ENVIRONMENT & ECOLOGY

India decided to eliminate potent greenhouse gas HFC-23 by 2030 India on 13 October 2016 announced its decision to eliminate the HCF-23 gas. The decision was made in line to its commitment to combat the threat emanating from climate-damaging HFCs (hydrofluorocarbons). The announcement was made by Minister of State Environment, Forest and Climate Change (MoEFCC), Anil Dave at Kigali, Rwanda, at a meeting of parties to the Montreal Protocol, where final negotiations are taking place to substantially reduce the use of HFCs (hydrofluorocarbons) by 2030.  HFC–23 gas, a potent greenhouse gas, with Global Warming Potential of 14800, is produced during the manufacture of a common refrigerant gas, HCFC-22. If vented out in environment, is a threat to the environment. HCFC stands for hydrochloroflurocarbon. Key Highlights • Companies have to internalise the cost of this environmental externality and create sufficient storage facility to take care of down time and run the incinerators to ensure and not release of HFC–23 in the atmosphere. • The move will potentially check emissions of HFC-23 equivalent to 100 million tonnes of CO2 over the next 15 years, Delhi-based think tank Centre for Science and Environment. Montreal Protocol The Montreal Protocol on Substances that Deplete the Ozone Layer was designed to reduce the production and consumption of ozone depleting substances in order to reduce their abundance in the atmosphere, and thereby protect the earth’s fragile ozone Layer. The original Montreal Protocol was agreed on 16 September 1987 and entered into force on 1 January 1989. The Montreal Protocol includes a unique adjustment provision that enables the Parties to the Protocol to respond quickly to new scientific information and agree to accelerate the reductions required on chemicals already covered by the Protocol. These adjustments are then automatically applicable to all countries that ratified the Protocol. It has been ratified by 197 parties.

SCIENCE &TECH

World's first baby born from new procedure using DNA of three people The world’s first baby was born from a new procedure that combines the DNA of three people. The baby was born in Mexico. The baby was born on 6 April 2016 after his Jordanian parents travelled to Mexico where they were cared for by US fertility specialists. The baby was born using the new and controversial technology, called mitochondrial donation, which incorporates DNA from three persons. The five-month-old boy has the usual DNA from his parents, and a small amount of genetic code from a donor. How the treatment was done? • The baby’s mother carried genes for the fatal Leigh Syndrome, which harms the developing nervous system. • The faults affect the DNA in mitochondria, the tiny battery-like structures that provide cells with energy, and are passed down from mother to child. • A team of doctors, led by John Zhang, decided to attempt the controversial procedure of mitochondrial transfer in the hope that it would give the couple a healthy child. • The doctors took the nucleus from one of the woman’s eggs and inserted it into a healthy donor’s egg that had had its own nucleus removed. Then, the egg was fertilised with the husband’s sperm. • The team created five embryos but only one developed normally. This was implanted into the mother and the baby was born nine months later. What is Mitochondrial Donation? • Mitochondrial donation is a special form of in vitro fertilization in which the future baby's mitochondrial DNA comes from a third party. • The two most common techniques in mitochondrial donation are pronuclear transfer and maternal spindle transfer. • Due to the uncharted nature of producing a child with 3 sources of DNA, this subject is currently quite contentious in the field of bioethics, as is the case with many other gene therapies. • The treatment was legalised in the UK in 2015 but so far no other country has introduced laws to permit the technique. • In February 2016, a report was issued by the U.S. Food and Drug administration declaring that further research into mitochondrial donation is ethically permissible

