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Current Affairs Update 5 May, 2017

Financial and Banking News

RBI gets nod to embark on India's biggest banking clean-up

The RBI will embark on its biggest banking clean-up exercise after President Pranab Mukherjee
promulgated an ordinance authorising it to issue directions to banks to initiate insolvency resolution
process in the case of loan default.

The tweak in the rules will help the Modi government tackle toxic loans that have crossed the Rs 6
lakh crore mark.

So, what does this mean?

The ordinance promulgated by the government on bad loans has now empowered the RBI to issue
directions to banks for resolution of stressed assets. This basically implies the central bank can
issue directions to any banking company or banking firms to initiate insolvency resolution process
with respect to a default under the provisions of the Insolvency and Bankruptcy Code, 2016.

It has also empowered RBI to issue directions to banks for resolution of stressed assets.

The law will also empower RBI to set up sector related oversight panels that will shield bankers
from later action by probe agencies looking into loan recasts.

RBI will be able to give specific solutions with regard to hair cut for specific cases and also, if
required, look at providing relaxation in terms of current guidelines.

The central bank wants to resolve 60 largest delinquent-loan cases in nine months, a person familiar
with the matter told Bloomberg.

Ridding bank balance sheets of stressed assets is key to reviving credit growth and furthering Prime
Minister Narendra Modis goal of creating more jobs in the $2 trillion economy.

Various schemes proposed by RBI to resolve the problem have been unsuccessful, with lenders
reluctant to write down assets sufficiently and company owners unwilling to negotiate repayment
plans.

Stressed assets -- bad loans, restructured debt and advances to companies that cant meet servicing
requirements -- have risen to about 17 percent of total loans, the highest level among major
economies, data compiled by the government shows.

TCS launches first drones research lab in Cincinnati, Ohio

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TCS has opened its first Drones Research Lab in the US at its Seven Hills Park Innovation Center located
in Cincinnati, Ohio, to address the rapidly expanding demand for unmanned aerial vehicles and
business solutions across industries.

The TCS Drones Research Lab featuring both indoor labs, showcase, warehouse, and outdoor terrain
footprints provides a rapid experimentation and co-innovation environment for customers to build
solutions for specific industry problems in accelerated 30-60-90-day delivery cycles, the company said
in a statement.

FAA part 107 certified TCS pilots based at the lab fly fully equipped drones to collect data for specific
industry use cases. Advanced computer vision, machine learning and deep learning algorithms enable
fully automated processing of the drone captured images to reveal precise insights.

News related to India and states

South Asia Satellite successfully launched

Indian Space Research organisation (ISRO) on 5 May 2017 successfully launched the South Asia
Satellite. The communication and broadcasting satellite was launched with Geosynchronous Satellite
Launch Vehicle GSLV F-09 from the second launch pad of the Satish Dhawan Space Centre at
Sriharikota at 4.57 pm.

The South Asia Satellite was launched after a 28-hour long countdown that started on 5 May 2017 at
12.57pm.

Participating nations: Six of Indias neighbours including Afghanistan, Bangladesh, Bhutan, Nepal,
Srilanka and the Maldives were the participants of the space-based regional communication project.

Pakistan is not a part of this regional communication satellite project because it denied from being a
part of the project.

Facebook launches Express WiFi in India

Facebook on 4 May 2017 launched Express WiFi service commercially in India.

The Express WiFi offers Internet facility through public hotspots to users in rural parts of India.

The social network giant partnered with telecom operator Bharti Airtel that plans to bring an
additional 20000 hotspots online.

The company previously launched the service commercially in Kenya.

The launch of the service comes a year after Facebook put an end to the controversial "Free Basics"
programme that drew severe criticism from advocates of net neutrality.

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Andhra Pradeshs Banganapalle mango gets Geographical Indication tag

The Banganapalle mango in the first week of May 2017 received a Geographical Indication (GI) tag.
This makes Andhra Pradesh the proprietor of the variety known for its sweetness.

O P Gupta, the Registrar of Geographical Indications Registry, Chennai, accorded the registration
following an application from Andhra Pradesh Horticulture Commissioner.

The Andhra Pradesh government is the registered proprietor of the GI tag for Banganapalle mangoes,
often hailed as the king of fruits.

MP CM Shivraj Singh Chauhan inaugurates world level weapon production unit in Bhind district

The world level weapon production unit Punj Lyod Defence System was inaugurated in Malanpur
Industrial Area of Bhind district of Madhya Pradesh. The unit was jointly inaugurated on 4 May 2017
by Chief Minister of Madhya Pradesh Shivraj Singh Chouhan and Union Rural Development Minister
Narendra Singh Tomar.

The state government claimed that it is the first small weapon manufacturing unit in private sector in
the country. It has been set up in the joint partnership of Indias Punj Lyod and Israel Weapon Industry
under the Make in India Programme.

The joint venture company, Punj Lloyd Raksha Systems, will help the armed forces in replacing their
weapons with sophisticated and high precision products.

Appointments

Prabhat Kamal Bezboruah appointed as Chairman of Tea Board of India

Renowned tea planter from Assam Prabhat Kamal Bezboruah, who was once a banker in the US, was
on 4 May 2017 appointed as the Chairman of the Tea Board of India. Bezboruah will have a tenure till
November 2018.

With this, Bezboruah became the first non-IAS and the first industry insider to head the Kolkata-
headquartered Tea Board, the governing body of the industry.

On the other hand, renowned coffee grower M S Boje Gowda was appointed as Chairman of the Coffee
Board of India. He will serve the post till December 2018.

Braj Bihari Kumar to succeed economist S K Thorat as ICSSR Chairman

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The Union government has appointed Braj Bihari Kumar, editor of quarterly journals Dialogue and
Chintan Srijan, as the new Chairman of the Indian Council of Social Science Research (ICSSR).

Kumars name was finalised for the top position by the Union Ministry of Human Resource
Development on 2 May 2017. He would be succeeding noted economist S K Thorat, who was
appointed by the former UPA government.

Sports

India placed at 100th spot in FIFA Rankings after 21 years

The Indian football team made it into the top 100 of the FIFA World Rankings for the first time in 21
years.

The team is placed at 100th alongside Nicaragua, Lithuania and Estonia. The FIFA rankings were
released on 4 May 2017.

India's rise in the rankings has been due to triumphs over Cambodia and Myanmar.

It was in February 1996 that India was placed on the 94th spot, which is the country's best ever FIFA
ranking.

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