1.

Karur Vysya Bank wins best banker award

i. Karur Vysya Bank has won Best Banker Growth-Mid Sized award in the second edition of The Sunday Standard Best Bankers Awards 2013. ii. K. Venkataraman, Chief Executive, KVB, received the award on behalf of the bank from Minister for Urban Development Mr Kamal Nath in New Delhi . 2. RBI: Poor can also open zero balance account in foreign banks

i. People belonging to weaker sections in the country can also open zero balance accounts in foreign banks such as HSBC, Citibank and Standard Chartered Bank and avail free ATM-cum-debit card facility. ii. The Reserve Bank on Wednesday said its 'Basic Savings Bank Deposit Account (BSBDA) guidelines are applicable to "all scheduled commercial banks in India, including foreign banks having branches in India". iii. The RBI said there is no requirement for any initial deposit for opening such accounts. As per the central bank's guidelines, the BSBDA should be considered a normal banking service available to all and the account should not have the requirement of keeping any minimum balance. iv. "Banks are advised not to impose restrictions like age and income criteria of the individual for opening BSBDA," RBI said. v. However, holders of 'Basic Savings Bank Deposit Account' will not be eligible for opening any other savings account in that bank. NOTE: i. Under the BSBDA scheme, any individual, including poor or those from weaker section of the society, can open zero balance account in any bank. ii. The services available free in BSBDA scheme include deposit and withdrawal of cash; receipt/credit of money through electronic payment channels or by means of deposit / collection of cheques at bank branches as well as ATMs cards. iii. If a customer has any other existing savings account in that bank, he or she will be required to close it within 30 days from the date of opening a BSBDA. iv. The aim of introducing BSBDA is part of the efforts of RBI for furthering financial inclusion objectives. There are 43 foreign banks with over 330 branches operating in the country.

3. Indias GDP growth likely to be at 5.2% in 2013: UNCTAD i. The Indian economy is likely to grow at 5.2 per cent in 2013 calendar year on the back of rising domestic demand, says a report by UN agency UNCTAD. ii. In its release of Trade and Development Report 2013, the United Nations Conference on Trade and Development (UNCTAD) said the Indian economy is expected grow at 5.2 per cent in calendar year 2013 as against 3.8 per cent in 2012. iii. UNCTADs India growth forecast at 5.2 per cent for 2013 is however lower than the International Monetary Funds projection of 5.6 per cent for the year. iv. In case of China, the UNCTAD report said, the growth rate is expected to moderately decline to about 7.6 per cent in 2013 from 7.8 per cent last year. v. Developing countries may grow at a rate of 4.5-5 per cent in 2013. Note: i.RBI recently in its quarterly review has scaled down the growth projection for the current fiscal to 5.5 per cent from its earlier estimate of 5.7 per cent. ii. Last month, the Asian Development Bank lowered its growth projection for India to 5.8 per cent in calendar 2013 from 6 per cent estimated earlier, citing the slow progress of economic reforms. iii. International Monetary Fund outlook projects Indias economic growth at 5.6 per cent this year. 4. IIP up by 2.6%, Retail inflation eases to 9.52%

i. The industrial output for July grew by 2.6 percent over the corresponding month of the previous year, government data showed on Thursday; The factory output, measured in terms of Index of Industrial Production (IIP), however, contracted 2.2 percent in June. ii. The three sectors that constitute the index are mining, manufacturing and electricity. The indices of industrial production for the mining, manufacturing and electricity sectors for the month of July 2013 stood at 117.0, 182.7 and 164.5, respectively. iii. The cumulative growth for the April-July period this fiscal over the corresponding period of the previous year is a contraction by 0.2 percent. iv. However, there was no reprieve in vegetable prices as they increased by 26.48 per cent as against inflation of 16.4 per cent in July. Though there was softening in the prices of fruits in August month-on-month.

5. ADB funds to flow into Agartala water pipelines

i. A project with funds provided by the Asian Development Bank (ADB) would overhaul the entire 53-year-old water supply system in Tripura capital Agartala, officials said here on Saturday. ii. "The ADB has recently sanctioned the Rs.130 crore project to replace the 408-km water supply pipelines, commissioned in 1960," Tripura's Urban Development Secretary Ashutosh Jindal told reporters. iii. The 142-year-old Agartala Municipal Council, which will implement the ADB project, is in the process of becoming a corporation. iv. The ADB-assisted North Eastern Region Urban Development Programme will be implemented in Shillong (Meghalaya), Aizawl (Mizoram), Kohima (Nagaland) and Gangtok (Sikkim) besides Agartala. v. With a population of little over four lakh, capital Agartala was founded in 1838 by then king Maharaja Krishna Kishore Manikya (1830-49). Tripura was a princely state until its accession to India in October 1949. 6. World Economic Forums summer Davos opens in China

i. The World Economic Forums summer Davos opened in the north-eastern Chinese city of Dalian on Wednesday with a focus on meeting the innovation imperative in Asia. ii. Chinese Premier Li Keqiang was scheduled to deliver a keynote speech on the ruling Communist Partys planned economic reforms later Wednesday. iii. Innovation will play an increasingly important role in driving transformation, and this can only come about through growth that is inclusive of all stakeholders in society, Schwab told the governments Xinhua news agency. iv. More than 1,500 delegates were scheduled to attend the three-day forum, organisers said. 7. India tops BRICS in super-rich membership : World Ultra Wealth report 2013

i. India has recorded the largest increase in its Ultra-High Net worth Individual (HNIW) club among the BRICS nations in the last one year, with a total of 7,850 super rich people in the country, a report says.

ii. The study focuses solely on persons with a net worth of $30 million and above (after accounting for shares in public and private companies, residential and investment properties, art collections, planes, cash and other assets). iii. According to the World Ultra Wealth report 2013 by Wealth-X, a global wealth intelligence and prospecting company, India is home to as many as 7,850 high net worth individuals whose collective net worth is $935 billion. iii. A city-wise analysis shows that more than 90 per cent of Indias UHNW population live in top 10 cities including Mumbai, Delhi, Bangalore, Kolkata, Hyderabad, Chennai, Ahmedabad, Pune, Gurgaon and Jaipur. iv. Mumbai and Delhi, however, dominate with more than 50 per cent of the countrys UHNW population based in one of these two cities, the report said. v. BRICS comprises Brazil, Russia, India, China and South Africa. vi. Despite Indias 1.6 per cent population growth, the country added more UHNW individuals (120) than any other BRICS nations in the past 12 months, the WealthX report said. Note: India has also the highest number of female millionaires in the world as the country boasts of over 1,250 UHNW women with a combined fortune of $95 billion. 8. RBI: Don't use currency notes for making garlands

i. Making garlands of currency notes, a practice followed in Indian marriages and political rallies, has been sought to be discouraged by the Reserve Bank. ii. "The Reserve Bank of India has appealed to members of public not to use banknotes for making garlands, decorating pandals and places of worship or for showering on personalities in social events, etc," an RBI release said on Wednesday. iii. Such actions, it said, deface the banknotes and shorten their life. iv. "...banknotes should be respected as they are a symbol of the Sovereign and public should not misuse them, and help in increasing the life of banknotes," the RBI added. v. The Reserve Bank also stated that it has been taking all measures to supply clean banknotes across the country and urged the members of public to contribute their mite to its efforts in pursuing a "clean note policy" for the country. vi. There is no specific provision under the Banking Regulation Act, 1949, or under RBI Act, 1934 to check or prevent such misuse of currency notes.