SCIENCE &TECH

ISRO’s communication satellite GSAT-18 successfully launched from French Guiana India on 6 October 2016 successfully launched the communication satellite GSAT-18. The satellite was launched by a heavy duty rocket of Arianespace from the spaceport of Kourou in French Guiana. The European launcher Ariane-5 VA-231 injected GSAT-18 into a Geosynchronous Transfer Orbit (GTO) shortly after orbiting co-passenger Sky Muster II satellite for Australian operator, National Broadband Network. After its injection into GTO, ISRO's Master Control Facility (MCF) at Hassan took control of GSAT-18 and performed the initial orbit raising maneuvers using the Liquid Apogee Motor (LAM) of the satellite, placing it in circular Geostationary Orbit. GSAT-18  • GSAT-18 is designed to provide continuity of services on operational satellites in C-band, Extended C-band and Ku-bands. • Weighing 3404 kilograms at lift-off and having a mission life of about 15 years, GSAT-18 will strengthen ISRO's current fleet of 14 operational telecommunication satellites. • It carries 48 communication transponders to provide services in Normal C-band, Upper Extended C-band and Ku-bands of the frequency spectrum. • GSAT-18 carries Ku-band beacon as well to help in accurately pointing ground antennas towards the satellite. • It will enable the continuity of the vital communication services in the country by replacing the currently ageing satellites. GSAT-18 is the 20th satellite from ISRO to be launched by the European space agency and the mission is the 280th for Arianespace launcher family. ISRO, which has been dependent on Ariane-5 rocket for carrying its heavier satellites, is developing GSLV Mk III for this purpose. GSAT-18's co-passenger Sky Muster II, built by Space Systems Loral in California, is aimed at bridging the digital divide, especially in the rural and isolated regions of Australia. Kourou is a French territory located in northeastern coast of South America. The launch, which was originally scheduled for 5 October 2016, was deferred by 24 hours due to unfavourable weather conditions at Kourou.

SCIENCE &TECH

Apes can think like humans: Study A new study suggests that apes have a human-like ability to guess what others are thinking, even in cases when someone holds a mistaken belief. The findings were published on 6 October 2016 in the journal Science. The study • The study was led by Krupenye and Fumihiro Kano, a comparative psychologist at Kyoto University. • The apes were shown the videos of a capering actor dressed in a King Kong suit. • The video featured an actor dressed as King Kong, who hits a man holding a long pole before darting under one of two haystacks while the human looks on. In some scenarios, the King Kong character switches haystack while the human disappears out of view behind a door. The man then reappears and smacks the haystack he thinks his assailant is hidden under. • By using eye-tracking technology, the scientists showed that 17 out of 22 apes tested switched their gaze to show they had correctly anticipated when the man would target the wrong haystack. What are the findings? • The findings, in chimpanzees, bonobos and orangutans, are the first to clearly demonstrate that apes can predict another’s beliefs, even when they know that presumption is false. • On a psychology experiment, the apes were able to correctly anticipate that someone would look for a hidden item in a specific location, even if the apes knew that the item was no longer there. • The ability to predict that someone holds a mistaken belief, which psychologists refer to as a theory of mind, is seen as a landmark in cognitive development that children normally acquire by the age of five.

SCIENCE &TECH

Hubble Space Telescope detects Great Balls of Fire NASA’s Hubble Space Telescope in the first week of October 2016 detected Great Balls of Fire. These superhot blobs of gas, each twice as big as the planet Mars, were being ejected near a dying star. These plasma balls are moving so fast through space that it would take only 30 minutes for them to travel from Earth to the moon. The observations suggest that these balls of fire have been appearing every 8.5 years for at least the last four centuries. The gas balls were observed near a red giant called V Hydrae that is about 1200 light-years away from Earth. Significance If scientists can discover where these balls come from, it could also explain other weird shapes seen in the cloud of gas around dying stars, some of which have been difficult for scientists to explain. About Hubble Space Telescope • The Hubble Space Telescope is a space telescope that was launched into low Earth orbit in 1990. It remains in operation. It could last until 2030–2040. • It is one of the largest and most versatile vital research tool and a public relations boon for astronomy. • It is named after the astronomer Edwin Hubble, and is one of NASA's Great Observatories, along with the Compton Gamma Ray Observatory, the Chandra X-ray Observatory and the Spitzer Space Telescope. • With a 2.4-meter mirror, its four main instruments observe in the near ultraviolet, visible and near infrared spectra. • It was built by the United States space agency NASA, with contributions from the European Space Agency. • The Space Telescope Science Institute (STScI) selects Hubble's targets and processes the resulting data, while the Goddard Space Flight Center controls the spacecraft. • It is the only telescope designed to be serviced in space by astronauts. • Its scientific successor, the James Webb Space Telescope (JWST), is scheduled for launch in 2018.

