Current Affairs 5th June

National Affairs

1. MoRTH allows e-Bank Guarantee, Insurance Surety Bonds as bid

The Service of Street Transport and Interstates (MoRTH) has endorsed the acknowledgement of eBank Assurance (BG) and Protection Guarantee Bonds as a bid security and execution security in standard reports (Solicitation for Proposition (RFP) and Modet concession Understanding (MCA)) of Designing, Acquisition, and Development (EPC), Mixture Annuity Model (HAM) and Assemble Work Move (BOT) (Cost) projects.

 

This decision is the result of recent changes made by the Ministry of Finance’s Department of Expenditure to the General Financial Rules (GFRs) 2017 regarding the acceptance of e-BG and Insurance Surety Bonds as means of performance and bid security.

Key Points:

 

Insurance surety bonds can replace existing contracts, such as those for road development, toll contracts, ropeways, and any other contract for which the Ministry has prescribed a BG, according to the approval.

 

If e-bank guarantees are impractical, physical bank guarantees—also known as bid security or performance security—may be accepted.

 

Surety bond insurance transfers risk and provides financial protection in the event of nonperformance, reducing infrastructure developers’ reliance on bank guarantees.

Additionally, it necessitates less collateral and provides funds for business expansion.

 

To lessen infrastructure developers’ reliance on BG, Union Minister Nitin Gadkari and the Ministry of Finance introduced the nation’s first surety bond insurance product in December 2022.

 

Contractors hired by the state-owned National Highways Authority of India (NHAI) and National Highways & Infrastructure Development Corporation Ltd. (NHIDCL) have recently received permission from the Ministry of Finance to convert their bank guarantees into insurance surety bonds.

 

Static Factors:

 

A Bank Assurance (BG) is a monetary instrument utilised as a legitimate agreement in which a bank goes about as an underwriter and embraces a commitment to pay the recipient a specific measure of cash determined in the assurance, on the off chance that the borrower from the first agreement doesn’t satisfy his authoritative commitments.

 

Insurance Surety Bonds are contracts in which insurance companies serve as “Surety” and provide a financial guarantee that the contractor will carry out its responsibilities in accordance with the terms that were agreed upon.

 

Service of Money has made e-BG and Protection Guarantee Securities at standard for all Administration obtainments.

2. G20 3rd Employment Working Group Meeting held in Geneva 

The third Employment Working Group (EWG) meeting, which was held at the International Labor Organization (ILO) headquarters in Geneva, Switzerland, from May 31 to June 2, 2023, was a success under the G20 (Group of Twenty) Indian Presidency.

 

It was presided over by Ms. Arti Ahuja, Secretary, Labor and Employment, and Chair of the G20 EWG.

 

Participation:

 

The meeting was attended by 78 G20 members, nine guest nations, and four international organizations.

 

The Service of Work and Business’ worldwide information accomplices for example Worldwide Work Association ILO), Association for Financial Participation and Improvement (OECD), Global Government backed retirement Affiliation (ISSA), World Bank (WB) and a homegrown information accomplice, for example, Service of Ability Improvement and Business venture, Administration of India, joined in the gathering to give their specialized aptitude to the gathering.

 

Key Points:

 

Regarding the three G20 EWG priority areas, the members came to a broad consensus on the draft Ministerial Communique and Outcome documents.

 

The ILO and the Organization for Economic Cooperation and Development (OECD) provided progress updates on the Antalya and Brisbane Targets, highlighting the need for accelerated efforts to achieve the goals.

 

Key results under the Indian Administration incorporate the improvement of a worldwide

reference characterization of occupations and the expansion of ILO and OECD’s Abilities for Occupations Information base to G20 nations to address worldwide ability holes.

 

Responsibilities were likewise made to give social security to gig and stage laborers

what’s more, guarantee maintainable supporting.

 

The Indian Presidency chose three key priority areas for EWG 2023: addressing global skill gaps, the gig and platform economy and social protection, and sustainable social protection financing.

 

Note: The fourth and last gathering of the EWG and the Work and Business Priests

Meeting is booked for nineteenth – 21st July, 2023 at Indore, Madhya Pradesh.

Guwahati, Assam, was the location of the second EWG meeting.

3. Indian Army’s Sapta Shakti Command Conducted “Sudarshan Shakti 2023” Exercise Along Western Border

From May 22 to May 25, 2023, a four-day exercise known as “Sudarshan Shakti 2023” was carried out by the South Western (Sapta Shakti) Command of the Indian Army (IA) along the western borders of Rajasthan and Punjab.

