are completing their sentence, with Hong Kong
 Germany has agreed to partner with India in
developing three smart cities. A six-member joint
committee has been set up to identify the cities in
next three months.
 The first Border Haat (market) along Tripura-
Bangladesh frontier was opened at Srinagar
(Tripura) - Purba Madhugram (Feni, Bangladesh).
 Indian Railways to run an additional weekly trip of
Maitree Express train between Kolkata and Dhaka.
DECEMBER 2014
BHARAT RATNA FOR VAJPAYEE AND MALVIYA
Former Prime Minister Atal
Bihari Vajpayee and Late
Pandit Madan Mohan
Malaviya will be honoured
with Bharat Ratna-country's
highest civilian award. The
announcement was made in a
press communique issued by
the Rashtrapati Bhawan on
Dec 24 on the
recommendation of the Prime Minister.
Atal Bihari Vajpayee is an Indian statesman who was
the first Prime Minister from outside Congress to serve
a full five-year term from 1998 to 2004. A
parliamentarian for over four decades, Mr. Vajpayee was
elected to the Lok Sabha nine times, and twice to the
Rajya Sabha. He completed 90 years on 25th December.
He is the seventh Prime Minister to receive the award.
Pandit Madan Mohan Malviya was an Indian
educationist and politician well known for his role in
Indian freedom struggle. He was the President of the
Indian National Congress in 1909 and 1918. He is most
remembered as the founder of Banaras Hindu
University, the largest residential university in Asia. 25
Dec marks his 153rd birthday. He is the 12th person to
be named posthumously for Bharat Ratna.
PUTIN OPENS ECONOMIC DOORS FOR INDIA
Russian President Vladimir Putin arrived in New Delhi
to attend the India-Russia annual summit on Dec 11.
 He addressed the World Diamond Congress held at
Vigyan Bhavan, New Delhi.
 Russian diamond mining giant ALROSA agreed to
supply diamonds worth $2.1 billion in the next three
years to 12 Indian companies.
 Russia's atomic firm Rosatom agreed to supply 12
nuclear energy reactors to India over next 20 years,
 Russian oil major Rosneft signed a 10-year crude
supply deal with India’s Essar Oil.
 The two countries agreed to enhance the bilateral
trade from current $10 billion to $30 billion by 2025.
 The two leaders unveiled the ‘Druzhba (friendship in
Russian)-Dosti' vision to strengthen the bilateral
partnership over the next decade
GANDHINAGAR TO HOST 13TH PBD
13th Pravasi Bharatiya Diwas will be held from 7th to 9th
January at Gandhinagar in Gujarat. It will celebrate 100
years of Mahatama Gandhi's return from South Africa to
India on 9th January, 1914. This year’s theme is ‘Apna
Bharat, Apna Gaurav’.
INDIA 65TH IN WORLD IN TOURISM
World Economic Forum (WEF) released the 2013 Travel
& Tourism Competitiveness Index. The index assesses
140 nations for their efforts made to develop the travel
and tourism sector. India has been placed at 65th
position in the index topped by Switzerland.
INDIA TOPS IN OUTFLOW OF BLACK MONEY
As per the Global Financial Integrity, India figures
among the top three countries that witnessed highest
outflow of black money in 2012 with about $94.76
billion or 6 lakh crore rupees going out of the Country.

INDIA PLACED 85TH IN CORRUPTION INDEX
As per the Corruption
Perceptions Index – 2014
released by the
Transparency International,
India stands at 85th position
among 175 countries,
(scoring 38 marks) as
against 94th last year. India
shares its position with Sri Lanka. Denmark retained its
position as the least corrupt country with a score of 92
while North Korea and Somalia shared the last place,
scoring just eight.
JUNE 21 IS INTERNATIONAL YOGA DAY
On Dec 17, the UN General Assembly (UNGA) adopted a
resolution to declare June 21 as International Yoga Day,
recognising the ancient Indian science's "holistic
approach to health and well-being." Indian Prime
Minister Mr. Modi had made the proposal during his
address to the UNGA on 27th of September this year.
Why June 21? It marks the beginning of summer solstice
in Northern Hemisphere and is the longest day of the year
receiving highest amount of solar energy.
28000 CRORE SUPPORT FOR NORTH EAST
Focusing on improving connectivity to the north-east,
Central govt plans to provide Rs 28,000 crore for laying
new railway lines in the region and develop the
"untapped" tourism potential of the area. Besides, Rs
5000 crore each will be provided for extending 2G
mobile coverage and for improvement of power system
in north-eastern region.
INDIA FARES 48TH ON INTERNET UTILISATION
The Web Index 2014 released by World Wide Web
Foundation to measure the internet's contribution to
social, economic and political progress in the world has
placed Denmark on top followed by Finland and
Norway. India stands at 48th rank.
 The birthday of the former Prime Minister Atal
Behari Vajpayee on the 25th of December will be
observed as National Good Governance Day.
 Mahaparinirwan Diwas observed on 6 December
2014, death anniversary of Dr BR Ambedkar.
 The Times Higher Education (THE) Rankings 2015 of
UK has placed Bangalore-based IISc at No. 25 in the
overall 100, topped by China's Peking University.
 India’s most prestigious Indian classical music
function – The Tansen Sangeet Samaroh held at
Gwalior, Madhya Pradesh.
 The first Arabic translation of the Indian Constitution
launched by the Arab League in Cairo, Egypt.
 Bangladesh President Abdul Hamid arrived in
Kolkata on a two-day visit to West Bengal.
NEWS FROM STATES
FEBRUARY 2015
MUFFLERMAN SWEEPS DELHI
The Arvind Kejriwal-led Aam Aadmi Party on Feb 10
swept to power with 67 seats in the 70-member Delhi
Assembly, leaving only three to the Bharatiya Janata
Party and nil to the Congress. Later, Mr. Kejriwal was
sworn in as the Chief Minister of Delhi.
 Uttarakhand govt launched on Feb 7 its ambitious
“Himalaya Darshan” programme as part of its
ongoing efforts to boost tourism in the state.
 Haryana to set up Gram Sachivalayas to bring Gram
Panchayat and village level functionaries of all
departments under one roof for better functioning.
 The ten day long annual Taj Mahotsava, a cultural
extravaganza, began in Agra, UP from 18th February.
 Gujarat govt. has decided to set up ‘Plast India
International University’ in Vapi in partnership
with University of Massachusetts Lowell, USA.
 Madhya Pradesh won the 10th National Award for
excellent work in Mahatma Gandhi National Rural
Employment Guarantee Act, 2005 (MGNREGA).
 Haryana launched e-registration of properties in all
the 130 tehsil and sub-tehsils of the State on Feb 04.
 The First World Ocean Science Congress (WOSC) was
held in Kochi, Kerala from 5 to 8 February 2015.