SCIENCE &TECH

NASA develops electroactive bandages for wound healing The National Aeronautics and Space Administration (NASA) developed a high-tech electroactive bandage. The bandage creates an electric charge to help promote the healing process of wounds. Electroactive material is so sensitive that a push or even a blow on it can create an electric charge. Key features of the electroactive bandages • The fibres of the guaze are made of electroactive material Polyvinylidene Fluoride (PVDF). • The bandage is stimulated by the heat of the body and the pressure of cell growth. Therefore, no external power source is required in order for the bandage to promote wound healing. • The device uses electrical activity to facilitate the wound healing process while protecting the wound. • The bandage also minimises infection and related complications such as illness or amputation. • The bandage could be used by military personnel wounded in the field, patients who have undergone surgery or who have suffered a serious wound and astronauts in space.

SCIENCE &TECH

Researchers at IISER used human hair to produce cathodes for solar cells Researchers at the Indian Institute of Science Education and Research (IISER) in Kolkata have found a new way to produce cathodes for solar cell. The IISER researchers have used human hair to produce cost-effective, metal-free cathodes for use in solar cells. The results have been published in the journal Carbon. This is the first time where a bio-waste-derived electrode has been used as cathode in a quantum dot sensitised solar cell device. Key highlights • The graphitic porous carbon cathode shows an impressive performance to help converting visible sunlight to electricity, which is much higher than commercially available activated carbon cathodes. • It offers higher efficiency to convert visible sunlight to electricity. • The cathode was found to generate high open-circuit voltage, which is at par with conventional platinum and activated carbon cathodes. • Producing graphitic porous carbon cathode using human hair is also simple, quick and inexpensive. • Unlike in the case of other synthetic porous carbons, no physical or chemical activation process or templates were required to produce the pores of 2-50 nanometres diameter. • The porosity, along with high surface area to volume ratio, plays an important role in adsorption-desorption of electrolyte. • The cleaned and dry human hair was first treated with sulphuric acid at 165 degrees C for 25 minutes to achieve precarbonisation. • It was then heated to different temperatures in the presence of an inert gas for six hours to carbonise and bring better electrical conductivity for efficient charge transfer.

ECONOMY

CCEA approves implementation of Project SAKSHAM The Cabinet Committee on Economic Affairs (CCEA) on 28 September 2016 approved ‘Project SAKSHAM’. It is a New Indirect Tax Network (Systems Integration) of the Central Board of Excise and Customs (CBEC). It will help in integrating system of Central Board of Excise and Customs with the GST network before the roll out in April 2017. The total project cost involved is 2256 crore rupees which will be incurred over a period of seven years. The project SAKSHAM will help in • Implementation of Goods and Services Tax (GST) • Extension of the Indian Customs Single Window Interface for Facilitating Trade (SWIFT) • Other taxpayer-friendly initiatives under Digital India and Ease of Doing Business of Central Board of Excise and Customs The implementation strategy for the project will be to ensure readiness of CBEC's IT systems by 1 April 2017, when GST is to be introduced. The upgrade of the IT systems will be carried out while keeping the existing Tax-payer services running. As predicted, all taxpayers/importers/exporters/dealers under various indirect tax laws administered by CBEC, presently about 36 lakhs, are likely to go up to over 65 lakhs after introduction of GST. CBEC's IT systems need to integrate with the Goods & Services Tax Network (GSTN) for processing of registration, payment and returns data sent by GSTN systems to CBEC, as well as act as a front-end for other modules like Audit, Appeal, Investigation. There is no overlap in the GST-related systems of CBEC and GSTN. This IT infrastructure is also urgently required for continuation of CBEC's e-Services in Customs, Central Excise & Service Tax, implementation of tax¬payer services such as scanned document upload facility, extension of Indian Customs Single Window Interface for Facilitating Trade (SWIFT) initiative and integration with Government initiatives such as E-Nivesh, E-Taal, e-Sign. Background Introduction of GST will result in a several-fold increase in the number of taxpayers and resultant document load on the system. CBEC's current IT system was set up in 2008. It cannot cater to the increased load under GST without an immediate upgrade of its IT Infrastructure. Further, CBEC has implemented the Indian Customs Single Window Interface for Facilitating Trade (SWIFT) and is integrating other partner agencies involved in Customs clearance in order to make the process simple and fast. The Customs EDI system which is currently operational at about 140 locations in India has to be extended to many more locations with improved response time and better service delivery. Taxpayers have to be given a facility for Upload of Digitally Signed Scanned Documents in order to reduce the physical interface with tax authorities and to increase the speed of clearance. CBEC also aims to introduce mobile services for taxpayers and departmental users to increase the outreach of its services.