 

The goal of Exercise “Sudarshan Shakti 2023” was to test the Indian Army’s network-centric operational readiness.

 

The joint conflict practice incorporated the investment of different units from the Indian Armed force and other protection powers to test their availability and capacity in managing unique

situations.

 

Key Points:

 

As part of high-tempo operations, the Indian Army’s elements of combat power, combat support, and logistic support were used together in all domains of enemy threat, including Grey Zone Warfare.

 

Because it aims to combat electronic warfare, the exercise is considered a one-of-a-kind event in terms of its scope and purpose.

 

During the military exercise, special forces and specialized technologies for drones, tethered drones, and loiter ammunition were used.

 

The Indian army’s Shatrujeet Brigade (50th Independent Para Brigade) and the Western Command were prominent participants in the exercise.

 

Key People:

 

The General Officer Commanding-in-Chief of the South Western Command is General B.S. Raju; During the war drills, Air Marshal P.M. Sinha, the Air Officer Commanding-In-Chief of Western Air Command, was present.

 

Note: This exercise met the five pillars of transformation that General Manoj Pandey, Chief of the Army Staff (COAS), announced in January 2023. 

 

The five pillars of transformation are as follows:

 

Force modernization, human resource development, and operational preparedness are all components of this. Joint Exercise Between the Indian Army and Air Force:

 

C-130J Super Hercules, C-17 Globemaster, and AN-32 aircraft were utilized to precisely place troops and specialized equipment in designated locations in the difficult terrain.

 

An elevated degree of functional readiness and cooperative energy was shown between Western Order, vital powers and the Indian Aviation based armed forces (IAF) to embrace coordinated activities in an impediment ridden landscape.

 

In a variety of operational scenarios, this partnership is an excellent illustration of jointness and interoperability between the two forces. Indian Naval force and IMU marked MoU for Specialized Joint effort

 

On second June 2023, Indian Naval force and the Indian Oceanic University(IMU), settled at Chennai(Tamil Nadu), marked a Reminder of Understanding(MoU) for Specialized

Joint effort. Teams from the Centre of Excellence (CoE) (Marine Engineering), Indian Navy Ship (INS) Shivaji, Lonavala (Maharashtra), and IMU can work together under the terms of the Memorandum of Understanding to collaborate on training, joint research and development, collaborative training, and field-level problem solving.

 

Vice Admiral Sandeep Naithani, Chief of Equipment, and Dr Malini V Shankar, IAS (Retired), Vice Chancellor of IMU, signed the Memorandum of Understanding in New Delhi, Delhi.

International Affairs

1. THE Impact Ranking 2023: Amrita Vishwa Vidyapeetham tops Indian Universities

On the Times Higher Education (THE) Impact Rankings 2023, Amrita Vishwa Vidyapeetham (Amrita University), located in Coimbatore, Tamil Nadu, emerged as the best university in India. 2023 Effect Rankings is the fifth release of THE Effect positioning.

 

Amrita University is ranked 52 globally out of 1,591 universities in 112 nations.

 

The overall ranking is led by Western Sydney University in Australia, followed by Queen’s University in Canada and the University of Manchester in the United Kingdom.

Under each SDG, Indian University ranks among the top 100:

 

For SDG 1: No Hunger: The 65th-ranked school is JSS Academy of Higher Education and Research in Mysuru, Karnataka.

 

For Goal 2: Defeat Hunger: LPU is number 41.

 

For Goal 3: Well-being and health: JSS Foundation is positioned sixteenth and Amrita

College is positioned 23rd and Sri Ramachandra Establishment of Advanced Education and Exploration (Chennai, TN) is positioned 83rd.

2. IRENA’s Low-cost finance for energy transition Report Praises India’s Renewable Energy Growth

The International Renewable Energy Agency (IRENA) published a report titled “Low-cost finance for energy transition” that praised India’s accomplishment in deploying renewable energy capacity and described it as “unprecedented.”

 

The report, which was written by IRENA in conjunction with India’s G20 presidency and in close collaboration with India’s Ministry of New and Renewable Energy (MNRE), provides valuable insights regarding the availability of low-cost financing for the energy transition and the implementation of crucial technologies. 

 

Key Findings:

 

In 2021, India ranked third on the Renewable Energy Attractive Index, and the country has the fourth-largest solar and wind power base in the world.

