Current Affairs Update 7-8 July, 2017

Banking & Financial News

IDFC and Shriram Group to finalise $10 billion mega merger within 90 days

IDFC and the Shriram Group have agreed to finalise within 90 days the merger of financial services
business of the two groups that will create a financial supermarket with offerings from motorcycle
credit to lending for multi-billion dollar power projects.

IDFC Bank managing director and chief executive Rajiv Lall called the proposed merger a 'marriage
made in heaven' while the founder chairman Deepak Parekh said that IDFC gets 'readymade branches
and `hope the marriage happens amid likely regulatory obstacles.

All the operating businesses of the two groups will come together under IDFC Ltd. The retail consumer
centric business of the holding company Shriram Capital - Shriram City Union Finance - will be merged
into IDFC Bank.

The transport finance business will remain a standalone non-banking finance company that would
become a subsidiary of IDFC Limited. The share swap ratio and other details of the merger would be
worked out in the next 90 says.

The merger of the two group of companies will create a financial giant with a market value of at least
Rs. 72,000 crores which will also have businesses like mutual funds and life insurance.

MRP on packaged consumer products to be same from January 1

With an aim to benefit the consumers and protect them from paying different prices at different
locations, the Union Consumer Affairs Ministry has amended the Legal Metrology (Packaged
Commodities) Rules, 2011 (PCR).

The new rules seek to regulate the pre-packed commodities across India.

After this amendment, which was notified on 23 June 2017, the rules will be known as the Legal
Metrology (Packaged Commodities) Amendment Rules, 2017. In accordance with the new rules, which
will come into effect from 1 January 2018, the price of packed goods would no longer depend on
where the product is purchased, may be a mall, a five-star hotel, an airport or a local Kirana store.

Highlights of the amendment

MRP: As per the amended Legal Metrology Rules 2017, the retail sale price of any packed product will
be the Maximum Retail Price (MRP) inclusive of all taxes. The rule will have the provision to round off
the price to the nearest rupee or 50 paise.
Legal provision on MRPs: A new legal provision has been inserted to make sure that no person is able
to declare different MRPs on an identical pre-packed commodity. This provision was inserted with an
aim to curb the possibility of any vendor charging differential prices for the same product.

Size of Display: The new rules also talk about the size of the display on the pre-packed goods. The new
norms say that the sellers will have to enhance the size of letters and numerals for making declarations
about the packaged goods clear to the consumer. The declarations include things like date, month and
year for best before use among others.

e-Commerce Marketplaces: In terms of the e-commerce marketplace, the new rules say that An e-
commerce entity shall ensure that the mandatory declarations as specified, except the month and
year in which the commodity is manufactured or packed, shall be displayed on the digital and
electronic network used for e-commerce transactions. In this term, e-Commerce entities include
companies like Grofers and BigBasket, who stock the inventory. However, e-Commerce entities like
Amazon India and Flipkart who do not own an inventory, the responsibility of the correctness of
declarations will lie in the hands of the manufacturer or seller or dealer or importer. The onus of
ensuring due diligence before dispatching the products, however, will lie with the online
marketplaces.

News related to India and states

India, US, Japan begin Malabar Exercise 2017

India, Japan and the United States on 7 July 2017 began the joint naval exercise Malabar 2017.

Warships, submarines, aircraft and personnel from India, Japan and the US will be participating in the
Malabar exercise in the Bay of Bengal from 7 July to 17. The exercise will feature both ashore and at-
sea training.

The ashore training in Chennai will include professional exchanges on carrier strike group operations,
maritime patrol operations, surface warfare, medical operations, explosive ordnance disposal (EOD),
helicopter operations, and visit, board, search and seizure (VBSS) operations.

The at-sea training will be conducted in the Bay of Bengal and will be focussed on advancing military-
to-military coordination and capacity to plan and execute tactical operations in a multinational
environment.

World News

World Bank launches loan programme for women entrepreneurs

The World Bank on Saturday launched a public-private loan programme to support women
entrepreneurs in developing countries, an initiative championed by U.S. President Donald Trump's
daughter Ivanka Trump.
Initial funding of $325 million for the project includes large donations from Germany, the United
States, Saudi Arabia and the United Arab Emirates, the bank said.

This is going to be what we hope will be a multibillion dollar fund to support women entrepreneurs,
World Bank President Jim Yong Kim said.

The programme will work with governments to improve laws and regulations that are stifling women
entrepreneurs, pushing financial institutions to provide equity to the companies they create, the
bank said.

G20 countries leaders agree for action, targeted exchange of information on terrorism

G20 leaders on 7 July 2017, the first day of G20 Summit in Hamburg, Germany, agreed to facilitate
swift action and targeted exchange of information on terrorism and its financing.

The information exchange that will include operational information-sharing, preventive measures and
criminal justice response will happen between intelligence and law enforcement and judicial
authorities

In a statement released at the end of the first day of the 12th G20 Summit in Hamburg, the member
countries decided to take concrete steps to stop funding of the terror activities.