ECONOMY

Union Government decides to raise EPFO Investment in ETF from 5 to 10 per cent The Union Government on 30 September 2016 decided to raise the Employees Provident Fund (EPF) investment in Exchange Traded Fund (ETF) from existing 5 per cent to 10 per cent. The decision has been taken considering the good returns in ETF investment. An official release said, in the last one year, the Employees Provident Fund Organisation (EPFO) has invested 6577 crore rupees. The investment has yielded a good return of 13.24 per cent. The past performance of the last six months from April, 2016 to August, 2016 also showed gradual appreciation in the returns from 0.37 per cent in March 2016 to 13.24 per cent in August 2016. Five per cent EPF has been invested in NIFTY 50 and SENSEX. The pattern of investment prescribed by the Ministry of Finance has given guidelines for investment in equity from 5 per cent to 15 per cent.

ECONOMY

Union Government notifies constitution of Monetary Policy Committee The Union Government on 29 September 2016 notified the constitution of the Monetary Policy Committee (MPC). The Reserve Bank of India Act, 1934 (RBI Act) has been amended by the Finance Act, 2016,  to provide for a statutory and institutionalised framework for a Monetary Policy Committee, for maintaining price stability. As per the provisions of the RBI Act, out of the six Members of Monetary Policy Committee, three Members will be from the RBI. The other three Members of MPC will be appointed by the Central Government. In exercise of the powers conferred by section 45ZB of the Reserve Bank of India Act, 1934, the Union Government has accordingly constituted the Monetary Policy Committee of RBI, with the following composition: • The Governor of the Bank: Chairperson, ex officio • Deputy Governor of the Bank, in charge of Monetary Policy: Member, ex officio • One officer of the Bank to be nominated by the Central Board: Member, ex officio • Chetan Ghate, Professor, Indian Statistical Institute (ISI): Member • Pami Dua, Director, Delhi School of Economics (DSE): Member • Ravindra H. Dholakia, Professor, Indian Institute of Management (IIM) Ahmedabad: Member The Members of the Monetary Policy Committee appointed by the Union Government will hold office for a period of four years, with immediate effect or until further orders, whichever is earlier. About Monetary Policy Committee • The Monetary Policy Committee will be entrusted with the task of fixing the benchmark policy rate (repo rate) required to contain inflation within the specified target level. • A Committee-based approach for determining the Monetary Policy will add lot of value and transparency to monetary policy decisions. • The meetings of the Monetary Policy Committee will be held at least 4 times a year and it will publish its decisions after each such meeting.

