Current Affairs for IAS Exams - 09 June 2019
::NATIONAL::
India seeks exemption to PM’s flight via Pak airspace
• India has requested Pakistan that Prime Minister Narendra Modi be allowed
to fly through its airspace to attend the Shanghai Cooperation Organisation (SCO)
meeting in Kyrgyzstan’s capital, Bishkek, on June 13 and 14 despite the
restrictions it had imposed on flights from and through the country, according
to government sources.
• After imposing a ban on all flights following India’s air strikes in
Balakot deep inside its territory, Pakistan has lifted restrictions on the use
of its airspace for most carriers and opened only two out of 11 routes through
its southern parts for flights to and from India.
• As a result, airlines still need to take a long detour to fly to countries
to the north of Pakistan. A flight to Bishkek through Pakistan is likely to take
nearly four hours, but a detour will result in an eight-hour flight.
• Airspace restrictions by Pakistan have been in place since February 27 and
were recently extended until June 15 for flights entering the country through
its eastern border after flying through Indian skies.
• These have resulted in steep airfares for passengers, including a large
number of Indian students in different Central Asian countries planning a trip
home for their summer break.
Government notifies PM-KISAN scheme for farmers
• The government has notified its decision to extend the benefit of six
thousand rupees per year to eligible farmers under the Pradhan Mantri Kisan
Samman Nidhi (PM-KISAN) scheme. The decision will benefit all 14.5 crore
farmers, irrespective of the size of their landholding, in the country.
• Notifying the decision, the Union Agriculture Ministry has written to all
state governments, asking them to identify beneficiaries subject to the existing
exclusion factors.
• The NDA government took this historic decision in the first meeting of
Union Cabinet after assuming office last month. In its manifesto for 2019
general elections, the BJP had promised to extend the scheme to all farmers.
• PM-KISAN scheme was announced in the interim budget, under which the
government decided to provide 6,000 rupees per year to about 12.5 crore small
and marginal farmers.
• Now, the revised scheme is expected to cover two crore more farmers with an
estimated expenditure of over 87 thousand crore rupees in the current financial
year.
::ECONOMY::
National institute for valuers in lines with ICAI mooted
• The government will look at setting up a national institute for valuers on
the lines of chartered accountants’ apex body ICAI, a senior official said
Saturday.
• Professional institutes like the Institute of Chartered Accountants of
India (ICAI) have been set up under Acts of Parliament.The Companies Act, 2013,
provides a comprehensive framework for development and regulation of the
profession of valuers.
• Speaking at a national seminar on valuation here organised by the
Insolvency and Bankruptcy Board of India (IBBI), Mr. Srinivas stressed on the
importance of professional competence, conduct and ethics of valuers.
• Corporate affairs secretary said standards for valuation are likely to be
finalised in the near future, adding that the immediate priority is that
Registered Valuers Organisations (RVOs) should develop and further improve their
code of conduct as each RVO is a frontline regulator.
• In 2008, there was an initial attempt to have a bill on the lines of ICAI
Act for having an institute for the valuers, he said, adding that now valuation
profession cannot fly below the radar as the corporate affairs ministry is
taking various steps.
RBI governor moots transformation of banking sector
• Following the steps taken by the Reserve Bank of India (RBI) and the
government in the last few years, the tide has turned for the banks, with asset
quality improving.
• There was a significant improvement in asset quality of scheduled
commercial banks (SCBs) in 2018-19 as the gross non-performing assets (NPA)
ratio declined to 9.3% as on March 2019. It was 10.8% in September 2018 and
11.5% in March 2018.
• At the same time, there has been an improvement in the provision coverage
ratio (PCR) of SCBs to 60.9% in March 2019 from 48.3% in March 2018 and 44% in
March 2015.There has been evidence of credit growth picking up after remaining
subdued in the last few years.
• Even though the government’s capital infusion has helped PSBs improve their
balance sheets, they should not become too dependent on this source. “Depending
upon individual situations, PSBs should access the capital market for
mobilisation of capital,” Mr. Das said.
• The RBI would continue to monitor the activity and performance of the
sector with a focus on major entities and their inter-linkages with other
sectors and would take steps, if needed, to maintain financial stability in the
short, medium and long-term.
• The central bank’s objective was to harmonise the liquidity norms between
banks and NBFCs, taking into account the unique business model of the NBFCs
vis-à-vis the banks’, he added.