9. India extends US$144mn credit line to Liberia

i. India on Wednesday extended a US$ 144 million line of credit to Liberia for development of power transmission and distribution projects to reduce the gap of power shortage in Liberia. ii. The two countries also agreed to set up a Joint Commission for deepening cooperation and economic engagements. Two MOUs were inked, including one on energy cooperation in oil and gas exploration. iii. The four pacts were signed after high-level talks between Prime Minister Manmohan Singh and visiting Liberian President Ellen Johnson Sirleaf in New Delhi on Wednesday. iv. New Delhi will also set up an IT Centre, a vocational training centre, a Farm Science Centre and a training centre for women in the field of solar energy in Liberia. 10. Russia Lifted Ban on Import of Non-Basmati Rice and Oilseeds from India i. Russia lifted the ban on import of non-basmati rice from India on 10 September 2013, which will eventually lead to an increase in the export of non-basmati rise from India. Russia also lifted the ban on the oilseeds apart from non-basmati rice. ii. India, at present, is the second largest producer of rice in the world with the output of 104.40 million tonnes in the 2012-13 crop year (July-June). iii. India exports a considerable quantity of basmati as well as non-basmati rice in foreign markets. The International Grain Council (IGC) in the recent past however estimated that the rice export of India in 2013-14 would be 8.5 million tonnes, which is around 10 percent lower than the 9.4 million tonnes exported in 2012-13. iv. The overall export of basmati rice to Russia was 789.19 tonnes during 2012-13 fiscal year before the imports were suspended. Note: i. It is important to note that the Russian Federation had imposed ban on these commodities in December 2012 because of the presence of khapra beetles pest in rice and aflatoxin contamination of peanuts. ii. Thereafter, from 23 June 2013 to 30 June 2013, Federal Service for Veterinary and Phytosanitary Surveillance (FSVPS) delegation from Russia inspected the processing units in India, which eventually led to a lift on the ban and resumption of the trade on these commodities between India and Russia. iii. It is important to note that khapra beetle, also known as Trogoderma granarium was discovered in certain consignments in early 2012. Khapra beetle is one of the most destructive pests of the world found in the stored products as well as seeds.

11. SBI not to give car loan if annual income less than Rs 6 lakh i. The eligibility limit for loan issuance for salaried individual for car purchase has been raised from Rs 2.5 lakh per annum to Rs 6 lakh per annum, as per the recent circular of the bank.

ii. For the SBI account holder, the limit has been raised to Rs 4.5 lakh per annum. iii. SBI currently offers car loans at an interest rate of 10.45 percent, as per the bank's website. iv. Giving the rationale for increase in the eligibility criteria, a senior bank official said the decision to revise upwards the gross income limit is taken in view of moderation in economy. 12. Aditya Birla Group to acquire Gujarat cement for Rs 3,800 crore

i. UltraTech Cement will acquire the Gujarat Cement Unit of Jaypee Cement Corp Ltd. Gujarat Cement Unit comprises of an integrated cement unit at Sewagram and grinding unit at Wankbori, the company said in a statement. ii. "With this acquisition of 4.8 million tons per annum, the company's current capacity increases to 59 million tons per annum. With projects underway it will stand raised to 70 million tons by 2015," UltraTech Cement Chairman Kumar Mangalam Birla said. iii. The proposed transaction is subject to approval of shareholders and creditors, sanction of the Scheme of Arrangement by the High Courts, approval of the Competition Commission of India besides other statutory approvals.

13. FDI up 6 pc to USD 10.87 bn in Jan-Jun 2013 i. Foreign direct investment (FDI) into India increased by 6 percent year-on-year to USD 10.87 billion during the first six months of this year. ii. According to data from the Department of Industrial Policy and Promotion (DIPP), the country had received USD 10.27 billion of FDI in January-June, 2012. iii. Sectors that received large FDI inflows include hotels and tourism, pharmaceuticals, services, chemicals and construction.

iv. Most of the inflows came from Singapore, Mauritius, the Netherlands and the US. v. India needs about USD 1 trillion to fund infrastructure such as ports, airports and highways to boost growth. vi. An increase in FDI will help support the rupee, which depreciated to a record low of 68.85 against the US dollar on 28th August. It will also help in bridging the ballooning current account deficit. 14. EPFO may approve 8.5% interest rate for 2013-14

i. Retirement fund body EPFO is likely to announce an interest rate of 8.5 percent on provident fund deposits for 2013-14 to its over five crore subscribers, the same as provided for last fiscal. ii. According to sources, the preliminary estimates indicate that the payment of 8.5 percent rate of interest will leave no deficit for the Employees' Provident Fund Organisation (EPFO) and could rather leave some surplus for the body. iii. EPFO paid 8.5 percent interest rate to its subscribers in 2012-13, which was higher than 8.25 provided in the 2011-12 fiscal. 15. Advantage Airtel, Vodafone as TRAI cuts spectrum base price by 60 %

i. The Telecom Regulatory Authority of India on Monday announced a huge bonanza for mobile operators with a 50-60 per cent reduction in the reserve price for various spectrum bands. ii. The regulator has also proposed to introduce a flat spectrum usage charge of 3 per cent of the annual revenue instead of the existing staggered payment system where operators with more spectrum have to pay a higher revenue share. iii. The TRAI has brought down the reserve price for the 1800 Mhz spectrum band to Rs 1,496 crore per Mhz pan-India. In November, spectrum in this band was sold at Rs 3,900 crore for each 1.25 Mhz pan India. I iv. In March, the reserve price for four circles, including Delhi and Mumbai, was brought down by 30 per cent but it found no takers. Therefore, TRAI has decided to bring down the price further. Delhi, for example, was priced at Rs 485 crore for each 1.25 Mhz slot and now the TRAI has proposed to sell this at Rs 175 crore for 1Mhz slot.

