CURRENT AFFAIRS 5-6th Oct., 2014

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CURRENT AFFAIRS 6th Oct., 2014

1. According to IMF paper titled 'Food inflation in India- Role of Monetary policy', RBI must increase the interest rates to contain persisting food and fuel inflation in India. It suggested that the government should pursue structural reforms to push growth to potential levels instead of relying on monetary policy to promote growth.

2. Banks have sought clarity from the Finance Ministry regarding taxation of additional tier-I bonds through which they are expected to raise capital to meet Basel III norms. Additional tier-I bonds come with loss absorbency features meaning that in case of stress, banks can write off such investments or convert them into common equity.

3. Finance ministry has begun discussions with the Reserve Bank of India to put in place a committee to set monetary policy that will be geared to an inflation target. The proposal is along the lines of high-level panels such as the Urjit Patel committee and the BN Srikrishna-headed Financial Sector Legislative Reforms Commission. Currently governor decides the monetary policy and RBI board has an advisory role.

4. Government will propose a comprehensive policy on intellectual property rights (IPR) which would pave the way for setting up special IPR courts comprising experts to fast-track adjudication on infringement cases concerning all forms of IPRs. A separate legal regime for ‘utility patents’ for incremental innovations will also be proposed. The regime would have a less stringent criteria when compared to a normal patent.

5. Centre has prepared a revised Constitution Amendment Bill for the Goods and Services Tax that largely accommodates the demands made by states. The government has set a target of 2016 for the launch of the pan-India indirect tax regime. The GST aims at subsuming most of the indirect taxes at the Central as well as state level.

CURRENT AFFAIRS 5th Oct., 2014

1. RBI Governor Raghuram Rajan has asserted that there is no worry regarding the flow of bank credit to the country’s real estate. The credit growth has come at a time when demand has slowed sharply and inventories have been building up. It may not lead to asset bubbles in emerging economies.

2. Bollywood actor Shah Rukh Khan received Global Diversity Award 2014 at the Britain’s House of Commons for his outstanding achievements in the field of cinema and his involvement in philanthropic endeavours.

3. Prime Minister Narendra Modi will launch four labour reform schemes, aimed at lessening hassles for employees and creating conducive environment for businesses on October 16. The proposed event is titled 'Shrameva Jayate' and will launch Universal Account Number (UAN) facility for Employees Provident Fund Organisation (EPFO) subscribers, a new inspection scheme, a unified web portal to check labour law-compliance and merging of three welfare schemes.

4. The real estate investment trusts (Reits) proposed in budget 2014-15 might not get a full pass-through status ie., taxes on the income distributed by Reits to unit holders will be paid by unit holders and not the Reits. Reits are listed entities investing in income-producing real estate assets, the earnings of which are mostly distributed to shareholders.

5. Microsoft Corp is demanding $6.9 million interest from Samsung Electronics in a dispute over smartphone patent royalties. Microsoft demands the hefty amount as Samsung delayed interests in protest at Microsoft's planned purchase of rival Nokia's handset business.