GS Paper I- History and Geography of the world and Society.

Indian-Origin Banker MAS Chief Ravi Menon Named Best Governor Of Asia Pacific.

 

Background

  • The managing director of the Monetary Authority of Singapore (MAS), Ravi Menon, has been named the best central bank governor in Asia-Pacific for 2018 by UK-based magazine, The Banker.
  • This annual award administered by The Banker, a publication under The Financial Times Group, is based on a selection process involving a survey of bankers and economists.
  • Finance Minister Heng Swee Keat was also given this award in 2011 when he was then MAS’s managing director. Over the last three years, the award went to the central bankers of Vietnam, India and Bangladesh.

 

Highlights Of The Development-

  • The Banker magazine said in an article pertaining to the award to Mr Menon that the Monetary Authority of Singapore (MAS), the country’s central bank, stands out for its cutting-edge regulatory approach to fintech while maintaining macroeconomic stability. These are the key reasons for selecting Ravi Menon, managing director of MAS, as the Central Bank Governor of the Year for Asia-Pacific.
  • The magazine noted that the MAS was among the first regulators to set up a dedicated fintech group that focuses on understanding technology’s risks and benefits.
  • Mr Menon added in his interview with The Banker that one can only encourage technology to the extent that one can also contain and manage its risks. A smart financial centre must be a safe financial centre as well.

Sources- Business Times.

 

GS Paper II- Governance.

Cabinet Approves Fixed Term For Chairperson And Members Of The National Trust.

Background

  • The chairperson and the members of the board of the National Trust, an autonomous body under the Ministry of Social Justice and Empowerment, will now have a three-year fixed term in office.
  • The Union Cabinet chaired by the Prime Minister Shri Narendra Modi, at its meeting on 10th January, 2018, has approved the proposal to amend Section 4(1) and Section 5(1) of the National Trust for the Welfare of Person with Autism, Cerebral Plasy, Mental Retardation and Multiple Disabilities Act, 1999 to fix the term of the Chairperson and Members of the Board of National Trust for three years.

Highlights Of The Development-

  • At present, Section 4(1) of the National Trust Act, 1999 provides that the Chairperson or a Member of the Board of National Trust would continue in office beyond the prescribed term of three years until his successor shall have been duly appointed.
  • In case of resignation of the Chairperson, section 5(1) of the Act provides for him to continue in office until his successor is duly appointed by the Government.
  • The wording of the above provisions of the Act in its present form has resulted in continuation of a Chairman for an indefinite period as no suitable successor could be found eligible for appointment.
  • The proposed amendments in these provisions of the Act seek to avoid such a situation and will thus eliminate any chance of prolonged continuation in the same post by any incumbent.

Sources- Deccan Herald.

 

GS Paper III- Economic Development.

TIHCL Gets RBI Nod To Operate As NBFC.

Background

  • Telangana Industrial Health Clinic Ltd (TIHCL), a State government initiative, has got RBI clearance to register and function as a non-banking finance company (NBFC).
  • It will be the first State promoted and co-financing NBFC, according to B Yerram Raju, TIHCL’s advisor and director. TIHCL was floated in 2017 with a corpus of ₹100 crore, which included contributions from the State and Central governments, financial institutions, industrial units and high networth individuals.
  • Lenders such as Karur Vysya Bank, Vijaya Bank, Canara Bank, Union Bank, SBI and SIDBI have evinced interest in partnering with TIHCL.
  • TIHCL’s innovative institutional intervention to resolve the stressed assets in micro and small manufacturing enterprises attracted the attention of policymakers at the national level, said Yerram Raju.

Highlights Of The Development-

  • TIHCL had won the SKOCH Platinum Award in September 2017 under the smart governance category in the MSME segment.
  • In the past couple of months, its proof of concept resulted in 23 micro and small enterprises contributing to the share share capital to an extent of ₹2.30 lakh.
  • TIHCL advised these enterprises in the resolution of the stress they faced from banks — the SARFAESI Act 2000 notice was vacated for a few while for others it helped get over stress from improper management decisions.
  • The Telangana government sponsored it as an SPV of the State Industrial Development Corporation initially and registered it as a public company under the Companies Act of 2013 with an investment of ₹10 crore from the State budget.
  • TIHCL expects to pursue a multipronged strategy of filling in the credit gap that exists for micro manufacturing enterprises, help small enterprises access equity markets as well as revive and restructure viable manufacturing MSEs.
  • On the revival front, Yerram Raju said, TIHCL will provide bridge finance, but not to those entrepreneurs who are wilful defaulters.
  • The target is to assist 5-10 enterprises a month in every district. In worst cases it will handhold the enterprise for the first year of revival to ensure that the projected cash flows are realised and the financial discipline is adhered to by the viable unit.

Sources- The Hindu Business Line.