v. Now the regulator has proposed to fix the base price at Rs 288 crore for 1MHz spectrum in Delhi and Rs 262 crore in Mumbai. This will benefit incumbent players such as Airtel and Vodafone, who currently own this spectrum. vi. However, TRAI has not proposed any future roadmap for CDMA players, including Sistema Shyam and Reliance Communications. The TRAI has not specified any fresh base price for the CDMA spectrum. vii. The TRAI proposals will now be considered by the Department of Telecom before it is finalised by the Empowered Group of Ministers. 16. Centre to launch Rajiv Awas Yojana soon i. Government will soon launch Rajiv Awas Yojana (RAY) to make the country Slum Free. ii. Addressing a Press conference in New Delhi today, Minister of Housing and Urban Poverty Alleviation Dr. Girija Vyas said that the implementation phase of the Scheme will be run on a mission mode during 2013-2022. iii. She said the Government has approved 32,230 crore rupees for the implementation of the scheme during 12th Five Year Plan. iv. This programme will cover all towns, cities and urban agglomerations in the country during its implementation phase. 17. Agartala to get Countrys first broad gauge by 2016

i. North-East Frontier Railway will bring Agartala in the country's broad gauge rail network by 2016. ii. "Agartala is scheduled to get broad gauge facility by March 2016," NFR Chief Engineer (Construction) Harpal Singh said. iii. "If the required fund is available, NFR will be able to extend the broad gauge rail connectivity to Agartala within the stipulated time," he said. iv. Works for conversion in BG a small meter gauge track from Lumding to Silchar in Assam was in full swing and likely to be completed by March 2015, Singh said.

18. RBI issues norms for currency swap window

i. In a notification issued from Mumbai on Friday, RBI has said that swap facility will be available to scheduled commercial banks for fresh foreign currency non-resident bank FCNR(B) deposits mobilized for a minimum tenor of three years. iii. RBI has said that the deposits raised may be in any permitted currency, but the swap would be available only in dollars. iv. Although the swap window will be operated on a daily basis on all working days in Mumbai, a particular bank can avail of the swap facility only once in a week. 19. RBI to issue inflation-indexed savings certificates

i. The Reserve Bank of India will issue inflation-indexed savings certificates which will be linked to Consumer Price Index (CPI) by November 2013 as a means to protect households against inflation. ii. Governnor Raghuram Rajan announced this Wednesday, saying the need of the hour is to protect households from inflation. iii. For eaxample, there will also be a Giro-based bill payment system where households can pay utility bills, school fees etc. anywhere and at any time. iv. Second, White-label ATMs will also be increased pan-India. v. Three, pre-paid cards will be used for remittances and cash payments along with Aadhaar. vi. And fourth, the RBI will explore mobile-based payments where encrypted SMS can be used for fund transfers and mobile payments across telecom service providers and handsets. vii. Rajan said the RBI will shortly issue the necessary circular to completely free bank branching for domestic scheduled commercial banks in every part of the country. 20. RBI to set up panel on mobile-based payments: Rajan i. The Reserve Bank of India (RBI) will soon set up a committee to examine feasibility of encrypted SMS-based fund transfers. ii. There is substantial potential for mobile based payments. We will set up a technical committee to examine the feasibility of using encrypted SMS-based funds transfer using an application that can run on any type of handset, Rajan said at his first news conference after taking over as the 23rd governor of the country's central bank. iii. We will also work to get banks and mobile companies to cooperate in rolling out mobile payments. Mobile payments can be a game changer both in the financial sector as well as to mobile companies, Rajan added. iv. "The rapid growth of mobile users in India, through wider coverage of mobile phone networks, has made this medium an important platform for extending banking services

to every segment of banking clientele in general and the unbanked segment in particular, the RBI had said. 21. RBI allowed the Non-Resident Investors to buy Shares under FDI Scheme i. The Reserve Bank of India on 6 September 2013 allowed the Non-Resident Investors including NRIs to purchase shares of Indian entities Under FDI Scheme. ii. The investment can be made as per the mentioned conditions. RBI has allowed the NRIs to make investment under the FDI scheme only on the listed entities, on recognized stock exchanges. iii. The Reserve Bank of India has decided to include the non-residents, including the NRIs to acquire the shares of domestic companies listed under FDI scheme, on the stock exchanges through a registered broker, if the investor has already acquired and continues to hold control in accordance with SEBI, Substantial Takeover Code. iv. RBI has also cleared that the inward remittance using the normal banking channels can be used for payment of the transfer of shares to non-residents consequent to purchase. v. The debit to the NRE pr FCNR account of a person with authorized dealer or bank can also be considered for making the payment of the transferred shares. vi. Escrow Accounts (non-interest bearing) maintained in India can also be used to debit the payment. vii. The prices of the transfer of the shares for the non-resident shareholders would be made in accordance to the pricing guidelines mentioned under, FEMA. Note: Till now, the FIIs (Foreign Institutional Investor), QFIs (Qualified Foreign Investors) and NRIs were eligible to invest and acquire the shares on the recognized stock exchanges of India in compliance with the FEMA (Foreign Exchange Management Act) regulations. But the NRIs were not allowed to acquire shares on exchange (bourses) under the FDI Scheme. 22. RBI Revised Gold Import Norms to Contain CAD i. To contain the current account deficit, RBI announced some measures to curb the demand for gold in the month of September 2013 considering one of the major reason for widening the current account deficit. ii. Supplies of the metal to special economic zones (SEZs) will not be counted as exports to qualify for further purchases from overseas. iii. As per the existing norms, 20 percent of every lot of imported gold has to be made exclusively available for the purpose of exports. iv. Gold made available by a nominated agency to units in the SEZ and export oriented units, Premier and Star trading houses shall not qualify as supply of gold to the exporters. v. RBI announced that entities and units in SEZs and EoUs, Premier and Star trading houses are permitted to import gold exclusively for the purpose of exports.

vi. The government aims to bring it down to USD 70 billion in 2013-14 fiscal from 88 billion US Dollar in 2012-13. Gold imports in April-July 2013 rose 87 percent to 383 tonnes. 23. Muthoot to set up first ATM next month

i. The Foreign Investment Promotion Board has cleared gold-loan company Muthoot Finances proposal to set up white-label ATMs in the country. ii. Muthoot, which had received the RBI nod for the plan in June, is expected to set up its first batch of ATMs next month in one of the southern States. iii. The company, which has also sought RBIs permission to set up a bank, has plans to establish 9000 ATMs across the country in the next three years. The first 1000 would be set up in the next one year. iv. A company press note said 65 per cent of the ATMs would be located in semiurban and rural areas in order to increase financial inclusion. v. The white-label would be of different types: standalone, through-the-wall, drive-in, mini and moving ATMs. They would be placed at strategic locations such as shopping areas, bus-stands, cinema theatres and schools. vi. White-label ATMs will not sport the label of any bank and each transaction will be charged a small fee. An ATM costs Rs 5-6 lakh and the operating cost is upwards of Rs 10,000 a month. NOTE: i. Tata Communications Payment Solutions (TCPS), a wholly owned subsidiary of Tata Communications, is the first company to launched first white label ATM (WLA) at Chandrapada, a tier-V town near Mumbai. ii. It has been branded 'Indicash' by the company. iii. TCPS has got the license from Reserve Bank of India (RBI) to launch white label ATM operations last month under scheme B of the central bank. iv. In scheme B the WLA licensee has to setup a minimum of 5,000 ATMs per year for three years. In this scheme for every two ATMs installed in tier-III to tier-VI centers the company will be able to install one ATM in tier-I and tier-II centers. 24. SEBI bars 34 entities from capital market for fraudulent dealings in the shares of 12 companies i. SEBI has barred 34 entities from the capital market for fraudulent dealings in the shares of 12 companies. It has also restrained the main conspirator of the alleged manipulative trades, Sunil Mehta from accessing the securities market for a period of seven years.

