Current Affairs Capsule - 02

November 26
Current Affairs Capsule 02
2016
The document contains the latest happenings in India and the World
and a brief analysis of the issues
Current Affairs
Capsule - 02
Current Affairs Capsule - 02

Contents
BUSINESS ................................................................................................................................................. 3
Artificial Intelligence by BSE................................................................................................................ 3
Indias wealth rises, as does disparity................................................................................................. 3
SBI Pay: Indias largest bank goes live on UPI Platform with its Android App .................................... 3
Amazon to sell Amul products in the US ............................................................................................ 4
Indian Pharma sector targets $300 billion revenue by 2030 .............................................................. 4
SEBI tightens norms for Credit Rating Companies .............................................................................. 4
KG Basin Issue: Government imposes fine on RIL............................................................................... 5
World Banks Ease of Living Index ................................................................................................... 5
ECONOMY ............................................................................................................................................... 6
Entire country under National Food Security Act ............................................................................... 6
Centre forms committee to push cashless transactions..................................................................... 6
Airtel launches Indias first Payment Bank ......................................................................................... 6
POLITY AND LAW..................................................................................................................................... 8
Lodha Panel Recommendations ......................................................................................................... 8
Measures to prevent Railway Accidents (in view of Indore-Patna Express derailment mishap) ....... 9
INTERNATIONAL AFFAIRS...................................................................................................................... 10
The hero of Cuban Revolution, Fidel Castro, passes away ............................................................... 10
MISCELLANEOUS ................................................................................................................................... 11
Marrakech Conference of Parties (implications post Paris Climate Summit) ................................... 11
Delhi Smog ........................................................................................................................................ 11
FMS Scholastic Council, FMS Delhi
Page 2

BUSINESS
Artificial Intelligence by BSE
BSE has introduced a data analytics-based solution that relies on artificial intelligence to
track news related to listed companies on digital media using social media.
The objective of the tool is to detect and mitigate potential risks of market manipulation and
rumours, and to reduce information asymmetry arising from it on digital media platforms.
It would provide accurate information involving listed companies and the BSE through the
exchange website for the benefit of investors. The solution employs an advanced level
combination of statistical modeling and big data analytics.
Indias wealth rises, as does disparity