ECONOMY

RBI releases fourth Bi-monthly Monetary Policy Statement, 2016-17 The Reserve Bank of India (RBI) on 4 October 2016 released the fourth Bi-Monthly Monetary Policy Statement 2016-17. The key announcement under the policy was the interest cut of 25 basis points. This move may lead to banks in lowering EMIs for housing, car loan and corporate borrowers. This policy decision was not only RBI Governor Urjit Patel’s maiden policy announcement but was also the first to be announced by the newly constituted Monetary Policy Committee (MPC). All the six members of MPC unanimously decided to cut repo rate by 0.25 per cent; bring in to a nearly six-year low of 6.25 per cent. This was also the first interest rate cut in last six months. According to the monetary policy statement, the decision to cut interest rates is consistent with the aim of achieving a midterm inflation target of 4 percent within a band of plus or minus 2 percent. Based on the assessment of the current and evolving macroeconomic situation, the Monetary Policy Committee (MPC) decided to: • Repo Rate: The policy repo rate under the liquidity adjustment facility (LAF) was reduced by 25 basis points from 6.5 per cent to 6.25 per cent with immediate effect. • Reverse Repo Rate: The reverse repo rate under the LAF stands adjusted to 5.75 per cent. • Marginal standing facility (MSF) Rate: The MSF rate was fixed at 6.75 per cent. • Bank Rate: The Bank Rate also stands at 6.75 per cent. The decision of the MPC is consistent with an accommodative stance of monetary policy in consonance with the objective of achieving consumer price index (CPI) inflation at 5 per cent by Q4 of 2016-17 and the medium-term target of 4 per cent within a band of +/- 2 per cent, while supporting growth. The main considerations underlying the decision are set out in the statement below. Assessment of the Economy • Global growth has been slowing more than anticipated through 2016 so far, with weak investment and trade damping aggregate demand. • Risks in the form of BREXIT, banking stress in Europe, rebalancing of debt-fuelled growth in China, rising protectionism and diminishing confidence in monetary policy have slanted the outlook to the downside. • World trade volume has contracted sharper than expected in the first half of 2016, and the outlook has worsened with the recent falling off of imports by Advanced Economies (AEs) from Emerging Market Economies (EMEs). Inflation remains subdued in AEs and has started to edge down in EMEs. • International financial markets were overwhelmed by the BREXIT vote in Q2, with equity markets losing valuations worldwide, currencies plunging and turning volatile, and investors rushing for safe havens. Markets, however, recovered quickly and reclaimed lost ground in Q3, with a return of risk appetite propelling capital flows back into EMEs. • Crude prices rose to a recent peak in Q2 of 2016, mostly on supply disruption in various parts of the world, and again in late September as the OPEC announced intentions of cutting back on supply; but, the upturn has been curbed by higher inventories. Assessment on the domestic front • Agriculture: The outlook for agricultural activity has brightened as the South West monsoon ended the season with a cumulative deficit of only 3 per cent below the long period average, with 85 per cent of the country’s geographical area having received normal to excess precipitation. • Kharif: Kharif sowing has surpassed last year’s acreage, barring cotton, sugarcane and jute and mesta. Accordingly, the first advance 2 estimates of kharif food grains production for 2016-17 by the Ministry of Agriculture have been placed at a record level, and higher than the target set for the year. • Industrial sector: The industrial sector, by contrast, suffered a manufacturing-driven contraction in early fiscal year Q2, after a sequential deceleration in gross value added in Q1. Even after trimming the statistical effects of the lumpy and order-driven contraction of insulated rubber cables, industrial production as measured by the index of industrial production (IIP) turned out to be slower than a year ago. • Steel: In August, steel production rose to a 37-month high and cement production maintained momentum - auguring well for construction activity - even though the output of core industries as a whole was weighed down by a decline in the production of coal, crude oil and natural gas and deceleration in refinery products and electricity generation. Nonetheless, business expectations polled in the Reserve Bank’s industrial outlook survey and by other agencies remain expansionary in Q2 and Q3. • Roads, Railways And Inland Waterways: The strong public investment in roads, railways and inland waterways, the recent efforts to unclog cash flows in large projects under arbitration, and the boost to spending from the 7th Pay Commission’s award, should improve the industrial outlook. • Services Sector: The acceleration in the pace of activity in Q1 appears to have been sustained. An increasing number of high frequency indicators are moving into positive territory, construction is boosted by policy initiatives, and public administration, defence and other services will be supported by the pay commission award. • Retail inflation: Measured by the headline CPI had been elevated by a sharp pick-up in the momentum of food inflation overwhelming favourable base effects during April-July. In August, however, the momentum of food inflation turned negative and surprised expectations; consequently, base effects in that month came into full play and pulled down headline inflation to an intra-year low. Fuel inflation has moderated steadily through the year so far. Inflation excluding food and fuel (including petrol and diesel embedded in transportation) has been sticky around 5 per cent, mainly in respect to education, medical and personal care services. • Liquidity conditions: It remained comfortable in Q3, with the Reserve Bank absorbing liquidity on a net basis through variable rate reverse repo auctions of varying tenors. Liquidity was injected through open market purchases of 200 billion rupees in line with the system’s requirements. As a result, the Weighted Average Call Money Rate (WACR) remained tightly aligned with the policy repo rate and, in fact, traded with a soft bias. Interest rates on commercial paper (CPs) and certificates of deposit (CD) also eased. • External Sector: Merchandise exports contracted in the first two months of Q2. Subdued domestic demand was, however, reflected in a faster contraction in imports. Moreover, the still soft crude prices pared off a fifth of the oil import bill and gold import volume slumped to a fifth of its volume a year ago. As a result of the same, the merchandise trade deficit narrowed by 10 billion US dollars in April-August on a year-on-year basis. • Foreign Direct Investment: The pace of foreign direct investment slowed compared to a year ago, portfolio flows were stronger after the BREXIT vote, galvanised by a search for returns in an expanding universe of negative yields. The level of foreign exchange reserves rose to 372 billion US dollars by 30 September 2016 – an all-time high. Outlook • The food inflation outlook will improved due to strong improvement in sowing, along with supply management measures. • Sharp drop in inflation reflects a downward shift in the momentum of food inflation, which holds the key to future inflation outcomes, rather than merely the statistical effects of a favourable base effect. • Government’s measures to curb the food inflation would help in moderating the momentum of food inflation in months ahead.