 

India’s national goals of adding 500 GW of non-fossil fuel capacity by 2030 and 175 GW of renewable energy capacity by 2022 are driving the country’s renewable energy sector growth.

 

IREDA:

 

The report acknowledges the 1987 establishment of the government-owned, non-banking finance company Indian Renewable Energy Development Agency (IREDA) by the Ministry of New and Renewable Energy.

 

According to the report, IREDA has contributed to the commissioning of approximately 20 

GW of renewable energy capacity in the country by financing renewable energy developers 

 

It has served India’s renewable energy sector and the government’s goals for the past 35 years. Green Bonds:

 

According to the report, the next logical step to demonstrate India’s commitment to developing a low-carbon economy, mobilize private sector capital for sustainable development, and lower the cost of capital for green projects by attracting new investors would be to issue sovereign green bonds.

 

During the 2021 Joined Countries Environmental Change Meeting (COP26), India set net-zero outflows focuses to accomplish by 2070.

 

India would need to raise USD 10 trillion between 2022 and 2070, according to the report, in order to achieve its net-zero goal by 2070.

 

Up to this point, generally green bond issuance in India has developed fundamentally to USD 18.3 billion in total, with 2021 being the year with a record issuance of USD 7 billion.

 

By the year 2030, India intends to have approximately fifty percent of its total installed capacity for electric power come from energy sources other than fossil fuels.

 

Under its chosen theme, Vasudhaiva Kutumbakam—”One Earth, One Family, One Future,” India’s presidency of the Group of Twenty (G20) includes climate finance, green development, and lifestyle for the environment (LiFE).

 

Note – Global Sustainable power Organization (IRENA) is an intergovernmental

association that upholds nations in their progress to a manageable energy future, and

fills in as the essential stage for worldwide co-activity, a focal point of greatness, and a

archive of strategy, innovation, asset and monetary information on sustainable power.

3. Security Council Extends UN Political Mission in Sudan for 6 Months

The United Nations Integrated Transition Assistance Mission in Sudan (UNITAMS), the United Nations’ political mission in Sudan, has been granted a six-month extension by the United Nations Security Council (UNSC) in response to the worsening of conflicts in Sudan.

 

In addition to requesting the Secretary-General of the United Nations to continue reporting on the implementation of the Mission’s mandate every 90 days and deciding to remain actively seized of the situation, the UNSC adopted resolution 2685 (2023).

 

In order to assist Sudan’s democratic transition following the demise of Omar al-Bashir’s government, UNITAMS was established in June 2020.

 

The Security Council’s commitment to Sudan’s sovereignty, unity, independence, and territorial integrity is reaffirmed in the resolution.

Banking and Finance

1. SEBI Issued Guidelines for Transactions in Corporate Bonds through RFQ platform by SBs

The Securities and Exchange Board of India (SEBI) issued guidelines on June 2, 2023, for stock brokers (SBs) to use for trading Corporate Bonds (CBs) through the Request for Quote (RFQ) platform. The goals of these guidelines are to improve transparency and disclosure regarding trading in the secondary market for corporate bonds and to increase liquidity on the platform.

 

Key Points:

 

SEBI has instructed SBs to place/seek quotes using one-to-one (OTO) or one-to-many (OTM) mode on the RFQ platform of stock exchanges for at least 10% of their total secondary market trades by value in CBs in that month.

Beginning on July 1, 2023, the instruction would be applicable to all proprietary trades.

 

From April 1, 2024 onward, the value would rise by 25% of their total secondary market trades.

 

Note that SEBI is issuing this circular to protect the interests of investors in securities, promote the development of securities markets, and regulate securities markets under Section 11(1) of the SEBI Act of 1992.

2. IRDAI Identified SBI Life as the Acquirer-Insurer of Business of SILIC

On June 2, 2023, The Protection Administrative and Advancement Authority of India (IRDAI)

recognized SBI Extra security Organization Restricted (SBI Life) as the acquirer-safety net provider of the business of Sahara India Life coverage Co. (SILIC).

 

In such manner, SBI Life will assume control over the approach liabilities of around two lakh arrangements of SILIC, supported by the policyholders’ resources, with prompt impact.

 

Note: This choice has been taken by IRDAI in exercise of its powers under sub-area (2)

of Area 52B of the Protection Act, 1938. 

 

The Official Release’s Key Points

 

For the execution of the Request in a timebound way, IRDAI has comprised a

board of trustees of Part (Statistician), Part (Life) and Part (F&I).