JANUARY 2015
PUNJAB BANS SALE OF LOOSE CIGARETTES
The Punjab state has banned the sale of loose cigarettes
(as single sticks) and loose tobacco, becoming the first
State to do so. Ban has been issued as the sale is in
violation of Section 7 of the COTPA (Cigarettes and
Other Tobacco Products, Prohibition of Advertisement
and Regulation of Trade and Commerce, Production,
Supply and Distribution Act, 2003). Since loose
cigarettes are affordable and do not carry a pictorial or a
written warning, these will not be permitted to be sold.

J&K BEST IN e-INITIATIVE
Jammu and Kashmir has
been selected, for the first
time, for National e-
Governance Award 2014-
15 for the best district-
level initiative in the
country, for the project e-
Panchayat, launched in
2013-14
ASSAM ONLY PLACE TO GROW ‘PURPLE TEA’
According to a senior scientist and tea expert according
to Tocklai Tea Research Institute, Jorhat, Assam can
emerge as the only place in the world after Kenya to
become a producer of health-rich medicinal purple tea.
Currently, Kenya is the only country that produces
unique purple tea which fetches three to four times the
price of black tea.
 Amitabh Bachchan appointed as the brand
Ambassador for health sector in Andhra Pradesh.
 Hampi Utsav Jan 9 – 11, a mega cultural festival of
dance, drama, art and music held at Hampi, the
erstwhile seat of the Vijayanagar Empire in
Karnataka.
 Governor’s rule imposed in J&K as political parties
failed to muster the requisite number in the 87-
member Assembly for staking claim to form the
government.
 Voting for all 70 Delhi Assembly seats will be held on
February 7 and counting of votes will be done on
February 10
 Haryana has appointed yoga guru Ramdev as the
state's brand ambassador to promote yoga and
ayurveda in a big way.
DECEMBER 2014
WORLD’s LARGEST HUMAN FLAG
India set a new world record on Dec 7 for forming the
largest human flag, when over fifty thousand volunteers
formed the Indian Tricolour, at YMCA Grounds in
Chennai, beating the previous record held by the Sports
Club of Lahore where 28,957 people formed the flag of
Pakistan.
DIAL 161 FOR 4000 SERVICES IN KARNATAKA
On Dec 8, Karnataka launched “Mobile one” e-
governance initiative to enable public to access 4000
government and a few private services on their mobile
phones just by dialling 161. They can pay electricity,
water and BSNL telephone bills through their phones.
Farmers can know about monsoon, market rates and
subsidies. The young aspirants can know about job
offers in private sector.
 On Nov 29, Meghalaya got its first rail link when PM
Modi flagged off a train from Maligaon, Guwahati to
Mendipathar in Meghalaya, a distance of 131 kms.
 Andhra govt. signed a MoU with Singapore for the
development of its new capital that is set to come up
near Vijawayada region.
 The New Year festival of Tibetans known as Losar
festival is celebrated mainly in Lahaul Distt. It
denotes the start of winter session in the valley.
 Maharashtra to observe the year 2015 as “Year of
Digitised and Time-Bound Services” to standardise,
simplify and deliver the services electronically.
 Arunachal Pradesh won the Krishi Karman Award for
the year 2013-14 for showing exemplary agri-
performance in 14 different categories.
 Manipur to set up a Cultural University to promote its
rich cultural heritage, like Russia’s Moscow State Art
and Cultural University.
 Militants of the National Democratic Front of
Bodoland (Songbijit) gunned down over 80 persons in
Sonitpur and Kokrajhar districts of Assam.
GOVERNMENT
INITIATIVES
FEBRUARY 2015
NITI AAYOG HOLDS ITS FIRST MEETING
In the first meeting of the Governing Council of NITI
Aayog in New Delhi, the Prime Minister described ‘Team
India’ as a combination of three teams – the Prime
Minister and Chief Ministers; the Union Council of
Ministers; and the bureaucracy in the Centre and States.
He suggested formation of three sub groups for
improved functioning of ‘Team India’.
 The first sub-group will study the 66 centrally-
sponsored schemes and recommend which schemes
should continue, which should be transferred to
states, and which to discontinue.
 The second sub-group will focus on skill
development and creation of skilled manpower
within states.
 The third sub-group will decide on the institutional
mechanisms to be evolved for Swachh Bharat
Abhiyaan, so that cleanliness becomes a part of life
in perpetuity.

 It was also decided that all the states should create
two task forces under the aegis of the NITI Aayog,
one to focus on poverty alleviation, and the other to
focus on future development of agriculture.
ALL INDIA MOBILE NUMBER PORTABILITY
From May 3, cell phone subscribers will be able to retain
the same mobile number on relocating to anywhere in
India. The Telecom Regulatory Authority of India
amended the mobile number portability (MNP)
regulations for this purpose.
At present, number portability is available only within a
telecom circle.
PM LAUNCHES SOIL HEALTH CARD SCHEME
The nationwide “Soil
Health Card” scheme
was launched by the
Prime Minister from
Suratgarh, Rajasthan
on Feb 19, focusing on
the health of soil to
boost productivity
and bring about
increased prosperity.
At least 14 crore cards
are envisaged to be
issued over the next
three years. Test
reports could be made available over the internet or
mobile phones, said the blueprint of the scheme.
‘MADAD’ LAUNCHED FOR CONSULAR SERVICES
Government has launched Consular Grievances
Monitoring System named MADAD-Because You Are Us-
to register grievances pertaining to the Consular
Services offered by the Indian Missions and Posts
abroad. It will speed up forwarding and handling of
grievance of the consular related matters.
NATIONAL DEWORMING DAY ON FEB 10
The Ministry of Health and Family Welfare launched the
first National Deworming Day on Feb 10 to reduce the
threat of parasitic worm infections in children.
Medicine Albendazole will be orally administered to
pre-school and school-going children between one and
nineteen years of age in 12 states to begin with.
TWO CRORE TOILETS UNDER MNREGA
Govt plans to construct over two crore toilets in select
villages across the country under a programme of
making India free from open defecation by 2019. The
project will be implemented under MNREGA. Literate
and active women MNREGA workers will be selected as
the 'Sanitary Mates' to provide basic lessons about use
of toilets to people living in villages.
 The govt has launched a single window e-Biz portal
for 11 Central government services to bring
transparency in the ease of doing business.
 The government plans to launch a new scheme 'Krishi
Daak Service' to distribute improved seed varieties to
farmers at their doorstep, through post-offices.
 Govt has constituted a three-member Special
Investigation Team (SIT) headed by Pramod Asthana
for re-investigation of the 1984 anti-Sikh riot cases.
 The govt has launched a single window e-Biz portal
for 11 Central government services to bring
transparency and ease of doing business.
JANUARY 2015
SCHEME LAUNCHED TO SAVE GIRL CHILD
Prime Minister launched the
nationwide 'Beti Bachao-Beti
Padhao' (save girl child, educate
her) campaign from Panipat in
Haryana on Jan 22 to counter the
adverse sex ratio in the country.
 Noted film actress Madhuri
Dixit was roped in as the
brand ambassador of the
campaign.
