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Press Information Bureau THE HINDU Ashish Malik's Daily Current Affairs (With MCQs)- 03/02/19 unacademy - AshishMalik-8996
INSTEX - Instrument In Support Of Trade Exchanges It is a payment mechanism being setup by the European Union to secure trade with Iran and skirt US sanctions after Washington pulled out of the landmark nuclear deal last May. INSTEX will allow trade between the EU and Iran without relying on direct financial transactions.
Facts for Prelims INSTEX is registered at Paris. It is a project of the governments of France, Germany and Britain It will initially be used for non-sanctionable trade, including humanitarian goods such as medicine, food and medical devices.
Bank Recapitalization . The Reserve Bank of India (RBI) has lifted the Prompt Corrective Action (PCA) framework operational curbs on Bank of India (Bol), Bank of Maharashtra (BoM) and Oriental Bank of Commerce (OBC).
What is PCA? PCA norms allow the regulator to place certain restrictions such as halting branch expansion and stopping dividend payment. It can even cap a bank's lending limit to one entity or sector. Other corrective action that can be imposed on banks include special audit, restructuring operations and activation of recovery plan Banks' promoters can be asked to bring in new management, too. The RBI can also supersede the bank's board, under PCA
When is PCA invoked? . The PCA is invoked when certain risk thresholds are breached . There are three risk thresholds which are based on certain levels of asset quality, profitability, capital and the like. The third such threshold, which is maximum tolerance limit, sets net NPA at over 12% and negative return on assets for four consecutive years.
Facts for Prelims There are two type of restrictions, mandatory and discretionary. Restrictions on dividend, branch expansion, directors compensation, are mandatory while discretionary restrictions could include curbs on lending and deposit. . Ques for Mains:- . What do you understand by Prompt corrective action framework? Critically analyze whether recapitalizing banks which are under PCA framework is a bad idea?
Guru Padmasambhava . An international conference and exhibition of rare artefacts about the life and legacy of 8th century Buddhist sage Guru Padmasambhava is being held in New Delhi The conference is titled "Life and Legacy of Guru Padmasambhava" The conference also celebrates the 50 years of diplomatic relations between India and Bhutan.
Key facts on Guru Padmasambhava . Guru Padmasambhava is known as the Second Buddha because he played a seminal role in spreading Buddhism and Buddhist teachings across the Himalayan region including Northeast India, Nepal, Bhutan and Tibet. * Thangka paintings, sculptures and photographs portray the life and teachings of the Guru
MCQs- 03-02-2019 Q.1 INSTEX, which stands for Instrument In Support Of Trade Exchanges will allow trade between:- a) EU and lran b) EU and Iraq c) EU and China d) EU and India
Q.2 Which country is not a part of INSTEX a) France b) Germany c) Britair d) Russia
Q.3 Which of the following is/are not correct regarding PCA in banking sector? a) PCA norms allow the regulator to place certain restrictions such as halting branch expansion and stopping dividend payment. b) Banks' promoters can be asked to bring in new management c) It can't cap a bank's lending limit to one entity or sector d) All are correct
Q.4 Thangka paintings, sculptures and photographs portray the life and teachings of: a) Mahavira b) Gautam Buddha c) Tirot singh d) Guru Padmasambhava