Economy and Banking Current Affairs August 2015 Part 2

e-Auction of FM Radio Channels Began

• The e-auction for the first batch of 135 channels in 69 cities as part of the private Frequency Modulation (FM) Radio Phase III expansion began on July 27, 2015 with four rounds of bidding taking place on the first day.
• 78 Channels spread over 54 cities provisionally had won the bidding in total.
• It fetched cumulative price of around Rs 395 crore against the aggregate reserve price of about Rs 357 crore. The auction began with Auction Activity Requirement set at 80%.
• Total 26 bidders were allowed to participate in the auction. The ongoing auction is a Simultaneous Multiple Round Ascending (SMRA) e-auction which is being conducted online from Auction Control Room No. 404 B

BRICS Bank Opened for Business in China

• The New Development Bank (NDB) created by the BRICS nations formally started its operations at its headquarters in Shanghai on July 21, 2015.
• Chinese Finance Minister Lou Jiwei, Shanghai Mayor Yang Xiong and the bank’s first President KV Karhath from India for the first five years attended the opening ceremony in Shanghai.
• BRICS economies i.e., Brazil, Russia, India, China and South Africa launched the multi billion dollar development bank at the 7th BRICS Summit held in the Russian city of Ufa on July 8, 2015 amid efforts to finance infrastructure projects, mainly in member countries.
• The NDB will have initial capital of $ 50 billion, which will b.e expanded to $ 100 billion within the next couple of years. Each BRICS member will contribute an equal share in establishing a start up capital regardless of GDP size.

Read Also – India & World Current Affairs September 2015 (Part 3).

WTO Reached Landmark $ 1.3 Trillion IT Trade Deal

• The World Trade Organisation (WTO) has struck a deal on July 25, 2015, where over 200 information technology products valued at S 1.3 trillion in annual trade would be freed from import tariffs.
• The majority of tariffs on the products will be lifted within 3 years, with reductions starting as soon as 2016. This agreement builds on an as initial accord reached by 54 WTO members on July 18,2015 which will be used as a basis for implementation work to begin.
• The products include new generation semi-conductors, GPS navigation, medical equipment, as well as machine tools for manufacturing printed circuits, telecommunication satellites and touch screens.
• Eliminating tariffs on trade of this magnitude will support lower prices, including in many other sectors that use IT products as inputs. It will create jobs and will help to boost GDP growth around the world.

IRDAI Set-up 3 Committees to Review Regulations in Insurance

• Insurance Regulatory and Development Authority of India (IRDAI) has constituted three committees on July 22, 2015 for review of regulations in life insurance, general insurance and reinsurance including registration of foreign offices of reinsurers.
• The committees must submit their report within one month to the Member-Actuary of IRDAI.
• The life insurance committee will look into regulations in areas like assets, liabilities and solvency margin and appointed actuary.
• The general insurance committee will look at regulations in areas including claim ,reserving, reinsurance and appointed actuary.
• Reinsurance committee will look into issues relating to registration of branches of foreign reinsurers among others.

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