According to a report on Global Wealth by Credit Suisse, the total quantum of wealth is rising in
India but so is the disparity between those who have wealth and those deprived of it.
Highlights of the report:
While wealth has been rising in India, growth is uneven. About 96% of the adult population
remains at the base of the wealth pyramid with wealth below $10,000, and a small fraction
of the adult population (0.3%) has net worth of more than $100,000.
Wealth in India is dominated by property and other real estate that make up 86% of its
estimated household assets.
Wealth in India in local currency terms increased 5.1% in 2016 but due to adverse currency
exchange movements, Indias household wealth fell by 0.8% to $3 trillion in dollar terms.
The annual growth of wealth per adult in rupees has averaged 6 per cent between 2000 and
2016.
The number of millionaires in India is at 1.78 lakh with $973 billion in wealth. Among these,
ultra high-networth individuals increased by 5.2% to 2,260, including 1,040 with more than
$100 million.
The number of millionaires is projected to increase by 9.5% in the next five years to 2.8 lakh
in 2021. Meanwhile, personal debts are estimated to be 9% of gross assets in India, much
lower than in most developed countries.
Global scenario:
Globally, the overall growth in wealth remained limited in 2016, continuing the trend that emerged
in 2013 and contrasting sharply with the double-digit growth rates witnessed before the global
financial crisis of 2008.
The total global wealth in 2016 edged up by 1.4% or $3.5 trillion to a total of $256 trillion, a
rise in line with the increase in the worlds adult population.
SBI Pay: Indias largest bank goes live on UPI Platform with its Android App
SBI has announced its arrival on the UPI platform with the launch of its android app, SBI Pay
With the current demonetisation drive of the government and the push towards digital or
cashless payments, SBI Pay is expected to be a game changer in the digital payment
ecosystem as the bank has the largest customer base in the country
SBI is slightly late to the platform. Some 30 banks have now enabled UPI on their own apps,
most of which are available on the Google Playstore; the iOS (Apple) versions will come
later.
Page 3
Most of the banks have now started accepting payments through UPI. Just a couple of days
back, Indias most valuable bank, HDFC, also joined the UPI bandwagon. The arrival of SBI
and HDFC will certainly prove helpful in pushing the country towards a cashless economy.
Amazon to sell Amul products in the US
Amazon announced dairy brand Amuls foray into online selling in the US to buy Amul
products
Amul is offering Amul Ghee and Gulab Jamun to global customers through Amazon.com
Amul Ghee is currently ranked as one of the top stocked units on Amazon in the butter and
margarine category
Amazons Global Selling Program facilitates easy and convenient access for all Indian sellers,
including small and medium enterprises as well as large brands, to sell their products to
consumers across the globe
Indian Pharma sector targets $300 billion revenue by 2030
Indian pharmaceutical sector has the potential to grow to the size of $300 billion by 2030
from the current $15 billion provided it accords high priority on quality and R&D
Growing biotechnology segment must be captured to cash in on the increasing demand for
bio-similars
SEBI tightens norms for Credit Rating Companies
Why in News?
o SEBI (Securities and Exchange Board of India) tightened disclosure norms for credit
rating agencies. This has been announced in lieu with the sudden downgrades and
rate cuts in the recent past
What is it?
o SEBI has asked credit rating agencies to disclose the basis on which they rate
companies, rating history as well as the responsibilities of the analysts
o The criteria to judge companies would include criteria for analysing financial ratios,
treatment of consolidation of firms, parents group support, and nature of business
o The rating process has to be reviewed periodically
o Any change in the rating process has to be disclosed publically along with the
original provision
o Any rating agency must not stop rating a company abruptly. If the issuer does not
co-operate then the rating agency must continue with the data available in public
domain
o Significance of this move by SEBI can help bring transparency in rating process. And
it will curb rate shopping and rating suspension
Page 4

KG Basin Issue: Government imposes fine on RIL
Why in News?
o Government has sought USD 1.55 billion from Reliance Industries and its partners:
BP Plc. and Niko Resources Ltd. for extracting gas belonging to ONGC from the
Krishna-Godavari Basin in the past seven years.
Background
o ONGC claimed that between 1 April 2009 and 31 March 2015, 11 billion cubic
metres of gas flowed from ONGCs field to RILs adjacent field
o This claimed was made citing the report by US-based consultancy firm, DeGolyer and
MacNaughton (D&M). D&M was jointly hired by RIL and ONGC
o A committee was appointed under Justice A P Shah to look into the matter
o The committee commented that RIL must pay the government for the gas it has
drawn from an adjacent block from the KG basin in the past seven years
o The panel also said that the compensation must be paid to the government and not
to ONGC since ONGC has no an ownership right or possessory interest in natural gas
World Banks Ease of Living Index
Why in News?
o World Bank is all set to rank cities globally on a ease of living index
o This news comes at a time when the World Bank is planning to tweak the ease of
doing business index
What is it?
o The index is being launched keeping in mind that as cities grow and expand, the ease
of living becomes an important parameter
o The index could include categories on social inclusion, cost of living, public transport,
housing, education, health, environment-friendliness, crime/safety, governance and
corruption
Where India Stands Now?
o India was ranked a lowly 130 on the ease of doing business index 2016
o India has recommended the World Bank that reforms undertaken in the entire
country and not just in Delhi and Mumbai be considered for the Ease of Doing
Business Index
o The Ease of Doing business index measures how easy it is to setup new business in a
particular country depending on different parameters such as getting a licence,
infrastructure, govt. policy and so on
Page 5

