RBI proposes new method to benchmark floating rate of loans for MSMEs
In a bid to ensure greater transparency, Reserve Bank has proposed that floating interest rates on personal, home, auto and MSMEs loans be linked to external benchmarks like repo rate or treasury yields.
RBI said that the final guidelines to link the interest rate to external benchmarks will be issued by the end of this month.
Currently, banks follow system of internal benchmarks, including Prime Lending Rate, Benchmark Prime Lending Rate, Base rate and Marginal Cost of Funds based Lending Rate. The new system is likely to become operational by 1st April 2019.
RBI has said that the banks should decide the benchmark rate system to be followed right at the inception of the loan and it should remain unchanged through the life of the loan.
It added that adoption of multiple benchmarks by the same bank will not be allowed within a loan category.
As a step in that direction, it is proposed that all new floating rate personal or retail loans (housing, auto, etc.) and floating rate loans to Micro and Small Enterprises extended by banks from April 1, 2019 shall be benchmarked to one of the following:
Reserve Bank of India policy repo rate, or
Government of India 91 days Treasury Bill yield produced by the Financial Benchmarks India Private Ltd (FBIL), or
Government of India 182 days Treasury Bill yield produced by the FBIL, or
Any other benchmark market interest rate produced by the FBIL.
Gujarat CM Vijay Rupani approves Rs 50 crore STI fund
The Science & Technology Department of Gujarat has identified Gujarat Council of Science & Technology (GUJCOST) to implement the scheme in fields which will be decided by the government for solving major problems faced by the state.
Chief Minister Vijay Rupani on 4 December 2018 approved a Rs 50-crore Science & Technology Innovation (STI) Fund to provide assistance up to Rs 50 lakh to central and state universities and colleges, recognised by UGC and AICTE, for a period of maximum three years, to develop latent talents and encourage research and development in strategic fields.
The initiative is aimed at assisting thousands of researchers or groups of researchers, after evaluation by experts and advisory committees, being constituted.
The fund can be availed by state government assisted, grant-in-aid and others organisations working on non-commercial basis. Norms will be fixed for issues related to Intellectual Property.
Maharashtra launches SMART initiative for Agribusiness, Rural Transformation
In a bid to transform rural Maharashtra, Chief Minister Devendra Fadnavis has launched a unique initiative called "SMART", which stands for State of Maharashtra’s Agribusiness and Rural Transformation. This World Bank assisted project aims to revamp agricultural value chains, with special focus on marginal farmers across 1,000 villages.
Over 49 companies including the Tata Group, Amazon, ITC and Patanjali among others entered an agreement with the Maharashtra government to revamp the agricultural value chain and improve farmers’ price realisation.
Project SMART entails an investment of ₹2,000 crore with the World Bank contributing₹1,500 crore and the State government ₹430 crore.
The balance ₹70 crore will come through VSTF (Village Social Transformation Foundation), a Maharashtra government initiative, through its partners.
VSTF signed MOU’s with 22 corporates and start-ups to focus on increasing farm productivity and price realisations for farmers by direct tie-up with end-buyers.
US re-establishes permanent diplomatic mission in Somalia for first time in 27 years
United States government has decided to re-establish a "permanent diplomatic presence" in Somalia for the first time in 27 years.
The U.S. closed its Somalia embassy in January 1991 as the country collapsed into civil war, with the military airlifting out the ambassador and others.
The U.S. formally recognized Somalia's new federal government in 2013 but has based its diplomatic mission in the capital of neighbouring Kenya.
Somalia Problem
At present, US forces are partnering with the United Nations-backed African Union Mission in Somalia, which aims to counter the threat from al-Shabab militants.
Despite losing much territory in recent years, the al-Qaeda-linked extremists have continued to pose a real threat to Somalia's stability with deadly attacks.
Al Shahab in Somalia
Al-Shabab means The Youth in Arabic.
It emerged as the radical youth wing of Somalia's now-defunct Union of Islamic Courts, which controlled Mogadishu in 2006, before being forced out by Ethiopian forces.
It is banned as a terrorist group by both the US and the UK and is believed to have between 7,000 and 9,000 fighters.
Al-Shabab advocates the Saudi-inspired Wahhabi version of Islam, while most Somalis are Sufis.
It has imposed a strict version of Sharia in areas under its control, including stoning to death women accused of adultery and amputating the hands of thieves.
RBI to implement an Ombudsman scheme for digital transactions
The Reserve Bank of India has announced that it will introduce an 'ombudsman scheme' to provide cost-free mechanism to redress grievances of customers related to digital transactions.
The scheme will be notified by the end of January next year.
Why?
Ever since demonetisation, digital transactions, including mobile wallets and UPI, have growth three-fold as of August 2018.
With the digital mode for transactions gaining traction in the country, there is an emerging need for a dedicated, cost-free and expeditious grievance redressal mechanism to strengthen consumer confidence.
The central bank has also decided to come out with a framework for limiting customer liability in respect of unauthorised electronic payment transactions involving prepaid payment instruments.
It has already issued instructions on limiting customer liability in respect of unauthorised electronic transactions involving banks and credit card issuing non-banking financial companies.
Sahitya Academy awards for 2018 announced
Sahitya Akademi on 05 Dec announced its annual Awards in 24 languages. Seven books of poetry, six novels, six short stories, three of literary criticism and two of essays have won the Sahitya Akademi Awards, 2018.
Awards will be presented to the winners on January 29
Sahitya Academy Award in Poetry
- Assamese – Sananta Tanti
- Konkani – Paresh Narendra Kamat
- Malayalam – S Ramesan Nair
- Sanskrit – Dr Rama Kant Shukla
- Rajasthani – Rajesh Kumar Vyas
- Sindhi - Khiman U Mulani
Sahitya Academy Award in Novels
- Dogri – Indrjeet Kesar
- English – Anees Salim
- Hindi – Ms Chitra Mudgal
- Santali – Shyam Besra
- Tamil – S Ramakrishnan
- Urdu – Rahman Abbas
Sahitya Academy Award in Short Stories
- Bengali – Sanjib Chattopadhyay
- Bodo – Rituraj Basumatary
- Kashmiri – Mushtaq Ahmed Mushtaq
- Maithili - Prof Bina Thakur
Best Collection of Short Stories – AAKH written by Mushtaq Ahmed Mushtaq
Bhasha Samman categories
- North Zone – Yogendra Nath Sharma ‘Arun’
- South Zone – G Venkatasubbiah
- Eastern Zone – Gagendra Nath Das
- Western Zone - Shailaja Bapat
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