SBI Current Affairs - 2019

Category Wise PDF Compilations available at This Link

Odisha becomes first state to adopt SHG based financial inclusion model

Odisha became the first state in the country to adopt Self Help Groups (SHG) based model for financial inclusion model to extend banking services in the unbanked areas through SGHs.

In this regard, state government has inked agreement with the State Bank of India (SBI). The SHGs formed under the Odisha Livelihood Mission (OLM) will be eligible to provide banking services.

Key Facts
  • The agreement assumes significant as 70% of the gram panchayats in the State do not have brick and mortar bank branches.
  • As per the agreement, OLM will function as corporate agent and around 3 lakh SHGs operating under it will be the banking correspondents (BCs).
  • In the first phase SHGs will be engaged as BCs in around 1000 remote GPs in scheduled areas having no banking facilities.
  • Gradually in later phases, it will be extended to 4000 non-banked GPs. Subsequently entire State will be covered under the financial inclusion programme.

About Odisha Livelihoods Mission (OLM)

  • Odisha Livelihoods Mission (OLM) an autonomous society of Department of Panchayati Raj of the state government. It commenced its operations in 2012.
  • It is successor of Orissa Poverty Reduction Mission (OPRM) launched in 2006 to implement various poverty reduction programmes in the state.
  • OLM presently is implementing both National Rural Livelihoods Mission (NRLM) and National Rural Livelihoods Project.
  • Odisha was the first state in the country to launch NRLM in its bid to bring down rural poverty by promoting diversified and gainful self-employment to the rural poor.
  • OLM aims at: (i) Mobilizing all poor households into functionally effective SHGs and their federations (ii) Enhancing their access to bank credit and other financial, marketing and technical services (iii) Building their capacities and skills for sustainable and gainful livelihoods development; (iii) Converging various schemes for efficient delivery of economic and social support services to poor with optimal results.

Jammu and Kashmir has no sovereignty: SC

The Supreme Court in a landmark verdict held that Jammu and Kashmir is an integral part of India and did not enjoy sovereign status, either under its constitution or that of India.

The apex court made this observation while hearing on appeal filed by State Bank of India (SBI) and other banks over the issue of recovery of loans under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002. It affirmed that J&K’s constitution was subordinate to the Indian Constitution and its permanent residents were Indian citizens.

What is the issue?

The SBI and other banks had appealed against Jammu and Kashmir High Court verdict given in July 2015. The J&K HC had held that the SARFAESI Act, 2002 enacted by the Parliament was not valid in respect of the permanent residents of the state as it collides with the Transfer of Property Act of Jammu & Kashmir, 1920. It had held that law made by Parliament which affects the laws made by a State legislature cannot be extended to J&K. In its judgment, the HC had repeatedly referred to the sovereignty of the state and held that Section 5 of the Constitution of J&K gives absolute sovereign power to state to legislate in respect of laws touching the rights of its permanent residents qua their immovable properties.

Supreme Court Verdict set aside HC verdict and held that 
  • Section 3 of the constitution of J&K, states that the state of J&K is and shall be an integral part of the Union of India. This provision is beyond the pale of amendment.
  • Thus, it is clear that J&K has no vestige of sovereignty outside the Constitution of India and its own constitution, which is subordinate to the Constitution of India.
  • Preamble to the J&K’s constitution also does not talk about sovereignty of citizens of the state. Thus, J&K HC has gone out of its way “to refer to a sovereignty which does not exist.
  • Permanent residents of J&K are citizens of India and there is no dual citizenship as is contemplated by some other federal Constitutions in other parts of the world.
  • Therefore, it is wholly incorrect to describe it as being sovereign in the sense of its residents constituting a separate and distinct class in themselves.
  • The provisions of the SARFAESI Act, 2002, are within the legislative competence of Parliament and can be enforced in J&K.

Note: SARFAESI Act’s provision entitles banks to auction properties to recover loans.