 A special savings scheme by the name ‘Sukanya
Samriddhi Account’ was also launched to encourage
special savings for girl child.
SUKANYA SAMRIDDHI ACCOUNT
 Account can be opened in the name of a girl child of
up to 10-year-old.
 After attaining the age of 10 years, the account
holder can herself operate the account.
 Accounts can be opened in name of girl child in
banks and post offices,
 Interest payment at 9.1 per cent per annum.
 Deposits can be made for 14 years from the date of
opening of the account.
 Half of the fund can be withdrawn for her higher
education and marriage after she attains 18 years of
age.
 The scheme would mature on completion of 21
years from the date of opening of the account.
 The account can be transferred anywhere in India
 Minimum deposit of Rs. 1000 and thereafter any
amount in multiple of Rs. 100 can be deposited.
 Amount deposited in the scheme is eligible for
income tax rebate.
 For one time, a girl child who has attained the age of
10 years prior to one year from the date of
introduction of this scheme is also eligible under the
scheme.

 A maximum of Rs. 1,50,000 can be deposited in a
financial year.
 The account can be opened in any post office or
authorized branches of commercial banks across
the country by producing birth certificate of the girl
child.
 To meet the requirement of higher education
expenses of the account holder girl child, partial
withdrawal of 50 % of the balance would be
allowed after the girl child has attained the age of
18 years.
 The amount can be deposited in cash, cheque or
demand draft.
SCHEMES LAUNCHED FOR SC ENTREPRENEURS
In a bid to promote entrepreneurship among the
Scheduled Castes (SCs), the Ministry of Social Justice and
Empowerment launched two schemes on Jan 16 as
under:
1. Venture Capital Fund for Scheduled Castes, with an
initial capital of Rs.200 crore to provide financial
assistance up to Rs.15 crore for up to six years to SC
entrepreneurs. IFCI Ltd. will act as Nodal Agency to
operate this fund.
2. Green Business Scheme to provide loans up to Rs.1
lakh at concessional rate of interest to SCs for running e-
rickshaw, solar pumps and other solar energy-powered
implements.
HRIDAY SCHEME LAUNCHED
The government has launched a Heritage City
Development and Augmentation Yojana (HRIDAY) to
preserve and rejuvenate the rich cultural heritage of the
country. In the initial phase, 12 heritage cities have been
identified which will be rejuvenated and developed.
NITI AAYOG IN, PLANNING COMMISSION OUT
On Jan 1, the government announced that the Planning
Commission has been restructured and rechristened as
the NITI (National Institution for Transforming India)
Aayog. It will be a multi-tiered structure headed by
Prime Minister with a governing council comprising of
the chief ministers of all states and lieutenant governors
of union territories.
‘PRICE STABILISATION FUND’ LAUNCHED
Govt plans to set up a ‘Price Stabilisation Fund’ (PSF),
with a corpus of Rs 500 crore, to check price volatility
through procurement of selected perishable
horticulture produce, maintenance of buffer stocks and
their regulated release into the market. To begin with,
interventions would be supported for onions and
potatoes only and other commodities may be added
later on.
ON-LINE TRACKING OF TOILET USAGE
Union Ministry of Drinking Water and Sanitation has
said that people would be mobilised to check and verify
the use of toilets in the rural areas and they can post
photos or upload data of non use or misuse of toilets
through mobile phones, tablets or I-Pads onto a website
in real time.
Shortage of toilets costs the country more than $50 billion
a year, mostly through premature deaths and hygiene-
related diseases, according to a World Bank study.
NORMS RELAXED FOR SEZs
Aiming to revitalise SEZs, the government has permitted
dual-use of non-processing areas in special economic
zones, allowing developers to set up social
infrastructure like schools, hospitals and hotels which
can be accessed by people within and outside these
conclaves.
FACILITY TO LODGE FIR IN TRAIN
Under a new initiative by North Central Railway, rail
passengers will now be able to lodge an FIR in the train
itself. Earlier the passenger had to cut short his visit and
register the FIR at the nearest Government Railway
Police (GRP) station.
HELPLINE LAUNCHED FOR DRUG ADDICTS
Union Ministry of Social Justice and Empowerment has
launched a toll-free helpline (1800-11-0031) to assist
the alcoholic and drug-dependent persons. Initially, the
helpline will operate from 9:30 am to 6:00 pm from
Monday to Saturday and will be upgraded later on to a
24x7 helpline.
GREEN INDIA MISSION LAUNCHED
Govt launched 'Green India Mission' for undertaking
eco-friendly development of the rural areas. To begin
with 18 villages in Seraikela forest division in Jharkhand
have been selected.
DBTL LAUNCHED IN 622 DISTRICTS
The Direct Benefit Transfer of LPG (DBTL) scheme, now
called ‘Pratyaksh Hanstantarit Labh’ (PAHAL), launched
in 622 districts w.e.f. Jan 1, 2015. Finally, the scheme
will cover over 15.3 crore consumers across 676
districts of the country.

N I T I A A Y O G
(National Institution for Transforming India)
The Planning Commission was set up by the government in
March 1950 with the declared objective to promote a rapid
rise in the standard of living of the people by efficient
exploitation of the resources of the country, increasing
production and offering opportunities to all for
employment in the service of the community.
However, from being a under-developed economy in 1947,
India has now emerged a powerful economic giant being
the third largest economy in the world on the basis of
Purchasing Power Parity. The government has felt the
need for a change in the organisational set up to take the
economy to a next level of development and meet the
aspirations of the people.
Shortcomings observed with the system of Planning
Commission
India is a multi cultural country with distinct languages,
faiths and cultural ecosystems. The government feels that
the time has come for a paradigm shift in the manner the
policies are planned and implemented; taking in to account
the view points of the states as the major stakeholder in the
process of planning. The earlier approach of one size fits all
came for a sharp criticism depriving the states of
formulating policies for their area based on local
requirements.
Further, the exercise in planning that was being
followed by the erstwhile Planning Commission hardly had
any relevance for the present day market economy. There
was conflict between the ‘planning framework’ and the role
of ‘market’. The role of public sector which were the prime
movers of economy in the initial stages of development
were now incapable of meeting the demands of the
emerging economy. With the public sector getting edged
out with the private capital playing a crucial role in the
development, the role of Planning Commission was more
‘obstructive’ than ‘objective’. The new body is expected to
assist in policy making to enable the private capital and the
entrepreneur to reach its full potential.
The NITI Aayog will reorient its policies keeping in view
the following challenges being faced by the Indian
Economy:
1.Leveraging of India’s demographic dividend i.e. making
the best use of young population of the nation for
development and realisation of their potential through
education, skill development, elimination of gender bias,
and employment.
2.Rather than emphasising reduction of poverty, the new
mantra will be-Elimination of poverty, and the chance for
every Indian to live a life of dignity and self-respect.
3.Reddressal of inequalities based on gender bias, caste
and economic disparities.
4.Integrate villages institutionally into the development
process.
5.Policy support to more than 50 million small businesses,
which are a major source of employment creation.