ii. In a statement issued in Mumbai, SEBI said that 13 entities have been barred for five years as they had played an active role in the manipulation and were found to be directly connected with Mehta. iii. The regulator had probed the irregularities in stock trading of the 12 firms from 1st March to 15th December, 2009 and found huge changes in prices of these shares. iv. The remaining entities have been restricted from accessing the securities market for a period of three years. 25. Rs. 100 cr. sanctioned for training gram panchayat members Rajiv Gandhi Panchayat Sashaktikaran Abhiyan to go on stream i. The Karnataka State government will implement the Rajiv Gandhi Panchayat Sashaktikaran Abhiyan (RGPSA) for strengthening gram panchayats and gram sabhas by providing training to members. ii. A sum of Rs. 100 crore has been allocated for its implementation in this financial year. iii. With panchayats playing a key role in rural governance and socio-economic development, the RGPSA is aimed at providing training to gram panchayat members and officials of various departments at the gram panchayat level for the effective implementation of a 15-point programme of the government. iv. Under the programme, members of gram panchayats and gram sabhas would be provided with technical and administrative support. Steps would be taken to e-enable the members and strengthen infrastructure, promote devolution and improve the functioning of the members. v. Under the scheme, 20 per cent funds are linked to States performance on devolution and accountability. States prepare perspective and annual plans to access funds under the scheme. 26. After Vibrant Gujarat, it is Vivah now, Kisan next week! i. After Gujarat Chief Minister Narendra Modi launched the biennial Vibrant Gujarat Global Investors Summit in 2003, the very word vibrant has gone viral across the State and event organisers continue to tag their programmes with this word to cash in on its appeal . ii. On Friday, actor Karishma Kapoor inaugurated the three-day Vibrant Vivah, claimed to be Indias largest wedding festival, in Ahmedabad. State Tourism Secretary Vipul Mittra was the guest of honour on the occasion. iii. In Gujarat, such a large exhibition on the theme of weddings has been organised for the first time. Gems and jewellery, boutiques, wedding dress designers, contemporary fashion, tours and travels, wedding destinations, mehendi, tattoo and nail artists, wedding cards and gifts, spas and beauticians, hair artists and saloons are all there. iv. More than selling and buying, Vibrant Vivah is an effort to bring together the culture, traditions, products and services related to Indian wedding under one roof, said Paras Patel, Director, Praveg Communications, the organisers.

27.

India,

Japan

to

enhance

currency

swap

arrangement

to

USD

50

bn i. India and Japan have decided to more than triple their bilateral currency swap arrangement to USD 50 billion, a development that is likely to bring stability in financial markets in the country. ii. Indian and Japanese governments have decided to expand their bilateral currency swap arrangement from USD 15 to USD 50 billion. iii. It is expected that this will contribute to the stability of financial markets," the Reserve Bank said in a statement on Friday. iv. The central government and the RBI will discuss and finalise the terms of the enhancement of the swap arrangement with their Japanese counterpart. v. Earlier in December 2012, the two countries had entered into a bilateral currency swap arrangement for USD 15 billion. vi. Earlier, the two countries had a similar arrangement for USD 3 billion for three years from June 2008. vii. The rupee had almost touched the low of 69 against the US dollar last month on the back of huge capital outflows and high current account deficit. 28. Global Competitiveness Report: India slips to 60th rank i. India has slipped to 60th position in terms of its competitiveness globally, while Switzerland has retained its top rank. ii. This is India's lowest ever rank and also 31 places below its peer emerging market China. iii. Releasing the annual Global Competitiveness Report 2013-2014, Geneva-based World Economic Forum (WEF) today said highly innovative countries with strong institutions continue to top the rankings. 29. ICICI Bank takes banking to remote areas with Branch on Wheels

i. ICICI Bank, the countrys largest private sector bank, launched its Branch on Wheels to offer basic banking services in r emote areas which have so far been devoid of banking facilities. ii. The mobile branch, which also has an ATM, will offer basic banking products and services such as savings accounts, loans, cash deposit/withdrawal, account balance

enquiries, statement printing and funds transfer/DD/PO collection, among others, the bank said in a statement. iii. The mobile branch will be operated at a specific time in pre-identified, unbanked villages through a van that will be stationed at specified locations. iv. The truck will be equipped with a GPS tracking system, laptops with 3G connections, LED TV, a safe, a printer, public announcement system, a UV lamp to detect forged cheques, a note counting-cum-authentication machine that would identify fake currency notes and a low weight ATM. Two ICICI Bank officials and a guard would manage the mobile branch with ATM. v. ICICI Bank has launched 308 Gramin (rural) branches across the country and plans to scale this up to 500 this fiscal, said Rajiv Sabharwal, Executive Director. 30. IRDA may allow savings-linked health plans

i. You may soon be able to build a savings corpus in your health insurance plan. ii. To enhance the reach of health insurance as well as provide wider product choice to policyholders, the Insurance Regulatory and Development Authority (IRDA) is considering a proposal to allow general insurers to launch savings-linked health insurance products. iii. Some general insurance have already approached the regulator to allow them to launch these products, whereby a part of the premium paid will be used to build a savings kitty. iv. However, such health-plus-life products have not really taken off as insurance companies have not been able to get their actuarial departments to address the issue of plan period health insurance contracts are usually for a year, while term plans are long term. Note: i. Currently, savings-linked plans are only offered by life insurance companies in India. ii. The proposed plan is expected to help policyholders choose an integrated product without shopping around the market for building a savings corpus along with health insurance. 31. Raghuram Rajan takes over as RBI Governor

i. Raghuram G. Rajan took over as the 23rd Governor of the Reserve Bank of India today. The 50-year-old economist took charge from D. Subbarao. ii. The duo shook hands warmly and hugged after Rajan signed a 65-year-old scroll, made of toughened paper, that bears the signatures of all governors and deputy governors of RBI. iii. An alumnus of IIT Delhi (1985) and IIM Ahmedabad (1987), Rajan has taken over from D. Subbarao whose five-year term ended today. iv. He was earlier Chief Economic Advisor, Ministry of Finance, a post that he held for about a year. v. Earlier, he has also been Chief Economist of the International Monetary Fund and Professor of Finance at the Booth School of Business at the University of Chicago. 32. RBI eases ECB norms