ECONOMY
Entire country under National Food Security Act
Why in News?
o The Centre notified that the entire country has now come under the umbrella of
National Food Security Act with Kerala and Tamil Nadu joining the bandwagon
o With this move, now 81.34 crore people will get wheat at Rs. 2/kg and rice at Rs.
3/kg
Background
o The National Food Security Act was enacted in 2013 with the aim to provide
adequate quantity of quality food at affordable prices to the people
o The act provides food security by offering essential grains and cereals at rock
bottom prices of Rs. 1, Rs. 2 and Rs. 3
o The public distribution system forms the most essential part of the implementation
of this act
o There are two types of beneficiaries under the PDS: AAY ( Antodya Ana Yojana,
launched in 2000) and priority households
o Every AAY household is entitled to get 35 kg of food grains every month while
priority households (BPL families) are entitled to get five kg per person of food
grains every month
Centre forms committee to push cashless transactions
The Centre announced a new committee, headed by NITI Aayog CEO Amitabh Kant, to form
a strategy to expedite the process of transforming India into a cashless economy
The panel is tasked with identifying various bottlenecks affecting access of digital payments
The attempt is to establish and monitor an implementation framework with strict timelines
to ensure that nearly 80% of the transactions in India moves to the digital-only platform
The centre is working towards making all government transactions to the cashless mode,
through a new single window e-payment system that individuals or businesses can use to
make payments to any central or state department
Airtel launches Indias first Payment Bank

Airtel Payments Bank Ltd has become the first payments bank to start operations, offering services
in Rajasthan in a limited scale.
Key facts:
The pilot will run at 10,000 Airtel retail outlets where basic banking services will be provided.
Customers will be offered an interest rate of 7.25% on deposits in savings account, higher
than the 4-6% commercial banks are offering
Bank accounts can be opened by customers without documents using Aadhaar based e-KYC.
The subscribers mobile number would function as a bank account number and transfer
from Airtel to Airtel phone numbers would be free
The retail outlets, which will act as banking points, will offer account opening services, cash
deposit and withdrawal facilities
As a payments bank it cannot perform lending activities, except while giving loans to its
employees on approval of the board. The bank can, however, accept deposits of as much as
Rs1 lakh
Page 6
The bank was the first applicant to receive the final licence from the Reserve Bank of India
(RBI) in April. Kotak Mahindra Bank holds 19.9% in the Airtel Payments Bank
Background:
In August last year, the central bank had given in-principle approval to 11 applicants to set up
payments bank by February 2017. Out of the 11 applicants, Cholamandalam Investment and Finance
Co., Tech Mahindra Ltd and billionaire Dilip Shanghvi have already given up their approvals.
According to RBI guidelines issued in November 2014, a payments bank will maintain cash reserve
ratio with the central bank. Apart from it, they will be required to invest minimum 75% of their
deposits in statutory liquidity ratio eligible government securities with maturity up to one year and
hold maximum 25% in current and time deposits with other scheduled commercial banks for
operational purposes and liquidity management.
IMPORTANT NOTE: Kindly read up about Payment Banks. Contrary to popular

perception, Paytm is NOT a Payment Bank. Paytm was only given an inprinciple approval to launch a Payment Bank by RBI in August 2015
Page 7

POLITY AND LAW
Lodha Panel Recommendations
Tightening the leash on the powerful and the political among the administrators in the Board of
Control for Cricket in India (BCCI) and its member State associations, the R.M. Lodha-led Supreme
Court Committee has reiterated before the apex court its recommendation to remove office-bearers
who are over 70 years old, government ministers and those who have already served at the Boards
helm for nine years.
In its third report filed in the court, the committee said the Supreme Court had upheld its
recommendations in a July 18, 2016, judgment, and the time had come to implement them
so that work on reforming the Board could go ahead.
The panel also sought the disqualification of BCCI office-bearers who are not Indian citizens,
those who hold any office or post in a sports or athletic association or federation apart from
cricket, those declared insolvent or of unsound mind and administrators charged with a
crime.
Background:
The recommendations are the latest development in the stand-off between the Supreme Court and
the BCCI over reforms that span the entire breadth of cricket administration in the country.
The Board of Control for Cricket in India (BCCI) and its affiliate state associations have
resisted some of the reforms recommended by the Lodha committee, and had received
sharp rebukes from the Supreme Court for this. The Court had also criticised the constitution
of the BCCI, saying it was unsuited to bring any level of transparency.
The three-member Lodha Committee, led by former Chief Justice of India RM Lodha, had
been appointed by the Supreme Court in 2015, to recommend reforms to the Board of
Control for Cricket in India and all its affiliated state-level cricket associations.
Important recommendations made by Lodha panel:

One state, one cricket body: One association of each state will be a full member and have
right to vote. One unit should represent one state.
CEO-run organisation: Committee also suggested the restructuring of the BCCIs
administrative set-up, proposing the position of a CEO accountable to a nine-member apex
council. An apex council for the BCCI comprising 9 members, of which 5 should be elected, 2
should be representatives of players association, and one woman. CEO to be assisted by 6
professional managers and the team of CEO and managers will be accountable to the apex
council.
Under RTI: To ensure transparency in its functioning, the panel has said that it is important
to bring the body under the purview of the Right to Information Act.
Ethics officer: The committee recommended the institution of the office of an Ethics Officer,
who would be responsible for resolving issues related to the conflict of interest. Ethics
officer would be a former High Court judge.
Electoral officer: The committee has also suggested the appointment of an Electoral Officer
to conduct the Board elections. The electoral officer would oversee the entire election
process relating to the office-bearers namely, preparation of voters list, publication, dispute
about eligibility of the office-bearers
Ombudsman: The panel has also proposed an Ombudsman for dealing with internal
conflicts. Ombudsman can take cognisance of complaints suo moto, or received complaint or
referred complaint by the apex council.
Page 8
Among the most sensational recommendation by Lodha panel was the suggestion to legalize
betting. The panel felt that the move would help curb corruption in the game and
recommended that except for players and officials, people should be allowed to place bets
on registered sites.
The Panel also suggested that the grants given to state associations be properly monitored.
It has also suggested that a person cannot be a BCCI office-bearer and a state association officebearer at the same time.
Measures to prevent Railway Accidents (in view of Indore-Patna Express

derailment mishap)
Four years ago, a high powered committee on railways safety had made far-reaching
recommendations to avoid and reduce casualties in rail accidents like the one recently seen in the
unfortunate derailment of Indore-Patna express.
The key observations and recommendations of the committee are listed below:
The Committee notes that the present environment on Indian Railways reveals a grim
picture of inadequate performance largely due to poor infrastructure and resources, and
lack of empowerment at the functional level
The financial state of Indian Railways is at the brink of collapse unless some concrete
measures are taken. Passenger fares have not been increased in the last decade and the
infrastructure is severely strained. All safety margins have been squeezed. This has led to a
neglect of infrastructure maintenance
In the present situation, the three vital functions (rule making, operations and the
regulation) are all vested in the Railway Board. There is need for an independent mechanism
for safety regulation. The Committee recommends the creation of a statutory Railway Safety
Authority with enough powers to have a safety oversight on the operational mode of
Railways
The Research Design and Standards Organization (RDSO), the apex technical wing of the
Railways, is highly constrained. This has hampered the ability of the system to internalize
emerging technologies. The Committee recommends restructuring of RDSO for greater
empowerment
It also recommends that a Railway Research and Development Council (RRDC) be set up
directly under the government
The Committee recommends the adoption of an Advanced Signalling System (akin to the
European Train Control System) for the entire trunk route length of 19,000 km within 5
years. This is estimated to cost Rs 20,000 crore
All Level Crossings (both manned and unmanned) should be eliminated over five years. An
estimated expenditure of Rs 50,000 crore will be required for achieving this target. The
Committee is of the belief that this amount will be recovered within 7-8 years through
savings in maintenance costs and improved train operations
The Committee also recommends a switch over from the ICF design coaches to the much
safer LHB design coaches. This is likely to cost Rs 10,000 crore over the next five years.
Other Committee recommendations on the maintenance of safety related infrastructure are
estimated to cost about Rs 20,000 crore
Page 9