6.Safeguarding of our environmental and ecological assets.
STRUCTURE OF NITI AAYOG
The NITI Aayog will comprise the following:
A. Chairperson: Prime Minister of India
B. Governing Council: Comprising the Chief Ministers of
all the States and Lt. Governors of Union Territories
C. Regional Councils: will be formed to address specific
issues and contingencies impacting more than one
state or a region.
D. Experts, specialists and practitioners with relevant
domain knowledge as special invitees nominated by
the Prime Minister
Full-time organizational framework will comprise of:
1. Chairperson: Prime Minster
2. Vice Chairperson : To be appointed by the Prime
Minister
3. Members: Full-time
4. Part-time members: Maximum of two from leading
universities research organizations and other relevant
institutions in an ex-officio capacity. Part time
members will be on a rotational basis.
5. Ex Officio members: Maximum of 4 members of the
Union Council of Ministers to be nominated by the
Prime Minister.
6. Chief Executive Officer: To be appointed by the Prime
Minister for a fixed tenure, in the rank of Secretary to
the Government of India.
7. Secretariat as deemed necessary.
(Note: for actual office holders please see
APPOINTMENTS section page 32)
Shortcomings foreseen in the process:
I. Will it continue to work in the same way as the
previous Planning Commission was working?
II. Distribution of Funds: This body is unlikely to allocate
funds or devise five-year and annual plans as was
being done by the Planning Commission. There is also
a question mark on its other key role regarding
allocation of resources to state governments.
The earlier plan allocation to states was being done
through the Gadgil-Mukherjee formula. It will have to be
worked out under the new dispensation. The Gadgil-
Mukherjee formula has relevance because it ensured well-
to-do states had to spare resources and money for the less
prosperous ones.
The success of this organisation will depend on the
following factors:
 Trust and cooperation it receives here from the
different ministries and the departments, it will be
working with.
 Cooperation it receives from the states
The first Aayog has onerous task of shaping the destiny of
the nation and making it an important new ‘institution’ in
the federal polity obligated with the objective of
transforming India from a developing economy to the next
level of development.
---x---

CHANDIGARH COULD BE FIRST ‘SMART CITY’
Finance Minister has indicated that the first Indian
smart city to be created probably could be Chandigarh.
Smart cities would be built in a way so that they have
uninterrupted power, water, proper sanitation, efficient
management of solid waste, decongestion of roads, last
mile connectivity and effective use of ICT. Several
countries like Japan, Germany, Sweden, Singapore,
Israel, UK, US, Hong Kong and the Netherlands have
shown interest in building smart cities in India.
DOMESTIC EFFICIENT LIGHTING PROGRAMME
Prime Minister launched a scheme for LED (light
emitting diodes) bulb distribution under Domestic
Efficient Lighting Programme (DELP) in Delhi on 5th
January. The LED bulbs will be supplied at an initial
payment of Rs 10 each and recovery of Rs 10 each for 12
months from their electricity bill. The programme shall
be launched all over the country.
SPECIAL PHABLET LAUNCHED FOR FARMERS
ICRISAT launched a customised low-cost combination of
phone and tablet computer ‘greenphablet’ for small
farmers. The device is powered by GreenSIM and is
dust- and shatter-proof, readable under bright sunlight;
operates from -20°C to +60°C.
ICRISAT: International Crops Research Institute for the
Semi-Arid Tropics. HQ: Hyderbad, Telangana
‘HIMMAT’- MOBILE APP FOR WOMEN
India's first integrated mobile application for women
safety called ‘Himmat' was launched in Delhi on Jan 1.
The app can alert the police in the hour of need by either
shaking the phone or pressing the power button twice.
It is directly linked to the Police Control Room and
allows police to locate the victim, with updation every
ten seconds.
PRESIDENT APPROVES JUDICIAL COMMISSION
President gave his assent to the National Judicial
Appointments Commission (NJAC) Act, nearly ending
the two-decade-old collegium system for appointment
of judges of the Supreme Court and 24 high courts.
The commission will be headed by the Chief Justice and
will have five other members - two senior-most judges of
the SC, the Law Minister and two eminent persons.
INDIA’s 1st CNG TRAIN STARTS FROM REWARI
Country’s first compressed natural gas (CNG) - powered
train was flagged from Rewari, Haryana on Jan 13. The
dual-fuel CNG Diesel Electric Multiple Unit (DEMU) will
run between Rewari and Rohtak everyday and would
help in reducing the operating cost of locomotives by
over 50%.
 India’s first International Institute of Music will be set
up in Kerala by a trust headed by Sarod Maestro
Ustad Amjad Ali Khan and his family.
 Department of Disability Affairs has been renamed as
Department of Empowerment of Persons with
Disabilities (Viklangjan Sashaktikaran Vibhag).
 President signed the Citizenship Ordinance to merge
Person of Indian Origin (PIO) and Overseas
Citizenship of India (OCI) schemes and to grant life-
long Indian visa to PIOs.
DECEMBER 2014
NATIONAL MISSION FOR TEACHERS
Prime Minister launched a Rs 900-crore scheme "Pandit
Madan Mohan Malaviya National Mission on Teachers
and Teaching" at Benaras Hindu University, Varanasi on
Dec 25 aimed at creating an environment for producing
high quality teachers.
GRAHAK SUVIDHA KENDRAS FOR CONSUMERS
Government has decided to set-up Grahak Suvidha
Kendras (Consumer care centres) to provide counseling
to consumers in redressal of their grievances and assist
them in registering their complaints in the appropriate
consumer forums. The Centres will also be authorized to
take up complaints with private companies and service
providers on behalf of the government.
MISSION INDRADHANUSH FOR VACCINATION
Government has launched Mission Indradhanush to
cover all those children by 2020 who are either
unvaccinated or partially vaccinated against seven
vaccine preventable diseases - Diphtheria, Whooping
Cough, Tetanus, Polio, Tuberculosis, Measles and
Hepatitis B.

ORDINANCE FOR 49% FDI IN INSURANCE
On Dec 24, Union Cabinet approved promulgation of the
ordinance on Insurance Bill to raise foreign investment
cap in the insurance sector from 26 to 49 per cent. It re-
promulgated the ordinance to allow resumption of coal
block allocation. It also opened the medical devices
sector to foreign investment by allowing 100 per cent
FDI in these.
COMMITTING SUICIDE IS NO MORE A CRIME
The government has decided
to repeal Section 309 from
the Indian Penal Code,
claiming support of 18 states
and 4 Union Territories for
decriminalizing attempt to
commit suicide. The step
was taken on the recommen-
dation of the Law
Commission of India.
Section 309 of IPC makes the act of suicide punishable
with jail term of up to one year and fine.
‘SUSHASAN EXPRESS’ TO HONOUR VAJPAYEE
To honour former Prime Minister Atal Bihari Vajpayee, a
new train - The Sushaasan (good governance) Express
launched on Dec 25, from Gwalior (Madhya Pradesh),
the birth place of Mr. Vajpayee, to Gonda in Uttar
Pradesh.