ECONOMY

Union Finance Ministry sets up Public Debt Management Cell Union Finance Ministry on 4 October constituted a Public Debt Management Cell (PDMC). The cell was created to streamline government borrowings and better cash management with the overall objective of deepening bond markets. The Joint Secretary (Budget), Department of Economic Affairs, Ministry of Finance would be the overall in-charge of the ODMC. As an interim arrangement, the PDMC will be housed at the RBI's Delhi office. In about two years, the PDMC will be upgraded to a statutory Public Debt Management Agency (PDMA). Highlights of PDMC • The interim arrangement will allow separation of debt management functions from RBI to PDMA in a gradual and seamless manner, without causing market disruptions. • It will have only advisory functions to avoid any conflict with the statutory functions of RBI. • It has been tasked to plan government borrowings, including market borrowings and other borrowings, like Sovereign Gold Bond issuance. • It will also advise government on matters related to investment, capital market operations, administration of interest rates on small savings among others. • The middle office of the Budget Division will be subsumed into PDMC with immediate effect. The transition process from PDMC to PDMA would be implemented by a Joint Implementation Committee (JIC), which will be chaired by Joint Secretary (Budget). Other members of the JIC will be from Government and RBI. As per the circular issued by the ministry, the JIC would operate under the supervision of the Monitoring Group on Cash and Debt Management (MGCDM) with Secretary, Economic Affairs and DG, RBI as co-chairpersons. The PDMC would be staffed by 15 debt managers from Budget Division, RBI, current Middle Office and other government units. Background To deepen Indian Bond market, the Finance Ministry Arun Jaitley proposed setting of a PDMA in his Budget Speech 2016-17. He said that he intend to set up a PDMA which will bring both India's external borrowings and domestic debt under one roof.

ECONOMY

CCEA approves acquisition of 11% stake in JSC Vankorneft by ONGC Videsh The Cabinet Committee on Economic Affairs (CCEA) on 5 October 2016 gave its approval to an acquisition by ONGC Videsh Ltd (OVL) for 11% stake in JSC Vankorneft from Rosneft Oil Company (Rosneft), Russia’s national oil company. The OVL will pay 930 million US dollar for acquiring 11 per cent in Vankorneft. The acquisition is in line with ONGC’s stated objective of adding high quality international assets to India's exploration and production portfolio. Earlier in May 2016, OVL completed the formalities for acquisition of 15% stake in Vankorneft at a cost of 1.284 billion US dollar, which gave OVL 4.11 MMTOE.  Benefits • The acquisition of stake in Vankorneft will provide 3.2 Million Tonnes of Oil Equivalent (MMTOE) to OVL by 2017. • It will also provide an opportunity to the Indian public sector oil and gas companies to acquire new technologies from Rosneft. About ONGC Videsh Ltd • ONGC Videsh Limited is the international arm of ONGC. • It was rechristened on 15 June 1989. • ONGC holds 100% stake in ONGC Videsh Limited. • It is a Miniratna Schedule A Central Public Sector Enterprise (CPSE) of the Government of India under the administrative control of the Ministry of Petroleum & Natural Gas. • In terms of reserves and production, ONGC Videsh is the second largest petroleum Company of India, next only to its parent ONGC. About Rosneft Oil Company • Rosneft is an integrated oil company majority owned by the Government of Russia. • It is headquartered in Moscow's Balchug district near the Kremlin, across the Moskva River. • It became Russia's leading extraction and refinement company after purchasing assets of former oil giant Yukos at state-run auctions.

