Current Affairs for IAS Exams - 29 January 2017

Current Affairs for IAS Exams - 29 January 2017

:: National ::

U.S. President has banned people from seven Muslim-majority countries

• U.S. President Donald Trump has banned people from seven Muslim-majority countries from entering the nation for 90 days and suspended admission of refugees for 120 days through an executive order.

• U.S. immigration authorities have started detaining travellers from Iran, Iraq, Syria, Sudan, Libya, Yemen and Somalia, and all refugees, though the order allowed exemption for those who were already in transit.

• As the new measures take full shape over the next three to four months, the ban could be extended, more countries could be added to the list and doors could be shut for refugees, particularly Muslims, fleeing violence.

• Mr. Trump has also ordered that religious minorities facing persecution in these countries shall be admitted to the U.S. Ahead of signing the executive order restricting entry into the country.

Deal for four stealth frigates has run into trouble

• The multi-billion dollar deal between India and Russia for four stealth frigates has run into trouble over pricing and local construction with Transfer of Technology (ToT).

• India and Russia had signed an Inter-Governmental Agreement (IGA) for four additional Krivak or Talwar class stealth frigates during bilateral discussions on the sidelines of the BRICS summit in October.

• As per the agreement, two ships are to be procured directly from Russia and two to be built in India with Russian assistance.

• Russia has quoted about $990 million for the two ships to be directly imported.

• For those to be built in India, the commercial offer quoted about $800 million for “supply of material to ensure construction of the two ships in India” and $51 million for “supply of project documentation” to ensure their construction.

• The cost of construction of the two ships in an Indian yard — yet to be identified — was to be arrived at later.

• Defence sources said this would steeply push up the overall cost of the two ships and it was seen as a way to ensure that all four ships were imported from Russia.

• The basic structures of the two frigates are already ready at Yantar shipyard in Russia and will be finished once the contract is finalised.

U.S. technology companies are girding for changes to immigration policy (Register and Login to read Full News)

PM says govt will take more tough actions (Register and Login to read Full News)

EC set rules in motion (Register and Login to read Full News)

:: International

Iraqi forces discovered a mustard chemical warfare agent

• Iraqi forces discovered a mustard chemical warfare agent in eastern Mosul alongside a cache of Russian surface-to-surface missiles, an Iraqi officer said.

• Iraqi and U.S. officials have repeatedly warned of Islamic State (IS) group’s efforts to develop chemical weapons.

• When Iraqi forces retook Mosul University earlier this month, they found chemistry labs they believed had been converted into makeshift chemical weapons labs.

• The number of casualties due to IS chemical weapons is a small fraction compared to the hundreds of civilians killed in car and suicide bombings carried out by the group.

• Experts say that is largely due to the low grade of the weapons and the group’s lack of access to efficient delivery systems.

:: Business and Economy ::

India’s trade with Iran is yet to be fully normalised

• India’s trade with Iran is yet to be fully normalised even a year after the lifting of international sanctions on Tehran.

• Indian exporters are complaining of difficulties faced by them due to some Indian nationalised banks refusing to deal with Iran-related transactions, according to  the Federation of Indian Export Organisations (FIEO).

• This is despite RBI, in a notification in May 2016, specifying that payment or remittance or reimbursement can be made from or to Iran in any freely convertible currency for imports from Iran and exports to that country.

• Both the nations had agreed in 2012 that 45% of India’s oil import payments to Iran would be paid in rupees and deposited in UCO Bank as that bank hardly had an exposure to U.S. or European Union.

• In turn, Iran was to utilise that amount to pay for its imports from India. It is learnt that the balance in the rupee account may not be sufficient to cover three months of India’s exports to Iran.

• A senior official in a public sector bank, however, said on condition of anonymity that there have been no problems regarding Iran-related transactions in currencies other than the U.S. dollar.

• Exporters and importers have been advised to carry out their transactions in currencies such as the Euro wherever possible, banks still have apprehensions that the U.S. regulators could take arbitrary decisions on Iran's transactions.

• India’s trade with Iran in FY’16 was $9 billion, of which $6.3 billion were imports from Iran (of which $4.5 billion was the oil import bill), while India’s exports were worth only $2.7 billion.

• Of the $5.4 billion worth imports from Iran in April-October FY’17, oil imports were $4.5 billion. India’s exports to Iran during April-October FY’17 were $1.4 billion.

• The trade between these two countries were worth $16.2 billion in 2011-12 (India’s exports of $2.4 billion and imports from Iran worth $13.8 billion).

India Post has received payments bank licence from the Reserve Bank of India

• India Post has received payments bank licence from the Reserve Bank of India to start roll-out of banking operations commercially under the permit.

• Payments banks can accept deposits up to Rs. 1 lakh per account from individuals and small businesses.

• The new model allows mobile firms, supermarket chains and others to cater to banking requirements of individuals and small businesses.

• It will be set up as a differentiated bank and will confine its activities to acceptance of demand deposits, remittance services, Internet banking and other specified services.

• In 2015, RBI had granted ‘in-principle’ approval to 11 entities to set up payments banks.

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