 Govt has decided to pay 8.75 per cent interest on
provident fund deposits of Employees Provident Fund
Organisation (EPFO) for the year 2014-15.
 Justice G P Mathur committee set up to examine the
possibility of forming a Special Investigation Team
for re investigation of the 1984 anti-Sikh riot cases.
ECONOMIC INDICATORS
FEBRUARY 2015
INDIA SET TO GROW BY 7.4%
The Central Statistics Office (CSO) data released on Feb
10 showed that India is set to grow 7.4 per cent in the
year 2014-15 and cross the $2.1-trillion mark against
6.9 per cent achieved in 2013-14 on the back of robust
manufacturing sector performance and a surge in public
expenditure.
 India's monthly per capita income is likely to be at
Rs 7,378.17 this financial year, up over 10 per cent
from last year, when it was Rs. 6,699.88 year.
 India grew 7.5 per cent in the October-December
quarter, overtaking China’s 7.3 per cent growth in
the same quarter, to become the fastest growing
major economy in the world.
 The Central Statistics Office has revised its base
year to 2011-12
CORE SECTOR GROWTH DOWN TO 2.4 %
Slump in the production of crude oil and natural gas,
pushed the growth rate of eight core sector industries to
three-month low of 2.4 per cent in December 2014 as
compared to 6.7 percent in Nov, 2014.
TRADE GAP SHRINKS TO $ 8.3 BILLION
India's trade deficit narrowed to an 11 month low of 8.3
billion dollar in January 2015 due to the sharpest
contraction in imports since May last year. Exports
sharply contracted by 11.19 % in Jan to $ 23.9 billion
while imports declined by 11.39 % to $32.2 billion.
 India's foreign exchange reserves soared by $ 1.03
billion to touch a new lifetime high of $ 334.19 billion
for the week ended 20th February.
 Growth in industrial production slowed to 1.7 % in
December 2014 from 3.9 percent in November,
mainly due to contraction in the mining sector.
JANUARY 2015
INDIA SET TO GROW BETTER THAN CHINA
As per Global Economics Prospects Report published by
the World Bank, India is set to clock a 7% rise in GDP in
2017 compared with 6.9% for bigger rival China. “India
will recover to 6.4% in the current calendar year itself
on the back of higher export growth and bolstered
investor confidence with the election of a reform-
minded government at the Centre”, said the report.
INDIA TO GROW BY 6.5% - MORGAN STANLEY
A report by global financial giant Morgan Stanley says
that Indian economy is on its way to grow by 6.5 per
cent as the government's reforms agenda is on track and
the pace is accelerating too.
INDIAN ECONOMY SET TO GROW AT 6.4%
Speaking at the Vibrant Gujarat Summit, World Bank
President Jim Yong Kim said that the Indian economy
was likely to grow at 6.4 per cent in the current year and
accelerate further in the next year in view of the
economic measures being taken by the present
government.
 A report by the IMF says that India is expected to
grow at 6.3 per cent this year and 6.5 per cent in
2016 by when it is likely to cross China's projected
growth rate.
 A United Nations report says that India will see
gradual growth acceleration with its GDP expected to
reach 5.9 per cent this year and 6.3 per cent in 2016.
 India's GDP growth has averaged 6.5 per cent over
the last 25 years, while in the last two years it
averaged 4.9% alongside very high inflation till
recently.

FISCAL DEFICIT TO BE CUT TO 3.6% OF GDP
The Expenditure Management Commission, headed by
Bimal Jalan, has recommended to the government that it
should cut fiscal deficit to 3.6 per cent of the GDP during
2015-16. The recommendations are as per the
provisions of the Fiscal Responsibility and Budget
Management Act, 2003.
FDI IN INDIA UP BY 14 PER CENT
As per the 'Global Investment Trade Monitor' report
released by United Nations Conference on Trade and
Development (UNCTAD), India's FDI increased by 26
per cent in 2014 to an estimated 35 billion US dollar
with maximum growth in the service sector, despite the
decline in global Foreign Direct Investment inflows.
NEW CPI FOR BETTER PROJECTION
For presenting a more accurate and realistic price
situation, government plans to release by next month a
new series of Consumer Price Index (CPI) with 2012 as
base year for computing retail inflation rate. Figures for
January 2015 will be compiled on revised base and will
be released on February 12.
 As per a Labour Bureau survey, unemployment rate
in the country rose to 4.9 per cent in 2013-14, mainly
on account of increase in joblessness in rural areas.
DECEMBER 2014
MOODY’S PROJECTS INDIA’S GROWTH @6%
Global rating
agency Moody’s has
projected that
Indian economy is
expected to pick up
pace in 2015 and
grow in the range of
5 to 6 per cent,
helped by strong
domestic demand.
 The ADB says that India is on track to achieve 5.5%
growth rate in 2014-15 as declining oil prices present
a golden opportunity for many beneficial reforms.
ECONOMY & INDUSTRY
FEBRUARY 2015
GOVT NOTIFIES ‘IND AS’ NORMS
Government has notified the rules for Indian Accounting
Standards (Ind AS) which are converged with global
standards IFRS. The norms will be mandatory for
companies from 1 April 2016. However, these norms
can be followed by corporates on a voluntary basis from
1 April 2015. For companies having net worth of Rs.500
crore or more, the norms would be mandatory from 1
April, 2016.
NUCLEAR SUPPLIERS NOT LIABLE
Govt has clarified that the U.S. suppliers of nuclear
reactors and parts will not be directly liable in case of a
nuclear accident, nor can they be sued by Indian nuclear
operators unless the contract they sign clearly states it.
Further, the immediate liability for any incident will be
channelled only to the operator — in this case the public
sector unit Nuclear Power Corporation of India Ltd.
There will be no changes in the Civil Liability for Nuclear
Damages (CLND) Act, 2011.
ADB TO GRANT $400 LOAN TO INDIA
The Asian Development Bank has inked two loan
agreements worth USD 400 million with India to
upgrade district roads in Madhya Pradesh and to
support improvements to power transmission and
distribution systems in Assam. Of this, $350 million is
for Madhya Pradesh and remaining $50 mn. for Assam.
 India reclaimed its position as the leading consumer
of gold in 2014 with an estimated consumption of
880 tonnes against China’s 866 tonnes.
 World Bank agrees to grant $ 8 million loan to India
for sustainable livelihoods and adaption to climate
change project of National Rural Livelihoods Mission.
JANUARY 2015
‘MAKE IN INDIA’ IS BIG HIT ONLINE
The Department of
Industrial Policy and
Promotion-led Make In
India (MII) initiative
has become the largest
and fastest growing
government initiative ever on digital platform. Within
three months of its launch, the initiative has already
touched over 2.1 Billion global impressions on social
media and reached an overall fan base of over 3 Million
on its Facebook page.
Make In India initiative focuses on attracting businesses
to invest and manufacture in India.

