General Knowledge

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GK Notes - May

Business/Economy
Banks Allowed to Provide Loans to Exporters for up to 10 Years
Banks have been allowed by the RBI to give loans with tenures of up to 10 years to exporters to help them
ensure capital flows to fulfil long-term contracts. As per current rules, banks are allowed to provide loans for
up to 1 year only. RBI has permitted banks to allow exporters having a minimum of 3 years satisfactory track
record to get long-term export advance up to a maximum tenor of 10 years to be utilised for execution of longterm supply contracts for export of goods.
This facility is available with certain caveats, including:

An interest rate limit of 200 basis points above the London interbank offered rate (Libor), a global

benchmark.

Exporters getting loans of $100 million or above are required to report the transaction immediately

to the RBI.

There should be irrevocable supply orders in place.

The contract with the overseas party or buyer should be examined and must clearly specify the

nature, amount and delivery timelines of products over the years and the penalty in case of nonperformance or contract cancellation.

Export advances which are classified as non-performing assets as per RBI norms cannot be used

to liquidate rupee loans.

Exporters should have the capacity, systems and processes in place to ensure that orders over

the duration of the tenure can be executed.

Dhamra Port of Odisha Bought by Adani Ports

Adani Ports and Special Economic Zone acquired the strategic Dhamra Port in Odisha for an enterprise value
of Rs. 5500 crore. The company inked a definitive pact to acquire the port from a 50 : 50 joint venture of Tata
Steel and Larsen & Toubro. After the 2005 acquisition of Pipapav Port in Gujarat by APM Terminals BV from
SKIL Infrastructure, the Dhamra deal is the largest port sector deal in India.
Dhamra Port is one of the deepest ports on the eastern coast of India. It was granted the rights by the Odisha
government in 2004 to develop and operate for 30 years. The port is considered strategic as it is located to
serve the mineral belt of the eastern states and in between competitors and government-controlled Haldia and
Paradip Ports. Gautam Adani-led Adani Ports and SEZ is listed on the Bombay Stock Exchange (BSE) and is
75% owned by Adani Enterprises, the flagship of Adani Group. The company owns and operates 5 ports, of
which three Dahej, Hazira and Mundraare in Gujarat. Dhamra Port will help the company enhance its
capacity to over 200 million tonnes by 2020, making it a leader among private sector port operators in the
country.

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GK Notes - May

Gold Import Curbs Eased

The Reserve Bank eased gold import norms by allowing select trading houses, in addition to already
permitted banks, to procure the precious metal to boost exports. The Reserve Bank of India (RBI) in July last
year had imposed severe restrictions on gold imports in order to check the burgeoning current account deficit
and sliding rupee. The central bank had tied imports with exports and prescribed a 20 : 80 formula. This facility
was available to selected banks only and other entities were barred from importing the metal.
Star trading houses/premier trading houses (STH/PTH), which are registered as nominated agencies by the
Director General of Foreign Trade (DGFT), may now import gold under 20 : 80 scheme. Under the 20 : 80
scheme an importer has to ensure that at least one-fifth, or 20 per cent, of every lot of imported gold is
exclusively made available for the purpose of exports and the balance for domestic use.
The decision to ease the restriction follows representations from jewellers, bullion dealers, banks, and trade
bodies. The revised guidelines have come into force with immediate effect. The eligible premier trading
houses, however will have to follow certain conditions.As part of easing curbs, the central bank in March had
allowed five more banks to import gold under 20:80 scheme.
The CAD, which had touched a record high of $88.2 billion or 4.8 per cent of GDP in 201213 is estimated to
have come down to below $32 billion or 1.7 per cent of GDP in 201314. The rupee has strengthened to sub59 level against the dollar from a high of nearly 69 in August 2013.
Marks & Spencer to Open 100 Stores in India
UK based Marks & Spencer announced that the company will open 100 stores in India by 2016. At present,
Marks & Spencer (clothing retailer) operates 40 stores in India and its same-store-sales grew 13 percent in
the fiscal year 2013-14. Same-stores-sales is a key performance metric for retailers and measures sales
growth at stores open for more than a year.
About Marks & Spencer
Mark & Spencer was founded in 1886 and is headquartered at Leeds.
Marks & Spencer operates in India as a joint venture with Reliance Retail, a unit of Mukesh Ambani led
Reliance Industries.
M&S faces tough competition in India from the world's biggest fashion retailer Inditex SA (ITX.MC) and its
Zara brand.

Gas Deal Signed Between China and Russia

China signed a huge, long-awaited deal to buy Russian natural gas, giving Beijing a new source of clean
energy and Moscow a diplomatic boost as it faces international sanctions for its aggressive actions in Ukraine.