INTERNATIONAL AFFAIRS
The hero of Cuban Revolution, Fidel Castro, passes away
The last of the iconic revolutionary figures of 20th century, Fidel Castro, is no more
He began his political career as a militant student leader committed to social justice and
establishment of a corruption-free government in Cuba
Later, he became part of movements that sought to overthrow Cuban dictator Fulgencio
Batista who came to power in 1952 through a coup
Soon, in the mid 1950s, Fidel, after his release from prison, along with his revolutionary
comrades, Che Guevara and brother Raul Castro, sailed from Mexico to the Sierra Maestra
to launch a guerrilla struggle
After around half a decade, Fidel was able to attain power after Batista went into exile in
1959
Cuba began pursuing socialism in the early 1960s right next to the US, which soon severed
its ties with the regime after Havana nationalized all major foreign-owned assets in the
country
It was the beginning of a long lasting enmity between the two countries as the US sought to
overtrow Fidel by instigating armed attacks such as Bay of Pigs invasion of 1961, and to
covertly assassinate him
Cuba also played a major role in the Non-Aligned Movement (NAM), having sent Che
Guevara to New Delhi to discuss its formation and later when Fidel was the secretary
general between 1979 and 1983
Fidels Cuba always enjoyed good ties with India, with both countries supporting
multilateralism internationally and need for a more democratized United Nations
By the 21st century, Cuba had among the most advanced health care systems in the world, a
largely well educated and socially conscious population, but a battered economy
characterized by low wages and little diversification
Fidel remained an old-school communist till the end of his life even as Cuba embarked upon
gradual economic liberalization under Rauls rule, which eased restrictions on the economy
and freed it up for limited enterprise led development
US President Barack Obama, in the meantime, revived diplomatic ties with Rauls Cuba, and
even as the embargo continues, ties between the US and Cuba have been never better since
the revolution
NOTE: Interested students may read up about how Fidel Castro held the world hostage and almost
had U.S. on its knees during the Cuban Missile Crisis
Page 10