DUTY FREE IMPORTS FROM AFGHANISTAN
India has allowed duty free access to Afghanistan’s
export products in Indian markets under the Agreement
of South Asia Free Trade Area (SAFTA). The export
consignments will be allowed through the Integrated
Check Post at Attari in Amritsar, Punjab.
INFOSYS TO INVEST $ 250 MILLION
Leading IT company - Infosys has assured Indian
government that they will spend USD 250 million to
fund innovations in software and services in India. The
assurance was made by company CEO Vishal Sikka
during his meeting with the Prime Minister.
IMPORT OF MOBILES RESTRICTED
Government has prohibited imports of all kind of mobile
handsets with fake or duplicate Unique Identity
Numbers. The decision will help the security agencies to
track callers using different SIM (Subscriber Identity
Module) cards.
‘PK’ CREATES BOX OFFICE RECORDS
According to a report on Boxofficeindia.com, the film PK
recorded a sale of Rs. 500 crore gross worldwide within
two weeks of its release, there by becoming first ever
Indian movie to have such huge collection in this period.
OFFICE SPACE COST HIGHEST IN NEW DELHI
Connaught Place in the National Capital has become the
world’s sixth costliest office destination, with an annual
occupancy cost of around $ 160 per square feet, says a
report of global property consultant CBRE. (London is
the costliest, followed by Hong Kong and Beijing.)
NEW FERTILIZERS COMPANY FORMED
National Fertilizers Limited (NFL), Engineers India
Limited (EIL) and Fertilizer Corporation of India (FCIL)
on 14 January 2015 signed an agreement to form a Joint
Venture Company (JVC) Ramagundam Fertilizers and
Chemicals Limited in Karimnagar district of Telengana.
NEW NAME FOR IRDA
Insurance Regulatory and Development Authority
(IRDA) has been renamed as ‘Insurance Regulatory and
Development Authority of India’ after the promulgation
of Insurance Laws (Amendment) Ordinance, 2014.
 European Union has decided to lift a seven-month-
long ban on the import of mangoes from India.
 Sun Edison USA and India’s Adani Group will invest
Rs.25,000 cr in setting up one of the world’s largest
solar photovoltaic manufacturing unit in Gujarat.
 ADB to give $ 75 million loan and $1.8 million grant
to Karnataka for Integrated Urban Water
Management Investment Program.
 India and Israel have signed a joint agreement to
implement the third phase of the agriculture
cooperation project for next three years, 2015-18.
 To boost the jute sector, govt has directed packaging
of sugar and food grains in jute bags to minimum
extent of up to 90 % of production.
 To meet the fiscal deficit, the government sold 10 per
cent stake in state owned Coal India Ltd to raise
about Rs 24,000 crore.
 Union Cabinet approved the hike of government stake
in Industrial Finance Corporation of India (IFCI) Ltd.
to 51 percent from around 48 percent at present.
DECEMBER 2014
RURAL HOMES – LOW ASSETS, HIGH DEBTS
Findings of the 70th round of National Sample Survey's
All India Debt and Investment Survey show that
households in rural areas hold assets worth over Rs. 10
lakh on average, less than half the holdings by those in
cities. Further, about 31 per cent of the rural households
and 22 per cent of the urban households reported debt
(cash loan) outstanding as on June 30, 2012. The
average amount of debt for a rural household was Rs
32,522 and that for an urban household was Rs 84,625.
FINANCE COMMISSION SUBMITS REPORT
The 14th Finance Commission, headed by former
Reserve Bank of India, RBI governor Y V Reddy,
submitted its report to the President's office on Dec 11.
The panel has given its views on the devolution of tax
receipts from the Centre to the states from 1st April
2015 to 31st March 2020.
WORLD BANK LOAN FOR EDFC
India has inked a US $1100 million IBRD Direct Lending
pact with the World Bank for phase two of the Eastern
Dedicated Freight Corridor (EDFC). It is a 1849 kms
broad gauge railway freight corridor, starting from
Ludhiana, Punjab to Dankuni, Kolkata in West Bengal.

IFRS TO BE APPLICABLE FROM APRIL 1, 2015
The Ministry of Corporate Affairs has advised that the
new International Financial Reporting Standards (IFRS)
shall be applicable for large companies that can
voluntarily start adopting them in the next fiscal year
starting April 1, 2015, after which the rules will become
compulsory.
GOVT GETS 1715 CRORE FROM SAIL
Union government mopped up around 1715 crore
rupees with the sale of 5 percent stake in SAIL at a floor
price of 83 rupees per share, increasing the public share
to 25 per cent. As per the Securities Contracts
(Regulation) Rules of SEBI, minimum public shareholding
in listed state-owned firms should be 25 percent and this
must be achieved by 21 August 2017.
CREDIT GUARANTEE FUND FOR FACTORING
The Union Cabinet has cleared a proposal for setting up
of a 500 crore rupees Credit Guarantee Fund for
Factoring for MSMEs (Micro, Small and Medium
Enterprises). Factoring is a financing arrangement for
suppliers by making pre-payments against invoices. It
facilitates collection of receivables and provides liquidity
to MSMEs
 Government has asked PSUs to ensure that they
procure 20% of their requirements from the products
manufactured by MSMEs, w.e.f. April 01, 2015.
 Snapdeal.com has announced the launch of ‘Agri
Store’, offering online products like seeds, fertilizer
and irrigation tools, among others, to farmers.
 World Bank will lend Rs 475 crore ($75 million) to
the Andhra Pradesh Government for implementing a
rural growth project.
 Government has fixed an export target of $340 billion
for the current fiscal. Actual exports last year were
$312.6 billion.
 The Asian Development Bank (ADB) will extend $200
million loan to Punjab to improve the state's fiscal
situation.
 India Germany sign loan pact for euro 625 million for
the Green Energy Corridors project under the Indo-
German bilateral development cooperation.
 The World Bank has approved $130 million credit for
the Nepal Grid Solar and Energy Efficiency Project to
minimize energy shortages in Nepal.
BANKING & FINANCE
FEBRUARY 2015
SLR SLASHED TO 21.5 PER CENT
In its 6th Bi-monthly Monetary Policy Statement
announced on Feb 3, the Reserve Bank held interest
rates steady at 7.75 per cent but cut the statutory
liquidity ratio (SLR) by 50 basis points to 21.5 per cent
of their total deposits from February 7, prodding banks
to increase lending. This cut will spare around Rs 42,000
crore with the banks, giving them more leverage for
lending. RBI has estimated that the real GDP in 2015-16
is expected to rise by 6.5 percent.
INDIANS CAN INVEST $2.50 LAC OVERSEAS
Encouraged by foreign exchange reserves touching
record peak levels, the Reserve Bank in its by monthly
policy statement announced on Feb 3, doubled the
annual overseas investment ceiling for individuals to
$250,000 per person per year under the Liberalised
Remittance Scheme (LRS).