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GK Notes - May

With the stroke of a pen, Russia significantly shifted its economic relations with its neighbours, creating a
major new export market to the east and reducing its reliance on European customers at a time when its
relations with the West are at their lowest point since the Cold War.

Russian President Vladimir Putin called the deal a watershed event.

The 30-year deal was announced after meetings in Shanghai between Putin and Chinese President Xi
Jinping. It is worth an estimated $400 billion. The deal marked a new partnership between two countries. The
agreement allows Russia to diversify its gas exports at a time when the crisis in Ukraine has accelerated calls
in Europe to rely less on energy supplies from Russia. Europe gets about 30 percent of its gas from Russia.

The deal will involve developing natural gas fields in Russia and building pipelines from Russia to China. The
cost of building the infrastructure alone is expected to top $70 billion. The $400 billion figure quoted is
probably the result of a formula that could include other costs such as construction, transportation of the
gas and other fees making it difficult to work backward to the price per unit.

General Awareness
Bharatiya Mahila Bank Included in Second Schedule of RBI Act, 1934
Bharatiya Mahila Bank (BMB) was included in the second schedule of the Reserve Bank of India (RBI) Act,
1934. The inclusion of the BMB in the second schedule was announced by RBI in a notification issued in
Mumbai. With the inclusion of BMB, the total number of scheduled commercial banks in India now stands at
90. The inclusion of BMB in the second schedule of the RBI Act, 1934 means that now it will be eligible for
loans from RBI on bank rate and also acquired membership of clearing houses.
About Bharatiya Mahila Bank (BMB)
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Bharatiya Mahila Bank (BMB) is the first all-women bank of India. It started functioning on 19

November

2013 with a capital of Rs. 1000 crore. The key objectives are to focus on the banking needs of women and
promote economic empowerment. The current loan portfolio of the bank is about Rs. 80 to Rs. 90 crore. It is a
bank that provides loan to the girl child at a concessional rate, which is 1% lower than the normal rates.
The bank was incorporated under the Companies Act 1956 in August 2013 and received the certificate of
commencement of Business in the same month and Banking License from RBI in September 2013. Its
Corporate Office is at the IFCI Towers of Nehru Place in New Delhi. The Bank at present has 23 branches
across the country and is aimed to add 55 - 60 branches in the financial year 2014-15. For girl child, it has
BMB Nanhi Kali Recurring Deposit Scheme.
Nabam Tuki sworn-in as the Chief Minister of Arunachal Pradesh
Nabam Tuki on 18 May 2014 was sworn-in as the eighth (seventh as person) Chief Minister of Arunachal
Pradesh at the Raj Bhavan in Itanagar. This is second consecutive term for the veteran congress leader. His
oath to the office and secrecy was administered by the Governor Lt. Gen. (Retd) Nirbhay Sharma.

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He was sworn in as the seventh Chief Minister of Arunachal Pradesh on 1 November 2011 as a successor of
Jarbom Gamlin. He was selected as the Chief Minister due to internal revolt within Congress Party. In the
internal revolt 42 Congress legislators in the 60-member house had opposed Gamlin due to his authoritarian
rule. Gamlin was made Chief Minister of the State after the death of former Chief Minister Dorjee Khandu on
30 April 2011 in a helicopter crash.
About Nabam Tuki
He got elected from the Sagalee constituency in Papum Pare district of Arunachal Pradesh.
He served as the deputy agriculture minister in the Gegong ministry after being elected to the second
legislative assembly in 1995.
In 1988, he served the state as the Transport and Civil Aviation Minister.
In 1996, he served the state as the Irrigation and Flood Control (IFCD) Minister.
In the Mukut Mithi Ministry, he was re-elected to the assembly in 1999 and became a cabinet minister with
the Environment and Forest portfolio.
Under the Gegong Apang and Dorjee Khandu ministries in 2004 and 2009, he served as the PWD and
Urban Development Minister.
He belongs to the Nyishi community.
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The 15 Lok Sabha Dissolved by President of India

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President Pranab Mukherjee dissolved the 15 Lok Sabha as part of a formality before the constitution of the
new Parliament. The President accepted the advice of the Cabinet and signed the order dissolving the 15th
Lok Sabha in exercise of the powers conferred upon him by the Constitution. The outgoing Union Cabinet, in
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its last meeting had advised the President to dissolve the 15 Lok Sabha with immediate effect. After this,
Parliamentary Affairs Minister Kamal Nath had called upon the President and handed over a decision of the
Cabinet.
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The 15 Lok Sabha was dissolved two days after the BJP secured a majority on its own in the elections for the
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16

Lok Sabha by winning 282 seats. The Congress won only 44, one of its poorest performances in a
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general election so far. The Election Commission will now submit the list of newly elected members of the 16

Lok Sabha to the President. The list will contain the names of all 543 members of Parliament. It will be handed
over to the President by a three-member team of the Election Commission.