i. In order to encourage capital flows, the RBI today eased the External Commercial Borrowing, ECB norms by allowing companies to use funds raised from foreign partners for general corporate purposes. ii. On a review, the apex bank has decided to permit eligible borrowers to avail of ECB under the approval route from their foreign equity holder company with minimum average maturity of 7 years for general corporate purposes. iii. Till now borrowings in the form of ECB were not permitted to be utilised for general corporate purpose. However, the RBI has put certain conditions for availing the benefits of relaxed norms. iv. The RBI said,minimum paid-up equity of 25 per cent should be held directly by the lender. Also, repayment of the principal will commence only after completion of minimum average maturity of seven years and no prepayment will be allowed before maturity. v. The measure is aimed at encouraging capital inflows and arresting the decline in rupee value. vi. Capital outflows have caused volatility in the stock market, as the benchmark S&P BSE Sensex yesterday fell 651 points. vii. The rupee had touched an all time low of 68.80 against the US dollar last month.

33. Sixth Global Skills Summit held i. The HRD Minister Dr. M M Pallam Raju today inaugurated the Sixth Global Skills Summit (GSS) at FICCI on 4th September. ii. This two day FICCI annual event is being organized in collaboration with Ministry of Human Resource Development, Ministry of Labour and Employment and National Skill Development Corporation (NSDC). iii. New Zealand is the country partner this time for the Summit. iv. The Theme of the Summit is Industry Leads.

34. G-20: Leaders's Summit to be held in St. Petersburg

i. The G20 Leaders' Summit, to be held in St. Petersburg on September 5-6, 2013, will be the main G20 event of 2013. ii. In an innovative measure to ensure realistic views on employment opportunities, public officials from different countries will work together. This new approach will help connect macroeconomic and financial policy issues with the tasks of social protection and creation of more jobs, as well as enabling discussion of measures to promote the employment of youth and vulnerable categories of people. iii.The dialogue between all interested parties and countries which are not G20 member states, regional alliances and international organizations, business, trade unions, civil society, youth and expert centres have been taken up to improve transparency. iv. The present chair Russia is likely to come up with a report on the meeting of objectives in promoting development that G20 had previously undertaken . 34. Microsoft to acquire Nokia's handset biz for USD 7.17 bn

i. Software giant Microsoft said it will acquire Finnish handset maker Nokia's handset business for 5.44 billion euros (USD 7.17 billion) in cash, in an effort to strengthen its position in the smartphone market. ii. Under the terms of the agreement, Microsoft will pay 3.79 billion euros to purchase all of Nokia's devices and services business and 1.65 billion euros to getting access to Nokia's patents a total of 5.44 billion euros in cash, Microsoft said in a statement on Tuesday. iii. Microsoft will draw upon its overseas cash resources to fund the transaction. iv. The deal is expected to close in the first quarter of 2014, subject to approval by Nokia's shareholders, regulatory clearances and other closing conditions, it added. v. The acquisition will also include licence and use of Nokia's mapping services.

vi. In July 2011, Nokia had announced that it would partner Microsoft to use its Windows software for its Lumia range of smartphones. 35. 3rd India-Republic of Korea Foreign Policy and Security Dialogue held in Seoul i. The 3rd India-Republic of Korea (ROK) Foreign Policy and Security Dialogue (FPSD) was held in Seoul on 2 September 2013. ii. Both nations discussed ways to further expand and deepen their Strategic Partnership. They undertook a comprehensive review of bilateral ties, including in the fields of economic collaboration, defense and security cooperation, cultural exchanges and people-to-people contacts. In this context they discussed the potential for space and nuclear cooperation, upgrading of the bilateral Comprehensive Economic Partnership Agreement and collaboration in defense production. iii. They agreed to step up cooperation in the spheres of maritime and cyber security. iv. The two sides discussed the possible outcomes from the forthcoming visit to India of the President of ROK, H.E. Madame Park Geun-hye. v. Discussing regional and international subjects of mutual interest, India and Korea agreed to step up coordination on East Asian regional issues. The ROK side provided a briefing on the situation in the Korean Peninsula. Views were also exchanged on the recent developments in Afghanistan. vi. It was agreed that the 4th India-ROK Foreign Policy and Security Dialogue will be held at New Delhi at a mutually convenient time in 2014. 36. HSBC cuts Indias GDP growth forecast to 4%

i. HSBC has lowered Indias GDP forecast for the current financial year to 4 per cent from 5.5 per cent earlier saying economic uncertainty is likely to weigh on the growth forecast in the coming months. ii. According to the global financial services major, growth is likely to slow in the near term due to tighter financial conditions and higher macroeconomic uncertainty. iii. In light of this, we revise down our GDP growth forecast to 4.0 per cent (5.5 per cent) for FY2014 and to 5.5 per cent (from 6.6 per cent) for FY2015, HSBC said in a research note today. iv. According to official figures, the countrys economic growth for the April -June quarter slid to 4.4 per cent, the lowest in past several years, due to a sharp fall in mining and manufacturing output. v. HSBC, however, believes the slowdown has further to go, saying leading indicators suggest the countrys growth momentum could ease further during the July-September quarter in both manufacturing and services sectors. 37. HDFC Bank launches rural financial literacy initiative in Gujarat

i. HDFC Bank Ltd on Monday launched its rural financial literacy initiative in Koteshwar village near here under the aegis of the Reserve Bank of India, becoming the first bank to translate curriculum into Gujarati language. ii. Under the initiative, it will conduct literacy camps at 68 branches across 136 villages, reaching out to both adults and school children in the State. iii. It complements HDFC Banks efforts to support inclusive growth and take formal banking services to the remote corners of India. iv. Through this initiative, the bank will conduct a series of three literacy camps in every village, and each rural branch will hold this programme in two neighbouring villages over the next year. v. These camps will give participants a conceptual understanding of financial products and services using material provided by the RBI. vi. HDFC Bank will use the financial literacy guide and posters as standard curriculum at these camps. vii. HDFC Bank has a board-mandated objective to bring 10 million families (40 million Indians) into the banking fold, said Ravi Narayanan, Regional Branch Banking Head, HDFC Bank. viii. HDFC Bank now has 270 branches in Gujarat, of which 71 are located in rural areas and an additional 100 are located in semi-urban areas. Across India, 53 per cent of all branches in its network are located in semi-urban and rural areas. As of June 30, the bank had a national distribution network of 3,119 branches and 11,088 ATMs in 1,891 cities/towns. 38. India announced an aid of 5000 crore rupees to Bhutan i. India announced an aid of 5000 crore rupees to Bhutan. The aid includes economic stimulus package of 500 crore rupees. ii. The decision to provide an aid to Bhutan was taken by the Manmohan Singh, Prime Minister of India after his talk with his Bhutanese counterpart Tshering Tobgay at New Delhi iii. The Butanese Prime Minister is on six day visit to India and during this visit issues related to political security, developmental assistance and matters of mutual concern was also discussed between the two nations to strengthen bilateral relations. iv. During the meet, the India also ensured the Bhutanese Prime Minister about its commitment to install an additional 10000 Mega Watt of power generating capacity in Bhutan. At present three Indian projects are under process in Bhutan.