WELCOME THE NEW ONE RUPEE NOTE
The Reserve Bank of India will soon put in circulation
currency notes in one rupee denomination. The notes
will be printed by the Government of India as provided
in The Coinage Act 2011. The government had
discontinued printing of one rupee notes in November
1994 due to higher printing costs.
RBI ALLOWS NON-CALLABLE DEPOSITS
The RBI has allowed banks to offer deposit schemes up
to Rs 1 crore which cannot be broken prematurely —
so-called non-callable deposits — and they can earn
different rates of interest.
At present, all deposits accepted from individuals and a
Hindu Undivided Family up to Rs 1 crore can be
withdrawn prematurely, leading to asset-liability
mismatches in banks.
PMJDY GETS IN TO GUINNESS BOOK
Pradhan Mantri Jan-Dhan Yojana has got overwhelming
response all over the country. It entered the Guinness
Book of World Record for opening over 12.5 crore bank
accounts through the public sector banks with around
10,500 crore rupees. The Rupay Debit Cards have been
issued to over eleven crore account holders so far.
PMJDY OD TO BE PART OF PRIORITY SECTOR
Reserve Bank has advised that the overdrafts extended
by banks up to Rs.5,000 in PMJDY accounts will be
eligible for classification under priority sector advances
(‘others’ category) and also under ‘weaker sections’,
provided the borrower’s household annual income does
not exceed Rs.60,000 for rural areas and Rs.1.20 lakh in
non-rural areas.

GOVT TO INFUSE EQUITY NINE BANKS
Government will infuse Rs. 6,990 crore in nine public
sector banks including SBI, Bank of Baroda and Punjab
National Bank for enhancing their capital to meet the
global risk norms under Basel III guidelines of Bank for
International Settlements. This is the first tranche of
capital infusion for which the government had allocated
Rs. 11,200 crore in the budget for 2014-15.
BANKS TO BE CLOSED ON 2ND/4TH SATURDAY
As per an agreement reached between IBA and bank
unions, public sector banks will remain closed on
second and fourth Saturdays. However, they will work
full-day on remaining Saturdays. At present banks work
half-day on all Saturdays.
BANKS TO DISCLOSE UNCLAIMED DEPOSITS
In a bid to help people who have unclaimed deposits
lying with banks, RBI has directed banks to prominently
display such account holders' names on the websites
and provide them with a "Find" option to locate the
information easily.
BANKS TO INSTALL CASH DEPOSIT MACHINES
The Reserve Bank has allowed banks to install Cash
Deposit Machines/ Bunch Note Acceptor Machines at
locations selected by them (banks) without getting its
prior permission. RBI, however, advised banks to install
such machines with adequate security arrangements.
BANKS NOT TO SEND FAKE NOTES TO POLICE
The Union home ministry has asked the Reserve Bank to
direct the banks that in case the number of counterfeit
currency notes seized at a bank branch is up to four
pieces in a single transaction, they need not send notes
to the police but handle it themselves. Banks should not
return counterfeit or fake note to the customers;
instead, it should be cancelled & retained by the banks.
INSTANT REMITTANCE APP FROM ICICI BANK
ICICI Bank has launched ‘Pockets’, a digital banking
service, enabling users to instantly send money to any e-
mail id, mobile number, friends on Facebook and bank
account. Anyone, including those who are not customers
of ICICI Bank, can easily download the ‘e-wallet’ from
Google Playstore, fund it from any bank account in the
country and can start transactions immediately.
HDFC BANK RAISES 10,000 Cr FROM PUBLIC
HDFC Bank raised about Rs 8,000 crore by selling
American Depository Receipts in USA and another Rs.
2000 crore by selling India-listed shares to qualified
institutional investors in India. It was the largest follow-
on offer by a private sector firm. With this sale, HDFC
Bank became one of the best capitalised lenders in the
country with a capital adequacy ratio of 15.7 per cent.
CIC MEMBERSHIP COMPULSORY FOR LENDERS
Reserve Bank has asked all credit institutions to become
members of all Credit Information Companies. As per
present rules, NBFCs are required to become member of
at least one CIC and provide them credit data.
RULES FOR INVESTMENT ADVISORY SERVICES
Securities and Exchange Board of India (SEBI) has said
that a bank or an NBFC which proposes to undertake
investment advisory services has to first obtain
permission by Reserve Bank of India and then shall
apply to SEBI for grant of registration.
 RBI has lifted the ban on imports of gold coins and
medallions by banks and trading houses. However,
the sales will be permitted against upfront payment
only.
 A high powered committee chaired by R Gandhi, Dy.
Governor RBI is formed to review the structure and
functioning of the Urban Cooperative Banking Sector.
 HDFC Bank is set to introduce a new app, Chillr,
which will allow users to send money to any contact
in their phone books, 24X7.
JANUARY 2015
RBI LOWERS REPO RATE TO 7.75%
The Reserve Bank of
India on 15th January,
2015 cut down repo
rate by 25 basis points
to 7.75 percent from 8
percent, with immediate
effect, yielding to
growing signs of
slowing inflation and a
flagging recovery. RBI
has announced this rate cut ahead of its next monetary
policy on February 3.
Consequently, the reverse repo rate under the LAF stands
adjusted to 6.75 per cent, and the marginal standing
facility (MSF) rate and the Bank Rate to 8.75 per cent
with immediate effect. This cut in repo rate is likely to
reduce interest rate on various bank loans.
NEW GUIDELINES FOR BASE RATE
The Reserve Bank of India has asked banks to notify the
Base Rate, or the minimum lending rate, at least once in
every three months, based on the cost of funds; a move
seen as a demand on bankers to pass on the changes in
the policy rate to borrowers. At present, the review of
the Base Rate does not have a fixed schedule. Further,
banks have been allowed to review the Base Rate
methodology after three years instead of the current
periodicity of five years.

PMJDY CREATES WORLD RECORD
Pradhan Mantri Jan Dhan Yojana (PMJDY) has emerged
as the largest financial inclusion initiative in the world
with 11.5 crore bank accounts opened under the scheme
and has entered the Guinness Book of World Records.
The scheme covered 99.74 per cent of the households
that were outside the banking system.
‘GYAN SANGAM’ – BANKERS’ SUMMIT AT PUNE
India's top PSU bankers and select policy makers
gathered in Pune for a two-day (Jan 2-3) retreat - 'Gyan
Sangam’ for a brainstorming session to give a facelift to
PSU banks. Bankers made presentations on their
agenda for reforms with the focus on promotion of
financial inclusion.
RBI CLARIFIES ON SMALL BANKS
The Reserve Bank has clarified that business houses
with assets above Rs 1,000 crore and having finance
companies will not be eligible to apply for a small bank
license. Further, if the existing non-banking finance
companies apply for the small bank, they will have to
fold their operations into the small bank.
SMALL RRBs EXEMPTED FROM FATCA
The Reserve Bank has advised that Regional Rural
Banks with assets less than $175 million need not
register with the US Internal Revenue System under
FATCA- Foreign Account Tax Compliance Act.
