Financial services Current Affairs

India, UAE inks 5 MoUs

India and United Arab Emirates (UAE) have signed five Memorandum of Understanding (MoUs) in key areas of energy sector, railways, manpower and financial services.

These agreements were signed in PM Narendra Modi’s visit to Abu Dhabi. They were signed in presence of PM Modi, Crown Prince of Abu Dhabi HH Sheikh Mohammed bin and Deputy Supreme Commander of UAE Armed Forces Zayed Al Nahyan at the Presidential Palace, Abu Dhabi.

Signed Agreements are

  • MoU for Technical Cooperation in Rail Sector
  • MoU to institutionalise the collaborative administration of contractual employment of Indian workers in UAE.
  • MoU between Indian Consortium (OVL, BPRL & IOCL) and ADNOC: It was signed for acquisition of 10% participating interest in the offshore Lower Zakum Concession.
  • MoU between Bombay Stock Exchange (BSE) and Abu Dhabi Securities Exchange (ADX): It seeks to enhance cooperation between both the countries in financial services industry.
  • MoU between Government of Jammu and Kashmir and DP World: It seeks to establish multi-modal logistics park and hub in Jammu comprising warehouses and specialized storage solutions.

India-UAE Relations

India-UAE Relations deeply rooted in history and strategic cooperation which is driven by mutual aspirations of both countries. UAE is lynch-pin of the economic, defence and strategic strands of  India’s coordinated strategy to outreach west Asia.

UAE is India’s third largest trading partner after China and the United States. Bilateral trade between India and UAE stood at about $50 billion in 2015-16. It is among the top investors in India in terms of foreign direct investments (FDI) and was the fifth largest supplier of crude oil to India in 2015-16. Besides, there are also more than 2.6 million Indians living in the UAE and their annual remittance is estimated to be around $14 billion.

Month: Categories: India Current Affairs 2018

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Government invites comments for creating new Financial Redressal Agency

The Union Government has invited public comments on a report for the creation of a Financial Redressal Agency (FRA).

The report also calls for a new financial consumer protection and redressal legislation and also recommends an initial budget of Rs. 100 crore for the setting up of the FRA.

Key Facts
  • The objective of FRA will be to address the grievances of retail consumers against all financial service providers in an easy, transparent and cost-effective manner.
  • It will offer a simplified resolution process to allow retail consumers in distant and remote locations to pursue effective remedies without imposing significant costs on them.
  • FRA will try to resolve all complaints through mediation. Cases where parties are unable to reach a settlement will be resolved through a light-touch adjudication process.
  • It will establish a front-end presence in diverse locations for consumers to submit complaints and discourage court-like processes.
Why there is need for FRA?

There are substantial inadequacies in the current redressal system. The average consumer is put under unnecessary stress as he has to approach different redress agencies based on nature of product. This stress is further amplified due to varying levels of consumer protection across regulators. In some instances, regulated financial service providers (FSPs) are not covered within the scope of the concerned regulator’s redress functions. Further, there is a lack of powers to award compensation in some cases, pushes consumers to courts or consumer forums. Even the present systems do not have a specialised cadre of redress professionals and there is possibility of a conflict of roles between the various redressal agencies.

Background

Union Finance Minister Arun Jaitley in his 2015-16 budget speech had announced creation of a sector-neutral FRA, following the recommendations of the Financial Sector Legislative Reforms Commission (FSLRC). The FSLRC in 2013 had recommended an FRA as part of the regulatory framework aimed at fostering customer protection and regulator independence and accountability.

Month: Categories: Business & Economy Current Affairs 2018India Current Affairs 2018

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