India, Seychelles ink 6 MoUs

India and Seychelles have signed six Memoranda of Understanding (MoUs) including in area of infrastructure development in Seychelles, cyber security and white-shipping arrangement. The agreements were signed between both countries after bilateral talks between Prime Minister Narendra Modi and visiting Seychelles President Danny Faure in New Delhi.

India has announced US $100-million credit to Seychelles for augmenting its defence capabilities. It also announced to hand over second Dornier aircraft to Seychelles as promised by PM Modi during his visit there in 2015. The aircraft will reach Seychelles before its National Day on June 29, 2018.

Signed agreements are

  • MoU regarding Indian Grant Assistance for implementation of small development projects through local bodies, educational and vocational institutions.
  • Twinning Agreement on Establishment of Friendship and Cooperation between Panaji (Municipal Corporation), Goa (India) and Victoria City of Seychelles
  • MoU in the area of Cyber Security: It was signed between Indian Computer Emergency Response Team (CERT-in) and Seychelles’ Department of Information Communications Technology.
  • Cultural Exchange Programme between India and Seychelles for the years 2018-2022
  • Technical Agreement on Sharing White Shipping Information between Indian Navy and National Information Sharing and Coordination Center of Seychelles: It will enable the two countries to exchange data regarding identity and movement of non-military commercial vessels
  • MoU between Foreign Service Institute (FSI) of Ministry of External Affairs of India and Department of Foreign Affairs of Seychelles.

Key Takeaways from talks bilateral talks

Assumption Island: Both India and Seychelles have agreed to work together on project to develop naval base at Assumption Island keeping each other’s concerns in mind. Both countries are key strategic partners for each other and they respect the core values of democracy. They share geo-strategic vision of maintaining peace, security and stability in Indian Ocean Region (IOR).

Defence and security cooperation: Both countries share robust defence and security cooperation. The US $100-million credit from India to enable Seychelles to buy defence equipment to boost its maritime capacity. Both countries have strategic convergence in dealing with maritime challenges. Both countries are straddled between one of important Sea Lanes of Communication and vulnerable to piracy. They face dangers of international crimes such as piracy, drugs, human trafficking and illegal exploitation of oceanic resources. India is committed to augment Seychelles defence capabilities, maritime infrastructure and increase capabilities of its defence personnel.

Month:  Categories: International

Tags:

RBI proposes Board of Management for urban co-operative banks

The Reserve Bank of India (RBI) has proposed setting up of Board of Management (BoM) in all Urban Co-operative Banks (UCBs) having deposits of over Rs 100 crore within one year to strengthen governance and promote professional management in these banks.

BoM will be in addition to the Board of Directors (BoD). The BoD will continue to be apex policy setting body and constitute various committees of board including BoM to assist it to carry out its functions.

Key Facts

Functions: BoM will look after all administrative functions of UCBs as spelt out in respective Co-operatives Act. It will be responsible for credit, risk and liquidity management of UCBs. It will consider loan proposals, recommend action for recovery of bad loans, implement sound internal controls and oversee compliances, among others.

Composition: BoM will be constituted by BoD. BoM will have  minimum of 3 members in UCBs having deposit size up to Rs 100 crore and 5 members in UCBs having deposit size above Rs 100 crore. The maximum number of members in BoM will not exceed 12. Not more than 50% of BoM members should be from BoD. Under all circumstances, BoM should have atleast two members outside from BoD.

Criteria: 50% of the members of BoM will consists of persons having special knowledge or practical experience in respect of one or more of the following matters such as accountancy, agriculture and rural economy, banking, co-operation, economics, finance, law, small scale industry, information technology and other matter the special knowledge useful to UCB.

Implementation: Existing UCBs having deposit size exceeding Rs 100 crore will set up BoM within period of 1 year and banks less than it may constitute BoM within 2 years.

Background

The expert committee on licensing new urban co-operative banks (2010) constitued under chairmanship of YH Malegam had recommended that BoM should be constituted in every UCB, in addition to BoDs. This was reiterated by  high powered committee on UCBs headed by R. Gandhi constituted in January 2015 by RBI. Under the present legal framework, BoD of UCB performs both executive and supervisory roles and has responsibility to oversee functioning of UCB as cooperative society and as a bank.

Month:  Categories: Business, Economy & Banking

Tags:

Monthly Current Affairs Compilations are also available in GKToday's Academy App for Android Mobiles. Download Now