RBI permits banks to provide loans to exporters for up to 10 years
Banks have been allowed by the RBI to give loans with tenures of up to 10 years to exporters to help them ensure capital flows to fulfil long-term contracts. As per current rules, banks are allowed to provide loans for up to 1 year only.
RBI has permitted banks to allow exporters having a minimum of 3 years’ satisfactory track record to get long-term export advance up to a maximum tenor of 10 years to be utilized for execution of long-term supply contracts for export of goods.
This facility is available with certain caveats, including:-
- An interest rate limit of 200 basis points above the London interbank offered rate (Libor), a global benchmark.
- Exporters getting loans of $ 100 million or above are required to report the transaction immediately to the RBI.
- There should be irrevocable supply orders in place.
- The contract with the overseas party or buyer should be examined and must clearly specify the nature, amount and delivery timelines of products over the years and the penalty in case of non-performance or contract cancellation.
- Export advances which are classified as non-performing assets as per RBI norms can’t be used to liquidate rupee loans.
- Exporters should have the capacity, systems and processes in place to ensure that orders over the duration of the tenure can be executed.
Banks have been allowed by the RBI to give loans with tenures of up to 10 years to exporters to help them ensure capital flows to fulfil long-term contracts. As per current rules, banks are allowed to provide loans for up to 1 year only.
RBI has permitted banks to allow exporters having a minimum of 3 years’ satisfactory track record to get long-term export advance up to a maximum tenor of 10 years to be utilized for execution of long-term supply contracts for export of goods.
This facility is available with certain caveats, including:-
- An interest rate limit of 200 basis points above the London interbank offered rate (Libor), a global benchmark.
- Exporters getting loans of $ 100 million or above are required to report the transaction immediately to the RBI.
- There should be irrevocable supply orders in place.
- The contract with the overseas party or buyer should be examined and must clearly specify the nature, amount and delivery timelines of products over the years and the penalty in case of non-performance or contract cancellation.
- Export advances which are classified as non-performing assets as per RBI norms can’t be used to liquidate rupee loans.
- Exporters should have the capacity, systems and processes in place to ensure that orders over the duration of the tenure can be executed.
Jitan Ram Manjhi sworn-in as Bihar Chief Minister
Jitan Ram Manjhi is the new Chief Minister of Bihar. He was administered oath of office and secrecy by Governor D.Y. Patil at a ceremony at the Raj Bhavan in Patna. The 15 members of the previous Nitish Kumar government have retained their place in the new Jitan Ram Manjhi Ministry, while two independent MLA have also been added.
It may be recalled that chief minister Nitish Kumar had resigned from the post taking the responsibility of his party’s (JDU) dismal performance in the recently concluded Lok Sabha polls.
Jitan Ram Manjhi:
Manjhi is from Mahkar village in Gaya district. He is a legislator from the Makhdoompur assembly constituency in Jehanabad district. He is the third Dalit CM of Bihar after Bhola Paswan Shastri and Ram Sundar Das. Prior to his appointment as CM, Manjhi was SC/ST welfare minister in the Nitish Kumar cabinet.
Jitan Ram Manjhi is the new Chief Minister of Bihar. He was administered oath of office and secrecy by Governor D.Y. Patil at a ceremony at the Raj Bhavan in Patna. The 15 members of the previous Nitish Kumar government have retained their place in the new Jitan Ram Manjhi Ministry, while two independent MLA have also been added.
It may be recalled that chief minister Nitish Kumar had resigned from the post taking the responsibility of his party’s (JDU) dismal performance in the recently concluded Lok Sabha polls.
Jitan Ram Manjhi:
Manjhi is from Mahkar village in Gaya district. He is a legislator from the Makhdoompur assembly constituency in Jehanabad district. He is the third Dalit CM of Bihar after Bhola Paswan Shastri and Ram Sundar Das. Prior to his appointment as CM, Manjhi was SC/ST welfare minister in the Nitish Kumar cabinet.
Modi is not the first instance when CM becomes PM
Prime Minister-to-be Narendra Modi is not the first Chief Minister to ascend to the seat of the head of Government of India. The distinction goes to former Karnataka CM H.D. Deve Gowda, who, moved to the post of Prime Minister in 1996.
Mr. Gowda resigned as Chief Minister and gave up his membership of the Karnataka Legislative Assembly after he was named PM. The Constitution of India permits a person, who enjoys the support of the majority of Lok Sabha MPs, to be sworn in as PM without being a member of either the Lok Sabha or the Rajya Sabha.
However, the person has to get elected to either House of Parliament within a period of 6 months. Mr. Gowda chose to become a member of the Rajya Sabha.
Narendra Modi’s Case:
Because Mr. Modi is already elected as a member of the Lok Sabha from Vadodara and Varanasi, he will have to step down as CM and resign as the member of the Gujarat Assembly as well as one of the two Lok Sabha seats he has been elected. As per the law, an individual cannot be a member of the Lok Sabha/ Rajya Sabha as well as the Legislative Assembly. The person has to give up his membership of one of the two within 14 days of the notification of the election result by the Election Commission. The same rule applies to a person who is elected from more than one Lok Sabha or Legislative Assembly seat.
The unique case of Narasimha Rao:
The case of the late Narasimha Rao is one of its kind. He had almost retired from politics and did not fight the 1991 Lok Sabha (LS) polls. But the situation took a sharp turn with the assassination of Congress prime ministerial candidate Rajiv Gandhi at Sriperumbudur in Tamil Nadu, where he was campaigning for the same LS elections.