39. Micromax becomes the number two smartphone vendor in India

i. Micromax continues to expand its hold in the Indian smartphone market and has now acquired 22 percent of the Indian market share in the second quarter according to the latest IDC numbers. ii. he domestic vendor shipped over 2 million smartphones and has witnessed a growth of more than 4 percent in Indian market, from 18.8 percent recorded in first quarter to 22 percent in the second. iii. Samsung currently leads with 26 percent of the market share in India. Micromax is claiming it could topple Samsung to become Indias largest smartphone vendor in the next quarter. iv. Micromax now aims to cross $1 billion revenue mark through its new products, distribution and marketing strategies. v. Micromax is known for affordable mobile devices including smartphones, phablets, and tablets and has recently launched Canvas Doodle 2, which at Rs 19,990 is the companys costliest offering so far.

40. RBI allows premature encashment of 8 per cent Savings (Taxable) Bonds for individual senior citizen investors above 60 years

i. The Reserve Bank of India, RBI, has permitted premature encashment of 8 per cent Savings (Taxable) Bonds for individual investors who are 60 years and above. ii. In a press release in Mumbai, RBI said the facility would be available after a minimum lock-in period of three years from the date of issue. iii. In case of joint holders, any one of the holders should fulfill the conditions of eligibility. It however clarified that partial encashment of amount invested on a single application will not be permitted. iv. The RBI has also directed Urban Co-Operative Banks to stop giving donations to trusts and institutions where the banks directors or their relatives hold positions or have interests. 41. Gram panchayats to get broadband speed of up to 100 mbps: Sibal

i. Gram Panchayats will get broadband speed of up to 100 Mbps under a government project that aims to connect all 2.5 lakh panchayats in the country over the next two years, Parliament was informed on Friday. ii. Telecom Minister Kapil Sibal said: Government has approved National Optic Fibre Network (NOFN) which plans to connect all Gram Panchayats in the country through optic fibre cable... Dark fibre network thus created will ensure a bandwidth of at least 100 Mbps at each gram panchayat, iii. With such high speed broadband networks, people will be able to see videos on Internet as clearly as seen on TV and make video calls, among other things. iv. Such networks can also help train and educate people using broadband connected to the computer through live and interactive video sessions. v. Mr. Sibal said the project will be financed by Universal Service Obligation Fund at an initial estimated cost of Rs 20,000 crore. vi. Around 5,000 gram panchayats are likely to be connected with optical fibre connectivity by December 31, 2013. vii. Under NOFN, all gram panchayats are expected to be provided with optical fibre cable in a span of two years. This will enable various service providers to launch various broadband Internet and communication services, Mr. Sibal said

42. India's economic growth slumps to 4.4 percent

i. India's economic growth slumped to 4.4 percent during the quarter ended June 30, due to poor showing of manufacturing, mining and agriculture sectors, government data showed Friday. ii. The manufacturing sector contracted by 1.2 percent while mining sector contracted by 2.8 percent. iii. The services sector registered a healthy 9.4 percent growth in the April-June quarter of the current financial year, data released by the Central Statistics Office (CSO) said. 43. Indonesia, Pakistan sign free trade pact

i. Indonesia and Pakistan have signed a free trade agreement (FTA) and expect to take their bilateral trade to $2 billion by next year. ii. "After the implementation of the free trade agreement with Pakistan, trade growth is to be significant this year and may reach between $100-200 million from crude palm oil, footwear, garments, papers and coal commodities. iii. We are seeing potential trade growth between $1.5-2 billion next year," Xinhua quoted Indonesia's Deputy Trade Minister Bayu Krisnamurthi as saying. iv. Bayu said the two countries have agreed to put food products trade under the FTA programme, and added that Pakistan had proposed to sell its horticulture products of Kino oranges in Indonesia with special tariff during the initial FTA programme implementation period. v. The pact is expected to take effect from early September. 44. Syndicate Bank workmen employee director i. Syndicate Bank has appointed Sankaran Bhaskar Iyer as workmen employee director on the board of directors for three years from the date of his taking over charge of the post on or after August 31. 45. RBI looking into the issue of SBI shaming students

i. The Reserve Bank of India (RBI) is looking into the complaint against State Bank of India (SBI) for shaming students and their parents for defaulting on their education loan. ii. "RBI's assistant general manager Sharmila Sampath Kumar has sent me an email Aug 28 stating that the issue is receiving the attention of the central bank," K. Srinivasan, convenor, Education Loan Task Force (ELTF). iii. ELTF guides students on rules and regulations governing the education loans offered by nationalised banks. It also insists that students repay their dues. iv. The Bodinayakanur branch of SBI in Theni district, 515 km from here, displayed photos of students and their parents for defaulting on their educational loans. v. Several political parties like DMK, CPI, VCK and others had condemned the SBI's action. 46. RBI opens special dollar window for 3 oil marketing firms

i. To take the pressure off the rupee due to unrelenting demand for the dollar, the Reserve Bank of India has opened a special window to meet the entire daily dollar requirements of three public sector oil marketing companies. ii. In the backdrop of the domestic currencys plunge, the central bank has activ ated the forex swap window, whereby it will undertake sell/buy of dollar-rupee forex swaps for a fixed period with Indian Oil Corporation, Hindustan Petroleum and Bharat Petroleum through a designated bank. iii. A forex swap entails simultaneous purchase and sale of identical amounts of one currency for another with two different value dates (normally spot to forward). iv. Forex dealers say with the oil companies dollar demand getting quarantined, the rupee should stabilise. In a late evening statement, the RBI said the swap facility, operational immediately, will remain in place until further notice. 47. Shome to head panel on tax policies i. The government has set up a 7-member Tax Administration Reform Commission (TARC) which will be headed by Parthasarathi Shome. ii. The TARC will revisit tax laws and suggest measures for putting in place a stable and non-adversarial tax administration.