ECONOMY

RBI releases report of IWG on Rationalisation of Branch Authorisation Policy The Reserve Bank of India (RBI) on 6 October 2016 released the Report of the Internal Working Group (IWG) on Rationalisation of Branch Authorisation Policy. The Group is chaired by Lily Vadera, Chief General Manager, Department of Banking Regulation.  The thrust of the recommendations is to facilitate financial inclusion by ensuring availability of banking services in all centers through low cost delivery channels and mapping the footprints of various banking channels. Recommendations of the IWG • In the first phase, the recommendations focus on broadening of the current framework to include all banking outlets which are fixed point locations and bring them on par with branches. • A banking outlet is defined as a fixed point service delivery unit manned by bank’s staff or its Business Correspondent where services of acceptance of deposits, encashment of cheques/cash withdrawal or lending of money are provided for minimum 4 hours per day for at least five days a week. • Banks need to open banking outlets to meet the 25 percent norms of opening banking outlets in unbanked rural centres that does not have a CBS-enabled banking outlet of a Scheduled Commercial Bank. • A part-time banking outlet opened in any Centre will be added to the denominator as well as numerator on pro rata basis for computing the compliance with the norm of opening 25% banking outlets. • A banking outlet opened in North-Eastern States, Sikkim and in Left-Wing Extremism Affected Districts will be treated as a banking outlet/part-time banking outlet in an unbanked rural centre. • Grandfathering of MFI/NBFC structures of Small Finance Banks to be provided to facilitate an orderly transformation and to minimize the risk of transition. As regards their existing NBFC/MFI branches, banks will be given a time period of 3 years to close or convert these into banking outlets. • The Boards of the banks should set internal financial inclusion targets and compile the data to monitor the transactions to ensure that target customers for financial inclusion are getting the banking facilities in unbanked rural centres. • In the second phase, a new data system will be devised which is capable of capturing the locations and transactions carried out by all banking outlets. Background The opening of new branches and shifting of existing branches of banks is governed by the provisions of Section 23 of the Banking Regulation Act, 1949. In the light of the rapid developments in technology and associated digital and telecom revolution, banks are looking at alternative approaches to enlarge their footprints and reach out to the unbanked and underserved centres in remote areas in a cost effective manner. With a view to facilitate financial inclusion and provide operational flexibility, it was considered necessary to redefine branches and permissible methods of outreach keeping in mind the various attributes of the banks and the types of services that are sought to be provided. An announcement to this effect was made in the first Bi-monthly Monetary Policy Statement 2016-17 in April 2016 and accordingly an Internal Working group was constituted for the purpose.