The Congress won the elections and the party proposed Sonia Gandhi to be the PM but she declined the proposal. Then Mr. Rao, who had the support of Ms. Gandhi, was chosen for the job of Prime Minister. Subsequently, he contested a by-election from the Nandyal Lok Sabha constituency in Andhra Pradesh and won with a record margin of over 5 lakh votes as the Telugu Desam Party endorsed his political campaign in the name of “Telugu pride”.
Prime Minister-to-be Narendra Modi is not the first Chief Minister to ascend to the seat of the head of Government of India. The distinction goes to former Karnataka CM H.D. Deve Gowda, who, moved to the post of Prime Minister in 1996.
Mr. Gowda resigned as Chief Minister and gave up his membership of the Karnataka Legislative Assembly after he was named PM. The Constitution of India permits a person, who enjoys the support of the majority of Lok Sabha MPs, to be sworn in as PM without being a member of either the Lok Sabha or the Rajya Sabha.
However, the person has to get elected to either House of Parliament within a period of 6 months. Mr. Gowda chose to become a member of the Rajya Sabha.
Narendra Modi’s Case:
Because Mr. Modi is already elected as a member of the Lok Sabha from Vadodara and Varanasi, he will have to step down as CM and resign as the member of the Gujarat Assembly as well as one of the two Lok Sabha seats he has been elected. As per the law, an individual cannot be a member of the Lok Sabha/ Rajya Sabha as well as the Legislative Assembly. The person has to give up his membership of one of the two within 14 days of the notification of the election result by the Election Commission. The same rule applies to a person who is elected from more than one Lok Sabha or Legislative Assembly seat.
The unique case of Narasimha Rao:
The case of the late Narasimha Rao is one of its kind. He had almost retired from politics and did not fight the 1991 Lok Sabha (LS) polls. But the situation took a sharp turn with the assassination of Congress prime ministerial candidate Rajiv Gandhi at Sriperumbudur in Tamil Nadu, where he was campaigning for the same LS elections.
The Congress won the elections and the party proposed Sonia Gandhi to be the PM but she declined the proposal. Then Mr. Rao, who had the support of Ms. Gandhi, was chosen for the job of Prime Minister. Subsequently, he contested a by-election from the Nandyal Lok Sabha constituency in Andhra Pradesh and won with a record margin of over 5 lakh votes as the Telugu Desam Party endorsed his political campaign in the name of “Telugu pride”.
Pension Payment Order (PPO) to be given soon after retirement to Central Govt employees
The Centre has decided to give Pension Payment Order (PPO) to all central government employees at the time of retirement along with their other dues. This step has been taken to check the delay in disbursal of pension. Currently, the scheme for payment of pensions to central government civil pensioners is implemented through authorised banks. The scheme issued by the Central Pension Accounting Office provides for an undertaking to be submitted by the retiring government servant or pensioner to the pension disbursing bank before commencement of pension.
It has been found that the first payment of pension after retirement gets delayed mainly due to two reasons:-
- Delay in receipt of intimation by the pensioner that pension papers have reached the bank.
- Delay on part of the pensioner in approaching the bank for submission of undertaking.
Now, the pensioner is not required to visit the bank to activate the first payment of pension. The Ministry of Personnel has directed Office of Controller General of Accounts to instruct all Pay and Accounts Offices and all pension disbursing banks to follow its directives. There are about 30 lakh Central government pensioners.
RBI to start managing Telangana’s public debt from June 2, 2014
The Reserve Bank of India (RBI) and the newly created state Telangana have inked a pact according to which the RBI shall carry on the general bankingbusiness of the Government of Telangana, manage its rupee public debt and act as the sole agent for investment of Government’s funds. The agreement is consistent to the Andhra Pradesh Reorganisation Act, 2014.
The Andhra Pradesh Reorganisation Bill 2014, which received Parliament’s approval February 20, 2014, got the Presidential assent in March 2014 and paved the way for the formation of 29th state of India by bifurcating Andhra Pradesh.
The remaining Andhra Pradesh will have 13 districts while Telangana will have 10 districts, including Hyderabad city.
Researchers unravel why olive oil reduces blood pressure
Scientists have discovered why olive oil reduces blood pressure. As per a new research, consuming unsaturated fats, like those in olive oil, along with leafy greens and other vegetables forms a certain kind of fatty acid that lowers blood pressure. These nitro fatty acids are created when consuming spinach, celery and carrots that contain nitrates and nitrites, along with avocado, nuts and olive oils that contain healthy fats.
Nitro fatty acids appear to inhibit an enzyme known as soluble epoxide hydrolase which regulates blood pressure. Scientists can now explain why previous research found that a Mediterranean diet supplemented with extra-virgin olive oil or nuts can reduce the occurrence of cardiovascular problems like stroke, heart failure and heart attacks.
Thus far, it was only known that the Mediterranean diet which consists of lots of vegetables, fish, grains, red wine and fatty nuts and oils is salubrious, there has been little scientific consensus about how or why.
Swiss electors disapprove world’s highest minimum wage, thwart new fighter jets buying plans
The voters in Switzerland turned down the proposals to introduce the world’s highest minimum wage and also blocked spending of $3.5 billion for buying new Gripen fighter jets from Saab. Saab Group (originally Svenska Aeroplan AB, later SAAB) is a Swedish aerospace and defence company was founded in 1937. About 76% voters rejected the proposal made by Swiss union SGB and backed by the Socialist and Green parties for a minimum wage of 22 Swiss francs ($25) per hour.
Around 53% blocked a plan to replace Switzerland’s senescent fleet of fighter jets with 22 Gripen jets from Saab. Had the proposal been accepted, it would have led to job cuts, particularly in remote and structurally weaker regions.
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