Some other key tasks will be: i. Review the current mechanism of dispute resolution covering time and compliance cost and recommend steps for strengthening them for both domestic and international taxation. ii. Suggest a system to enforce better tax compliance by size, segment and nature of taxes and taxpayers, that should cover methods to encourage voluntary tax compliance. iii. Reviewing the existing mechanism and recommend measures for deepening and widening the base of tax and taxpayers. 48. SIDBI, Franchise India tie up to fundfranchisee business i. Small Industries Development Bank of India (SIDBI) has joined hands with Franchise India to provide financial support to emerging and established franchisors in India. ii. The tie-up is expected to enable SIDBI create a sustainable and robust financing model for the franchise industry, N.K.Maini, Deputy Managing Director, SIDBI, said. iii. The SIDBI-Franchise India programme has been instituted as a funding initiative to make the franchising model of business less daunting for aspiring entrepreneurs. iv. Currently, financing is very difficult as the franchisees are often not able to provide any collateral, it was pointed out.

v. From 1.4 per cent of GDP at present, the franchise industry is likely to account for 4 per cent of GDP by 2017, says a recent report by KPMG. vi. The current association with SIDBI is a win-win for both the development bank and Franchise India as the availability of finance would help the latter sell more franchises, said Gaurav Marya, Chairman, Franchise India. 49. Nabard sanctions Rs 113.70 cr to Karnataka under RIDF

i. The National Bank for Agriculture and Rural Development (NABARD) has sanctioned Rs 113.70 crore to Karnataka under Rural Infrastructure Development Fund (RIDF). ii. NABARD has also allocated Rs 900 crore for various rural and agricultural infrastructure projects in the state. 50. Wipro launches aviation IT products with Qatar Airways

i. Wipro in partnership with Qatar Airways today announced the launch of a range of information technology products for the aviation industry. ii. In September 2012, Wipro entered into a partnership with Qatar Airways to research and develop the portfolio. iii. The aviation IT product portfolio comprises two categories of solutions: enterprise and mobility solutions, the Bangalore based company said in a release. iv. The company said extensive product portfolio aims to address critical airline business functions, which have a direct bearing on service quality, operational efficiency and strategic decision making. v. Enterprise solutions include products for crew management, route profitability analysis, loyalty management, in-flight catering, aircraft maintenance planning and crisis management; while mobility solutions include products for pilots, cabin crew and flight dispatchers. 51. RBI pitches for stringent entry norms for new banks

i. The Reserve Bank of India (RBI) has pitched for stringent entry norms for new banks while suggesting four- tier structure for the domestic banking industry. ii. The Central bank said that this is important in order to improve the quality of the banking system and promote competition. The RBI yesterday released a discussion paper titled Banking Structure in India - The Way Forward. iii. In the proposed four-tier system, the Reserve Bank has proposed a top tier consisting of 3 to 4 large banks with presence both in the country and outside, along with foreign bank branches. iv. The tier two will consist of mid-sized banks with economy wide reach and will be followed by a category devoted to old sector private banks, regional rural banks and multi-state cooperative banks. The final tier will consist of privately owned local banks and cooperative banks. v. On consolidation, the RBI stressed the need to take a measured approach based on synergies and insisted on not making it compulsory. vi. It said differentiated licensing" for infrastructure financing, wholesale banking and retail banking is a desirable step and there is also a need to promote investment banking system. vii. RBI said the discussion paper has been necessitated given the changing needs of the increasingly globalising economy, providing specialised services and deepening financial inclusion. 52. Govt sets up task force for currency swap arrangement

i. Rattled by the continued decline in the value of rupee, the Commerce and Industry Ministry has constituted a task force comprising representatives from the Ministry, Department of Economic Affairs, Reserve Bank of India (RBI), SBI, industry bodies FICCI, CII and Federation of Indian Exporters Organisation (FIEO) to work out currency swap arrangements with key trading partners of India. ii. An official statement said that in view of the rising trade deficit and consequent CAD, a need has been felt to examine the role of currency swap arrangement/agreements in order to suggest a possible mechanism to address the issue. It has been decided to constitute a Task Force. iii. The task force will restrict itself to issues pertaining to the swap of national currency for trade purpose only. The purpose of the task force is limited to examine swap of national currency for trade which is distinct from currency swap agreements of Central Banks, the official statement said. iv. The Task Force will examine various types of such arrangements and their implication for Indias trade and financial system besides studying the pros and cons of such pacts.

v. It would also explore the possibility of currency swap agreement between India and identified countries and make recommendations accordingly. NOTE: i. Currency swap has emerged as an important derivative tool after the global financial crisis of 2008 to hedge the exchange rate risks. ii. India has signed currency swap agreements with Japan ($15 billion) and Bhutan ($100 million). iii. China has shown active interest in entering into such an agreement with India, but it is yet to be signed. 53. SBI to merge one associate bank this fiscal: Pratip Chaudhuri i. State Bank of India on Tuesday said it may merge one of the five associate banks in the current fiscal.

ii. Right now we are in a position to merge one of the subsidiaries.... We may merge one associate bank this year, SBI Chairman Pratip Chaudhuri told PTI in New Delhi. iii. SBI first merged its associate State Bank of Saurashtra with itself in 2008. Two years later in 2010, State Bank of Indore was merged with SBI. iv. The countrys largest lender has five associate banks State Bank of Bikaner and Jaipur, State Bank of Travancore, State Bank of Patiala, State Bank of Mysore and State Bank of Hyderabad.

v. Among these, State Bank of Bikaner and Jaipur, State Bank of Mysore and State Bank of Travancore are listed entities. vi. SBI raised the money through a preferential allotment of shares to the government, through which the state holding in the bank increased to 62.3 per cent from the earlier 61.6 per cent. vii. The government has already announced that the public sector banks will get Rs. 14,000 crore additional capital from government during the current fiscal. viii. The government had infused about Rs. 20,117 crore in public sector banks during 201011, and Rs 12,000 crore in 2011-12.

50. ADB to provide $18.4 mn for post harvest facility in Gujarat

i. In its first ever loan to private agri-business in India, Asian Development Bank (ADB) will provide $ 18.4 million to Champion Agro to set up cold storage facilities for fruits and vegetables focusing on Gujarat. ii. Up to 6,000 farmers in Gujarat could attain higher revenues from t heir crops with the construction of cold storage facilities for fruits and vegetables by Champion Agro using $ 18.4 million in funding from Asian Development Bank, ADB said in a release. iii. The project will include five collection centres, a controlled-atmosphere cold storage facility, and an individually quick frozen facility in Gujarat, as well as five distribution centres located in large cities in different states of northern India. iv. The ADB project is expected to improve the processing and distribution of quality fruits and vegetables sourced from local farmers as well as help them increase their yields through irrigation facilities. v. The loan funding will support distribution to food wholesalers and processors in India as well as abroad vi. Champion Agro provides agri-business services such as irrigation system, agricultural inputs to retail malls and farming with about 17,000 hectares under lease and contract farming. 51. Additional pension for 80 year old retired Retired All India Services Govt officials

i. Retired All India Services (IAS, IPS and IFoS) officials will get 20 per cent of additional pension after completing 80 years of age, according to new rules notified by the central government. ii. According to the amended rules, this extra pension will also be increased after every five years and retired bureaucrats will get 100 per cent of such additional benefits, other than the regular pension drawn by them, after they complete 100 years of age. iii. Such retired Government officials will get 20 per cent of additional pension after they complete 80 years of age, 30 per cent of after completing 85 years, 40 per cent after crossing 90 years of age, 50 per cent after reaching 95 years and 100 per cent of additional pension after completing 100 years of age, says the amended All India Services (Death-cum-Retirement Benefits) Rules, 1958.