ECONOMY

Fadnavis inaugurates India’s first International Arbitration Centre in Mumbai Maharashtra Chief Minister Devendra Fadnavis on 8 October 2016 inaugurated India’s first centre for international arbitration in Mumbai. Inaugurating the Mumbai Centre for International Arbitration (MCIA), Fadnavis said that India will leave its benchmark worldwide in business dispute redressal with the setting up of international arbitration centre in Mumbai.  The Mumbai Centre for International Arbitration (MCIA) is located in Express towers, Nariman Point. It is being headed by CEO Madhukeshwar Desai. Mumbai Centre for International Arbitration (MCIA) • The MCIA will be governed by a 17-member governing council. • The Arbitration Centre is in sync with the Prime Minister's Make in India campaign. • The Centre would provide a time bound and cost-effective facility and reinforce investor confidence. • MCIA will be helpful in development of the proposed International Financial Services Centre (IFSC) in Mumbai. The state government has plans to develop IFSC in BKC. • It will feature arbitration rules that reflect international best practices. • The MCIA Council for Arbitration will have some of the leading arbitration practitioners from India and around the world. • It will be a catalyst for business and investment into India. • It is the result of a joint effort between the domestic and international arbitration community, the business community and the Government of Maharashtra. In the absence of an international arbitration centre in the country, the majority of global disputes earlier landed at the Singapore International Arbitration Centre and London Court of International Arbitration. A study conducted by the Singapore International Arbitration Centre suggests that it handled about 30 percent of cases that involved Indian businesses.

ECONOMY

Union Cabinet approves MoU between EXIM bank and NDB Union Cabinet on 13 October 2016 approved MoU between Export-Import Bank of India (Exim Bank) on General Cooperation with the BRICS promoted New Development Bank (NDB), along with other Development Financial Institutions of BRICS nations. This will be achieved through the BRICS Interbank Cooperation Mechanism. This approval will help in enhancing trade and economic relations among the BRICS countries and benefit the participating institutions from the BRICS nation. There is no financial implication involved in signing of the MoU.  Key Highlights • The MoU is a non-binding umbrella agreement. • It aims at establishing a cooperation framework in accordance with the national laws and regulations, besides skills transfer and knowledge sharing amongst the signatories. Establishment of the NDB reflects the close relations among the BRICS countries and provides a powerful instrument for increasing their economic cooperation and help India play an enhanced international role. Why the MoU is necessary? The signing of MoU is necessary in the context of cooperation extended by the Members in various forms for promoting and facilitating trade of goods and services as well as investments in mutual projects among the BRICS countries. It will help in sustainable development and inclusive economic growth of the BRICS nations. BRICS Interbank Cooperation Mechanism Five banks from the BRICS nations had established the BRICS Interbank Co-operation Mechanism to enhance trade and economic relations among the BRICS countries. The BRICS Interbank Co-operation Mechanism now proposes to sign a Memorandum of Understanding (MOU) on General Co-operation with the New Development Bank.

India decided to eliminate potent greenhouse gas HFC-23 by 2030

India decided to eliminate potent greenhouse gas HFC-23 by 2030 India on 13 October 2016 announced its decision to eliminate the HCF-23 gas. The decision was made in line to its commitment to combat the threat emanating from climate-damaging HFCs (hydrofluorocarbons). The announcement was made by Minister of State Environment, Forest and Climate Change (MoEFCC), Anil Dave at Kigali, Rwanda, at a meeting of parties to the Montreal Protocol, where final negotiations are taking place to substantially reduce the use of HFCs (hydrofluorocarbons) by 2030.  HFC–23 gas, a potent greenhouse gas, with Global Warming Potential of 14800, is produced during the manufacture of a common refrigerant gas, HCFC-22. If vented out in environment, is a threat to the environment. HCFC stands for hydrochloroflurocarbon. Key Highlights • Companies have to internalise the cost of this environmental externality and create sufficient storage facility to take care of down time and run the incinerators to ensure and not release of HFC–23 in the atmosphere. • The move will potentially check emissions of HFC-23 equivalent to 100 million tonnes of CO2 over the next 15 years, Delhi-based think tank Centre for Science and Environment. Montreal Protocol The Montreal Protocol on Substances that Deplete the Ozone Layer was designed to reduce the production and consumption of ozone depleting substances in order to reduce their abundance in the atmosphere, and thereby protect the earth’s fragile ozone Layer. The original Montreal Protocol was agreed on 16 September 1987 and entered into force on 1 January 1989. The Montreal Protocol includes a unique adjustment provision that enables the Parties to the Protocol to respond quickly to new scientific information and agree to accelerate the reductions required on chemicals already covered by the Protocol. These adjustments are then automatically applicable to all countries that ratified the Protocol. It has been ratified by 197 parti