Current Affairs - January, 2019

Latest Current Affairs January, 2019 with Current Affairs, news summary on current events of National and International importance of January, 2019 for Banking, SSC, CLAT, UPSC, State PCS, IBPS, Railways and other Competitive Examinations.

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Relaxation of Norms under PCA Framework

It is said that the finance ministry and the Reserve Bank of India are working on providing some relaxation on the prompt corrective action (PCA) framework for stressed banks.

Prompt Corrective Action (PCA) Framework

Prompt Corrective Action (PCA) framework has been issued by the RBI to maintain the sound financial health of banks. The RBI will initiate certain structured and discretionary actions for the bank under the PCA. The PCA framework kicks in when the Banks breach any of the three key regulatory trigger points

  • Capital to risk-weighted assets ratio
  • Net non-performing assets
  • Return on assets.

The PCA framework is aimed at nudging the banks to take corrective measures in a timely manner, in order to restore their financial health.

Eleven Banks which are under PCA framework are Dena Bank, Central Bank of India, Bank of Maharashtra, UCO Bank, IDBI Bank, Oriental Bank of Commerce, Indian Overseas Bank, Corporation Bank, Bank of India, Allahabad Bank and United Bank of India.

Why there is a proposal for providing relaxation now?

After several measures taken for capital infusion in the Public Sector Banks, the Banks are well-capitalised. Even though the banks have not only shown improvement on recoveries but have further de-risked their portfolios. The relaxation would aid banks in exiting the PCA framework.

The Parliamentary Committee on Finance had observed that “It is not clear as to how these banks will turn around their operations with the existing curbs on lending and even deposit-taking in the case of some. This could trigger a vicious cycle in the banking sector and the economy at large”. The committee had recommended reviewing the PCA framework.

Month: Categories: Business, Economy & Banking Current AffairsUPSC Current Affairs - 2019

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Supreme Court issues notice to Centre on PIL against notification under IT Act

The Supreme Court has issued a notice to the Central government on PIL which questioned the notification authorising 10 central agencies to intercept, monitor and decrypt any computer system.

What was the notification?

Under the notification, the central government had empowered 10 agencies, Intelligence Bureau, Narcotics Control Bureau, Enforcement Directorate, the Central Board of Direct Taxes (for Income Tax Department), Directorate of Revenue Intelligence, Central Bureau of Investigation, National Investigation Agency, the Research and Analysis Wing, Directorate of Signal Intelligence (in service areas of J-K, North East and Assam) and Delhi Police commissioner to intercept, monitor and decrypt any computer system.

PIL challenges the Notification

The notification is challenged on the following grounds:

  • The notification was illegal, unconstitutional and ultra vires to the law.
  • The notification gives State the right to access every communication, computer and mobile and to use it to protect the political interest and object of the present executive political party.
  • The notification was an attempt to create a surveillance state.

The PIL also sought to prohibit the agencies from initiating any criminal proceedings, enquiry or investigation against anybody under the provisions of the IT Act based on the notification. The Supreme Court issuing a notice to the central government and has asked to respond in six weeks.

Month: Categories: India Current Affairs 2018UPSC Current Affairs - 2019

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