All Banks to Install Disabled Friendly ATMs

Reserve Bank of India (RBI) directed all banks to install disabled friendly new Automated Teller Machines
st

(ATMs). All the new ATMs that are to be installed after 1 July 2014 need to provide audible instructions and
Braille keypads to customers. Besides, it also directed banks to lay down a road map for converting all the
existing ATMs as talking ATMs with Braille keypads. Earlier in 2009, RBI had issued a circular titled Need for
Bank Branches/ATMs to be made accessible to persons with disabilities.

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GK Notes - May

Highlights
All banks need to make bank branches and ATMs accessible to people with disabilities and make at least
one-third of the new ATMs installed as talking ATMs with Braille keypads.
Place all the existing/new ATMs strategically in consultation with other banks to ensure that at least one
talking ATM with Braille keypad is generally available in each locality for catering to the needs of visually
impaired persons.
Banks may also take appropriate steps including providing ramps at the entrance of the bank branches so as
not to create an impediment in their use by wheelchair users.
Banks need to provide the facilities of magnifying glasses at all bank branches for the use of persons with
low vision.
The branches should display at a prominent notice place about the availability of magnifying glasses and
other facilities available for persons with disabilities.

Novak Djokovic Won the Men's Italian Tennis Open 2014

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Novak Djokovic won the men's Italian Tennis Open 2014 held in Rome, Italy on 18 May 2014. Novak of
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Serbia defeated Rafael Nadal of Spain 4-6, 6-3 and 6-3 in the final. This is Novaks 3 Italian Open and his
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44 title overall. The Italian Open won by Novaks was his 19 career Masters Title and his 19 win against
Nadal in 41 meetings.
Rafael Nadal had won the Rome Masters for the maximum number of seven times.
In the womens, Serena Williams of the US won the Italian Open 2014 against Sara Errani of Italy. The Italian
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Open 2014 was held in Rome, Italy from 11 May to 18 May 2014. It is a red clay tennis tournament after
French Tournament. It is also known as Rome Masters or Italians Championships.
Chitra Magimairaj Nominated for Arjuna Awards 2014
Snooker champion Chitra Magimairaj was nominated for Arjuna Awards 2014 announced by the Billiards and
Snooker Association of India (BSFI). Contemporary player Vidhya Pillai and upcoming player Brijesh Damani
were also nominated for the Arjuna Awards 2014. The BSFI nominated the players and coach based on the
last four years performance of the players and coach. Chitra has bagged three gold, three silver and three
bronze medals in the World Ladies Billiards and Snooker Association event. She won gold medal in the World
Women's Senior Snooker Championship 2014 held in Leeds.
Montek Singh Ahluwalia Resigned
Montek Singh Ahluwalia, the Deputy Chairman of Planning Commission of India resigned from his office. He
submitted his resignation to the Prime Minister, Manmohan Singh after the Union Cabinet meet held. Apart
from Ahluwalia, another member of the Planning Commission B. K. Chaturvedi also submitted his resignation.

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GK Notes - May

Full-time members of the Planning Commission members apart from Montek Singh Ahluwalia were
BK Chaturvedi
Saumitra Chaudhuri
Syeda Hameed
Narendra Jadhav
Abhijit Sen
Mihir Shah
K Kasturirangan
Arun Maira

All members of the Planning Commission submitted their resignation to the Prime Minister who is also the
Chairman of the Planning Commission. Since the term of the Commission is co-terminus with the Union
Government term, hence all the members of Planning Commission resign as the term of the Union
Government ends.
About Montek Singh Ahluwalia
Montek Singh Ahluwalia assumed the charge of Deputy Chairman in July 2004. Under him, the Planning
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Commission drafted 11 Five Year Plan (2007-12) titled Towards Faster and More Inclusive Growth and 12

Five Year Plan (2012-17) titled Faster, More Inclusive and Sustainable Growth. Besides, a better half of the
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10 Five Year Plan was also implemented during his stewardship. Prior to becoming Deputy Chairman of
Planning Commission, a position which carries the rank of Cabinet Minister, he was the first Director of the
Independent Evaluation Office at the International Monetary Fund.

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