iv. The rules have been notified by the Ministry of Personnel, nodal authority to decide on personnel matters related to All India Services comprising Indian Administrative Service (IAS), Indian Police Service (IPS) and Indian Forest Service (IFoS). v. The changed rules provides the same benefits for the spouse or next of kin of a Government officials getting family pension. vi. As per norms, a retired Government official is entitled to get 50 per cent of average emolument as pension on the basis of last pay drawn. vii. Minimum pension presently is Rs 3,500 per month. Maximum limit on pension is 50 per cent of the highest pay in the Government of India (presently Rs 45,000 per month). viii. The amount of pension and rules vary on the basis of years of service of an employee and nature of retirement (voluntary or after reaching age of superannuation) among others. 52. APGVB opens 1.47 lakh no-frills accounts on single day

i. Andhra Pradesh Grameena Vikas Bank (APGVB) has opened about 1.5 lakh no-frills accounts in eight districts of the State on a single day as part of Direct Benefit Transfer (DBT) initiative. ii. The 638 branches together opened 72,122 accounts while the banks financial inclusion machinery under branchless banking business correspondent model had opened 75,320 no-frills-accounts in 64 villages in Warangal district. iii. These accounts, opened with zero balance and seeded with Aadhaar cards will be Aadhaar payment bridge to facilitate electronic fund transfer like subsidies, scholarships, from concerned Government Departments. iv. The beneficiaries can withdraw the amount either at our branches or SBI group ATMs or through branchless banking business correspondent agents (BCAs). Our bank started issuing RuPay ATM Debit Cards and has already in place BCAs, the bank said in a release on Friday. v. It has set a target of opening 10 lakh accounts in the next three months, it added. 53. Ponzi operators to face penalties worth three-times of profits

i. Operators of illegal money-pooling schemes will soon face penalties of up to three times the profit made by them, as against the current provision of a meagre fine of Rs. 1 crore.

ii. The capital markets regulator Sebi (Securities and Exchange Board of India) has decided to increase the monetary penalty for those running unauthorised Collective Investment Schemes (CIS), as the existing mechanism have not proved to be sufficient to deter such illegal mobilisation of money. iii. As per a Sebi memorandum in this regard, illegal mobilisation of funds within the existing legal framework falls within a provision wherein a maximum penalty of Rs. 1 crore may be imposed. iv. Sebi is of the view that this penalty "is very meagre compared to the money mobilised by unregistered CIS, especially considering that in certain cases the money mobilised is in multiples of thousand crores." v. A typical 'ponzi' scheme involves the operator collecting a large amount of money from investors and paying them returns from their own money or the money collected from subsequent investors, rather than from profit earned by the person or entity operating such a scheme. vi. Sebi says it has come across various cases of "huge sums of money being raised by unscrupulous operators from a large number of investors by floating schemes in the nature of unregistered collective investment schemes". vii. Sebi has, therefore, decided to amend its FUTP Regulations to take enforcement action against unregistered CIS entities by way of adjudication proceedings, which have proved to be more effective and involve larger penalties. viii. It has been proposed that any illegal mobilisation of funds without obtaining a certificate under the CIS Regulations can be declared as a fraudulent and unfair trade practice under the FUTP Regulations. ix. The FUTP Regulations are also being amended to declare that dealing in securities shall be deemed to be a fraudulent or an unfair trade practice if it involves mobilisation of money by any person in violation of CIS Regulations and the relevant sections of the Sebi Act.

54. Delhi is the richest state in the country: govt statistical data i. Delhi is the richest state in country with the per capita income of 2,01,083 rupees during 2012-13.

ii. It has increased by 27397 rupees as compared to 2011-12. This was revealed in the Delhi Statistical Hand Book-2013 released by Chief Minister Shiela Dikshit in New Delhi on Thursday. iii. Briefing reporters, Ms. Dikshit said that the total literacy rate in the national capital has reached 86.20 per cent. She said, 41.45 lakh children were enrolled at different levels in schools during 2011-12. iv. The Chief Minister said that the health infrastructure has expanded substantially and there are 940 hospitals with 43,643 beds in the city.

55. PMEAC lowers growth projection for 2013-14 to 5.3 pc

i. Prime Minister's key economic advisor C Rangarajan on Friday lowered the growth forecast for the current fiscal to 5.3 per cent from 6.4 per cent projected earlier and listed out host of measures including further liberalisation of FDI norms to improve economic condition. ii. "Economy will grow at 5.3 per cent in 2013-14," Prime Minister's Economic Advisory Council (PMEAC) Chairman Rangarajan said on Friday while releasing the Economic Outlook for 2013-14. iii. The PMEAC had in April projected 6.4 per cent growth for Indian economy for current financial year. The GDP grew by 5 per cent in 2012-13. iv. Referring to the external sector, Rangarajan expressed hope that the Current Account Deficit (CAD) in 2013-14 will come down to USD 70 billion or 3.8 per cent of GDP, from USD 88.2 billion or 4.8 per cent a year ago. Note: i. RBI too had earlier lowered its growth projection for this fiscal to 5.5 per cent from 5.7 per cent. 56. India to buy $4.3 billion worth of World Bank bonds

i. The government on Thursday announced it decision to invest $4.3 billion (Rs 27,000 crore) the World Bank's special private placement bonds (SPPBs) so that the country could remain eligible for the global lender's low-cost funding for various domestic infrastructure projects. ii. The investment will allow India to borrow $4.3 billion from the World Bank, over & above the single borrower limit of $17.5 billion. iii. The government said that the additional borrowing space would help it complete its planned infrastructure projects with the assistance of the International Bank for Reconstruction & Development (IBRD). iv. Economist Dharmakirti Joshi, from ratings agency Crisil, said, "This is a confidenceenhancing measure. Keeping all funding sources accessible at a time when government finances are tight is a good move." v. Joshi added that the move would increase supply of dollars and help in alleviating funding constraints for large investment projects.

vi. To fund the government's proposed huge investment; the Reserve Bank of India (RBI) will use the country's foreign exchange (forex) reserves, which stood at $275 billion at the end of August this year.