Business, Economy & Banking Current Affairs

RBI constitutes YH Malegam committee to monitor bad loans, rising cases of frauds, audits

Reserve Bank of India (RBI) has constituted an expert committee to look into the entire gamut of issues relating to classification of bad loans, effectiveness of audits and rising incidents of frauds. The committee will be headed by Y H Malegam, a former member of Central Board of Directors of RBI.

Terms of References

The committ will look into reasons for high divergence observed in asset classification and provisioning by banks vis-à-vis RBI’s supervisory assessment. It will suggest steps needed to prevent it, factors leading to increasing incidence of frauds in banks and measures (including IT interventions) needed to curb and prevent it. It will also look into role and effectiveness of various types of audits conducted in banks in mitigating the incidence of such divergence and frauds.

Background

The committee was set up in wake up of Rs 11,400 crore SWIFT (Society for Worldwide Interbank Financial Telecommunication)-related fraud in Punjab National Bank (PNB) and RBI’s drive  of strengthening supervisory framework in the country to avoid frauds. Government also had asked RBI whether it has at any stage detected fraud, involving letter of undertaking (LoUs) issued to foreign branches of Indian banks on behalf of companies promoted by Nirav Modi and Mehul Choksi.

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PM Narendra Modi inaugurates World Information Technology Congress 2018

Prime Minister Narendra Modi inaugurated World Information Technology Congress (WITC) 2018 in Hyderabad, Telangana via video conference. The theme of this edition of conference was ‘Future Enterprises.’

It was hosted by Telangana Government, in association with country’s top IT body, National Association of Software and Services Companies (NASSCOM) and global IT organization World Information Technology and Services Alliance (WITSA).

Key Facts

This is for first time India is hosting WITC. It will second time that the event will be taking place in Asia after it was hosted in Kualalumpur, Malaysia in 2008. Around 2500 delegates and top IT honchos from across the world participated in the maga IT event. Representatives from IT industries from around 80 countries took part in the conference. Moreover, at least 20 CEOs from Fortune 500 companies and 100 other top executives attended the conference.

World Information Technology Congress (WITC)

WITC is a biennial event and considered as the biggest event of its kind. It aims provide single platform to IT experts, policy and decision makers and Government officials from all over the world together to discuss various challenges and possible solutions to them. It is unique in its global perspective on ICT issues and its ability to draw users, providers, media and academia from around the world. It was first held in 1978 since then held after every two years. The 2014 WITC was held in Mexico and had focused on the theme of ‘Digital World’ and 2016 edition was held in Brasilia, Brazil.

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