FATCA is a US law whereby foreign financial institutions
across the world have to report to the US IRS of any
transaction of clients who could be subjected to American
tax laws.
RBI TO SHARE INFO WITH US FEDRAL
The RBI has signed an information sharing agreement
with US banking regulators for better coordination in
supervising financial institutions. RBI concluded an
agreement on Supervisory Cooperation and Exchange of
Supervisory Information with the Board of Governors of
the Federal Reserve System, Office of the Comptroller of
Currency and Federal Deposit Insurance Corporation, all
from USA.
RBI TO SHARE INFORMATION WITH BRAZIL
The Reserve Bank of India has signed a Memorandum of
Understanding on “Supervisory Cooperation and
Exchange of Supervisory Information” with Banco
Central do Brasil, central bank of Brazil.
BANKS ALLOWED AS INSURANCE BROKERS
Seeking to increase insurance penetration in the
country, the Reserve Bank of India has allowed banks to
act as brokers for insurers, set up their own subsidiaries
and also undertake referral services for multiple
companies.
TRANSPARENCY IN LOANS
RBI has asked banks to display on their website the total
fees and charges applicable on various types of loans
and should be disclosed to individual borrower also at
the time of processing of loan.
NABARD JOINS HANDS WITH IIM, A’BAD
Nabard has signed an MoU with the Indian Institute of
Management, Ahmedabad, to set up a Chair to
encourage research in climate change, rural livelihood
and financial inclusion, among others. The chair is
expected to offer inputs on issues confronting
agriculture marketing and suggest innovative models to
make farming a more profitable proposition for the
country's farmers.
ICICI BANK LAUNCHES CONTACTLESS CARDS
ICICI Bank has launched the country’s first contactless
debit and credit cards that use the near-field
communication (NFC) technology, enabling customer to
make payments by just waving the card near merchant
terminals instead of swiping the same. The new
technology provides customers improved convenience
of speed and security as the card remains with
customer.
KOTAK LAUNCHES JIFI SAVER ACCOUNT
Kotak Mahindra Bank has
launched Jifi Saver, a social
savings bank account which
can be seamlessly managed via Twitter and
Facebook, offering almost all the features of a regular
savings account.
NEW KYC NORMS FOR NBFCs
Keeping in view the practical difficulties faced in
frequent renewal of KYC norms, RBI has notified relaxed
KYC time norms as under:
– For high-risk accounts – at least every 2 years
– For medium risk accounts - at least every 8 years
– For low risk accounts – at least every 10 years
Earlier, NBFCs were required to renew KYC norms every
two years for high and medium risk accounts and every
five years for low risk accounts.
ATMs ALLOWED TO POST OFFICEES
The government has allowed certain eligible branches of
Post Offices to issue ATM cards for their Savings bank
accounts and also to issue account statements instead of
giving out passbooks.
BANK LOANS / DEPOSITS MOVE UP
Latest RBI data shows that the outstanding bank loans
rose by 10.7 per cent to 63.91 trillion rupees in the two
weeks up to January 9, compared to previous years
during the same period, deposits grew by 11.9 per cent
to Rs.84.16 trillion.

 Yes Bank signed an agreement with U.S. govt’s
Overseas Private Investment Corporation for $220
million loan for on-lending to micro, small and
medium enterprises.
 Reserve Bank and the European Central Bank (ECB)
have signed a memorandum of understanding for
cooperation in the area of central banking.
 RBI has allowed Indians to carry high value notes of
Rs 500 /1000 while travelling to Nepal and Bhutan
with a cap of Rs 25,000 on the total amount.
 Government has decided to separate the post of
Chairman and Managing Director and Chief
Executive Officer, CEO in public sector banks.
DECEMBER 2014
CHARTER OF CUSTOMER RIGHTS
The Reserve Bank released a charter of customer rights
on Dec.3 that lays down five basic rights that bank
customers enjoy. This will also simplify the process for
common man as now he can simply flash this charter
and demand that the rights be met.
Here are the rights of customers as notified by the RBI.
Right to Fair Treatment: No discrimination on basis
of gender, age, religion, caste and physical ability
Right to Transparency, Fair and Honest
Dealing: Contracts or agreements between financial
service provider and customer should be transparent
and easy to understand
Right to Suitability: Products offered should be
appropriate to the needs of the customer
Right to Privacy: Customers' personal information to
be kept confidential. No unwarranted communication,
electronic or otherwise, to be sent
Right to Grievance Redressal and Compen-
sation: Banks accountable for products offered
(including third party products like insurance, mutual
funds) and to facilitate easy grievance redressal.
RBI DEFINES ‘NON COOPERATIVE BORROWER’
The Reserve Bank of India on Dec 22 issued a new set of
norms defining non-cooperative borrowers (NCB). A
NCB is one “ who does not engage constructively with
his lender by defaulting in timely repayment of dues
while having ability to pay, thwarting lenders' efforts for
recovery of their dues by not providing necessary
information sought, denying access to assets financed or
collateral securities, obstructing sale of securities".
RRB AUTHORISED CAPITAL HIKED TO 2000 CR
A bill to raise the authorised capital of Regional Rural
Banks (RRBs) to Rs 2,000 crore (from Rs 5 crore at
present) and enable them to mop up funds from the
capital market was passed by the Lok Sabha on Dec 22.
However, government participation combined with
sponsoring bank’s share will not be allowed to come
below 51 per cent.
PMJDY ACCOUNTS ARE FOR ALL
Government has clarified that persons already having
bank account need not open a fresh one to avail benefits
of the Pradhan Mantri Jan Dhan Yojana (PMJDY). They
will have to apply for a RuPay card in the existing
account to get benefit of accidental insurance and other
benefits.
BANKS ALLOWED TO HAVE PUBLIC ISSUE
The Union Cabinet allowed state-run banks to raise
equity capital from the market subject to the condition
that government stake should not fall below 52%. The
proposal is part of the government plan to cut banks'
dependence on the budget for capital.
INTEREST SUBVENTION ON FARM LOANS
Government has approved the continuation of interest
subvention for short-term crop loans up to Rs 3 lakh to
farmers. This means that banks will charge only 7 per
cent per annum. Further, additional interest subvention
of 3 per cent per annum will be given to those farmers
who repay on time that is within one year of
disbursement of their short-term crop loans.
RTGS TIMINGS INCREASED
To promote electronic payments, the Reserve Bank of
India has increased the Real Time Gross Settlement
(RTGS) business hours to 12 hours from 8 am to 8 pm
on weekdays and from 8 am to 3.30 pm on Saturday.
The new timings will come into effect from 29
December, 2014.
SBI LAUNCHES TWO NEW INDICES
The State Bank of India has launched two indices
namely the SBI Monthly Composite Index and the SBI
Yearly Composite Index that will primarily track
manufacturing activity and offer forward-looking
economic trends. The index will help policy makers and
market participants to identify turning points in the
manufacturing cycles in advance and adjust their
investment plans or strategy.
GYANM COLLEGE OF COMPETITIONS
Opens a Centre in
BATHINDA
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