 

SBI Life has been told to draw in with SILIC policyholders, guaranteeing strategy adjusting

furthermore, laying out a committed cell to address their questions.

They are likewise expected to distribute fundamental data on their site.

 

IRDAI will intently screen what is going on, giving further headings depending on the situation to protect the interests of SILIC policyholders.

 

The SILIC Foundation:

 

For life insurance, SILIC received a Certificate of Registration (CoR) in 2004. In 2017, an Administrator was appointed as a result of financial and governance issues, preventing the insurer from taking on new business. SILIC failed to comply with regulatory requirements and safeguard policyholder interests, despite multiple attempts. The portfolio of the company is in a run-off state, with more claims and losses. As a result, IRDAI decided on June 2, 2023, to take the aforementioned precautions to protect SILIC policyholders.

3. RBL Bank Introduces ACE Fixed Deposit Scheme, offering up to 8.50% Interest Rate

In an effort to provide customers with improved options for saving, RBL bank Ltd. launched the “ACE Fixed Deposit Scheme,” a brand-new fixed deposit plan with interest rates of up to 8.50 percent.

 

Key Points:

 

Term: Customers will have more options for banks and prizes under the new plan, and the Fixed Deposit (FD) scheme is available for terms ranging from one year to twenty years.

 

The FD scheme has a maximum deposit of Rs 2 crore and a minimum deposit of Rs 50 lakh.

 

Eligibility: Both Indian residents and non-residents are eligible for the program.

 

In accordance with the plan, the bank is providing a fixed deposit with premature withdrawal with an interest rate that is 20 basis points higher than that of regular callable deposits. In addition, the interest rates for seniors and super seniors are increased by 50 bps and 75 bps, respectively.

 

Rate of Interest on a Fixed Deposit:

 

With effect from June 1, 2023, RBL Bank has also updated its fixed deposit interest rates, which range from 3.50 percent to 7.80 percent for regular citizens with deposits under Rs 2 crore. Learn more by clicking here.

 

Under FD the bank offers, Senior Residents (60 years to under 80 years) with an extra

loan cost of 0.50% per annum (p.a) and Very Senior Residents (80 years or more) are

qualified for an extra loan fee of 0.75% p.a.

 

Non-Resident Fixed Deposits (NRE/NRO) do not offer Senior Citizens/Super Senior Citizens rates.

4. Karbon Card launched Card++, India’s 1st Mobile Based Expense Management Card

The first mobile-based expense management card in India, dubbed “Card++,” was introduced by Karbon Card, a B2B (Business to Business) payment solution provider.

In view of the portable first methodology, it will address the difficulties looked by new companies and

 

Little and Moderate size Business (SMB) by giving solid and available cost arrangement,

subsequently, diminishing interruptions brought about by the utilization of various installment instruments by SMBs.

 

Benefits:

 

A specific Android app that can be used anywhere, anytime. ii. Spending cashback is unlimited.

 

Key Features: The app’s own transaction controls that can be customized

 

The card offers unlimited cash-back offers and is free to use.

 

Its highlights remember permitting installments for stages like Google, Amazon, Swiggy, Ola, and so on.

 

With its two-click sign-up process, user-friendly Android app for on-the-go access, and seamless top-up options, it provides a comprehensive and user-friendly expense management experience.

 

It expects to installed countless new clients toward the finish of 2023.

Economy and Business

1. Tata Group to Establish India’s 1st Lithium-ion Cell Manufacturing Gigafactory in Gujarat 

A subsidiary of the Tata Group, Tata Agaratas Energy Storage Solutions Private Limited, signed a memorandum of understanding (MoU) with the Gujarat government on May 2, 2023, to establish a gigafactory for manufacturing lithium-ion cells in the Sanand region of Gujarat.

 

India’s first lithium-ion cells will be produced at this gigafactory in Gujarat. The MoU was signed in accordance with the New Gujarat Electronics Policy 2022-2028, which was developed under the direction of Chief Minister (CM) Bhupendra Patel. The plant is expected to begin operations in less than three years.

 

This plant will have an expected introductory speculation of around Rs.13,000 crore and will

have a creation limit of 20 Gigawatt hours (GWh).

 

13,000 people will benefit from the plant’s direct and indirect employment opportunities.

Gujarat’s reliance on China and South Korea, which currently supply India with battery cells, will be lessened by the plant.