MISCELLANEOUS
Marrakech Conference of Parties (implications post Paris Climate Summit)
Background
o In the latest CoP of the UNFCCC held at Marrakesh, Morocco more than 190
countries negotiated to prepare the fine print for Paris deal. It sought to make the
rules that would help in the implementation of the law i.e. Paris Agreement
o The countries have agreed to complete the rule book by 2018 as the Agreement
would come into force from 2020
Concerns
o Differences between the developed and developing countries persisted over crucial
issues pertaining to climate finance, adaptation funds and scaling up reduction in
emissions of greenhouse gases
o The developed countries, led by USA from the front, tried to use the rule-making
process to subvert the Paris agreement
o The developed countries were successful in getting their OECD report on climate
finance acknowledged into the formal negotiations, despite developing countries
claiming that it had used dubious accounting methods. This OECD report could now
become one of the bases for defining climate finance
o Principles of equity and differentiated responsibilities remain on table but no
progress on operationalizing them in the Paris Agreement rulebook
o The road map for rich countries to provide US $100 billion annually starting 2020
looks more dubious than before
o No space for deeper emission reductions or increased climate finance by rich
countries before 2020
o The replenishment of funds for adapting to climate change though, was one of
positive developments from the Marrakesh conference. There was a demand for
replenishing the adaptation fund under the Paris agreement and that was done with
$80 million. However, discussion over it will continue in the next CoP
o The issue of providing loss and damage finance to vulnerable countries also will be
taken up next year
o Indias call for Climate Justice finds no placeholder. India unable to find even a
rhetorical entry for lifestyle issues at Marrakech
Delhi Smog
About
o Delhi witnessed the worst smog in almost two decades, with consistently hazardous
pollution levels being recorded for over a week
o The air quality was 10 times worse than the safe levels
o A number of factors were seen as responsible for the smog- stubble burning from
Punjab and Haryana, vehicular pollution, Diwali crackers and rising levels of dust
from construction and allied activities formed the major reasons
o Adverse weather conditions, such as low wind speed coupled with drop in
temperature and high humidity, which had blocked dispersal of pollutants,
deteriorated the conditions further
Page 11
Vehicular Pollution
o Vehicular pollution contributes a lot to the particulate matter in the air
o Measures taken
Odd-Even policy,
Ban on 10 years old diesel vehicles
SC had ordered the Center and NCR states to divert commercial vehicles not
destined for Delhi and levy environmental compensation charge on
commercial vehicles to discourage them from passing through Delhi
o Issues
These measures are not comprehensive
Not all measures have been implemented well by the states
Even the ECC that has been collected has not been fully utilized
o Suggestions
Comprehensive road transport policy whereby promotion of public
transport is needed. Several studies have shown that public transport
provides more than 65 per cent of Delhis commuting needs but occupies
less than five per cent of road space
This should be coupled with imposing disincentives to purchase private
vehicles. In this a combination of pollution taxes, rationalising licensing and
registration of vehicles, congestion tax, car free areas etc should be
implemented
Urban planning should be long-term which should give enough space for
non-motorised transport like cycling and walking
o The challenge is political will as automobile is one of the most important industry in
India
Stubble Burning
o Burning of agricultural waste add greenhouse gases that cause global warming,
besides pollutants such as carbon monoxide, ammonia, nitrous oxide and sulphur
dioxide and a high quality of PM2.5 that severely affect human health. It not only
pollutes the air but also deprives the land of useful nutrients
o Stubble burning in the northern States significantly contributes to the poor air
quality in large parts of the Indo-Gangetic Basin, with local and cascading impacts
felt from Punjab all the way to West Bengal
o It is one of the most significant reasons for increasing pollution in the NCR region in
winters that has become a regular menace
o Efforts taken
Punjab has imposed a prohibition on the burning of paddy straw
It further launched initiatives aimed at better utilisation of biomass,
including as a fuel to produce power
NGT has banned crop burning in the NCR region
o Issues
The root of the problem is financial- removing crop residues is expensive
and thus is not preferred by the farmers. Further the use of mechanized
harvesters which dont cut the crop more close to the ground is aggravating
the problem. The present efforts fail to address this issue
Page 12
The efforts of utilizing biomass do not match the scale of agricultural

residues
Present efforts fail to address farmers anxiety to remove the surplus from
the fields quickly to make way for the next crop
There is no mission mode approach to the annual crisis
o Suggestions
Most of the biomass is burned during the winter when the demand for
fodder is rising and thus the surplus material could be efficiently utilized
Power production from biomass, mechanized composting and bio-gas
production should be scaled up by increasing investment
Policy support should be given to farmers to incentivize their liberal
adoption
Conservation agriculture needs to be popularized which would encourage
farmers to use newer low-till seeding technologies allowing much of the
crop residues to remain on site, and curb the release of a variety of
pollutants
Eminent agriculture scientist MS Swaminathan has suggested
commercializing the paddy straw to address the problem. Paddy straw can
be used for making animal feed, cardboard, paper and other products. Thus,
if sufficient financial incentives are given to the farmers, they would not
resort to burning them
There is also a need to develop rice varieties that are both rich in grain yield
and high in straw quality. Use of such dual-purpose rice varieties will help to
maintain food security, farm income and improve environmental
sustainability
Environmental Emergency
o The NGT had prescribed certain measures to be taken if pollution levels breach
prescribed levels. For example, it said that if PM 10, PM 2.5 are in excess of 500, 300
respectively, a state of environment emergency should be declared
o The measures could include a temporary shutdown of thermal power plants,
temporary closure of all construction activity in affected areas etc
Page 13

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November 26