Current Affairs – November, 2013

Latest Current Affairs November, 2013 with Current Affairs, news summary on current events of National and International importance of November, 2013 for Banking, SSC, CLAT, UPSC, State PCS, IBPS, Railways and other Competitive Examinations.

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RBI permits foreign banks’ subsidiary to acquire private banks

As per the guidelines released by the Reserve Bank of India (RBI), the Wholly-Owned Subsidiary (WOS) of foreign banks are allowed to acquire domestic private sector banks as well as open branches anywhere in the country. In addition, as per the guidelines:

  • Foreign bank subsidiary are permitted to be listed on local stock exchanges.
  • As a condition, foreign bank subsidiary will not be permitted to acquire more than 74%, the sectoral limit for overall foreign investment, in the private banks they may acquire.
  • WOSs will be given near national treatment which will facilitate them to open branches anywhere in the country at par with Indian banks (except in certain sensitive areas where the Reserve Bank’s prior approval would be required).
  • The initial minimum paid-up voting equity capital or net worth for a WOS would be Rs 500 crore.
  • As a measure of prevention against the possibility of the Indian banking system being dominated by foreign banks, there are certain measures to contain their expansion if the share of foreign banks exceeds a critical size.
What is the critical point beyond which RBI will not allow foreign investments?

RBI will prohibit further entry of new WOSs of foreign banks or capital infusion, when the capital and reserves of all foreign banks in India exceed 20% of the capital and reserves of the entire banking system.

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HRD Ministry gives nod to set up IIT, IIM, 3 central varsities in Seemandhra

The HRD ministry has given its nod to establish an IIT, an IIM and 3 central universities among other institutes for the region. The decision would be placed before the GoM for consideration. The ministry has also cleared an IISER and an IIIT for the region.

Why this decision to set up IIT, IIM, 3 central varsities in Seemandhra, by HRD Ministry ?

This has been done in a bid to compensate the Semandhra region for the loss it will face due to the bifurcation of Andhra Pradesh. As we know that the state of Andhra Pradesh is undergoing bifurcation to form two new states comprising Telangana region and Semandhra region. The move would leave the Seemandhra region without any of the elite higher educational institutes which are mostly concentrated in Hyderabad in the Telangana region. The current decision of the HRD Ministry is aimed at striking a balance between the two regions as far as establishment of premier institutes are concerned. For setting up the institutes an investment in the range of Rs 6,000 to Rs 7,000 crore would be required.

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