For this, they called for strengthening measures against the financing of international terrorist
organisations in particular ISIL/ISIS/Daesh, Al Qaida and their affiliates.

The G20 leaders also reaffirmed their commitment to tackle all sources, techniques and channels of
terrorist financing and calls for a swift and effective implementation of UNSCR and the Financial Action
Task Force (FATF) standards worldwide.

In addition to this, the leaders also decided that the private sector will be involved in the global efforts
to counter terror-financing. Seeking to fight radicalization, the G20 group will take measures to
counter terrorist propaganda. Simultaneously, the countries will also seek to promote political and
religious tolerance and social inclusiveness to facilitate reintegration.

The leaders of G-20 also underlined to fight exploitation of internet and social media for propaganda
inciting terrorism and radicalization. Steps would be taken to filter, detect and remove content that
incites terrorists activities.

PM Modi raises issues of terrorism, climate change at BRICS Leaders' Informal Meeting in Hamburg

The leaders of the 5 BRICS nations had an informal meeting on the sidelines of the G20 Summit in
Hamburg, Germany on 7 July 2017. This was in run up to the forthcoming 9th BRICS Summit scheduled
to be held in September 2017 in Xiamen, China.

During the meet, the leaders discussed preparations and priorities for the forthcoming Xiamen BRICS
Summit. In addition, President Xi, the leader of the host country for the September Xiamen BRICS
Summit said he looked forward to welcoming the BRICS leaders.
Prime Minister Narendra Modi who was a participant of the meet mentioned that BRICS has been a
strong voice and needs to show leadership on terrorism and global economy. He stressed that G20
should collectively oppose terrorism financing, franchises, safe havens, support and sponsors.

Referring to reforms in India, including the recent introduction of GST, PM stated that it was necessary
to work together for sustained global economic recovery. He advocated collective voice against the
practices of protectionism, especially in the spheres of trade and movement of knowledge and
professionals.

Modi also reiterated India's commitment to implementing Paris Agreement in letter and spirit and
described its implementation globally as essential for fighting the climate change.

Apart from this, the Prime Minister also called for expeditious action to establish BRICS rating agency
and stated that cooperation on development of Africa should be a priority. He also called for greater
people-to-people exchanges.

Historic Centre of Vienna inscribed on List of World Heritage in Danger

The World Heritage Committee on 6 July 2017 inscribed the Historic Centre of Vienna on the List of
World Heritage in Danger.

The step was taken due to high-rise projects in the middle of the historic city.

The Committee states that the Vienna Ice-Skating ClubIntercontinental Hotel project has failed to
comply fully with previous Committee decisions, notably concerning the height of new constructions,
which will have adverse effects on the Austrian capital.

Vienna is the capital and largest city of Austria and one of the nine states of Austria.

UNESCO declares West Bank city of Hebron as World Heritage Site in Danger

The United Nations Educational, Scientific, Cultural Organization (UNESCO) on 7 July 2017 declared
West Bank city of Hebron a heritage site, an issue which triggered a new Israeli-Palestinian clash.

UNESCO passed an anti-Israel resolution by voting to have the Tomb of the Patriarchs, in the Old City
of Hebron in the West Bank, to be inscribed as a Palestinian World Heritage Site in Danger.

The voting took place along with a secret ballot at the UNESCO World Heritage Committees 41st
annual summit in Krakow, Poland with 12 countries voting in favour of the move, while three opposed
it and six countries abstained.

Generally, votes to inscribe sites onto UNESCOs World Heritage List are usually done by a show of
hands among all the member states. But three countries Poland, Croatia and Jamaica requested a
secret ballot.

UNESCO omits Great Barrier Reef from List of World Heritage in Danger
The World Heritage Committee, during its annual meeting in Poland, in July 2017 decided not to
include the Great Barrier Reef in the List of World Heritage in Danger.

The Committee voted to endorse the Australian Governments Reef 2050 Plan, which includes several
measures designed to protect and manage the ecosystem.

In a draft document later adopted without debate, the World Heritage Committee noted with "serious
concern" coral bleaching along the Great Barrier Reef, and asked for an overall report on the state of
conservation by December 2019.

Appointments

Saima Wazed Hossain appointed as WHO Goodwill Ambassador for Autism in South Asia

Saima Wazed Hossain was on 6 July 2017 appointed as the WHO's Goodwill Ambassador for Autism in
the South-East Asia region. A globally renowned champion for the cause of autism spectrum disorder,
Hossain has been appointed for a period of two years.

In the last one year while championing for the cause of autism for WHO, Hossain facilitated the
'Thimphu Declaration' on autism and other neurodevelopmental disorders at an international
conference in Bhutan in April 2017.

As WHO Goodwill Ambassador, Hossain will be promoting the Thimphu declaration which emphasises
on integrating the needs of autism affected people into national health and socioeconomic
development plans.

Sanjiv Goenka renominated as the Chairman of IIT Kharagpur

Sanjiv Goenka was recently selected as the Chairman of the Board of Governors at the Indian Institute
of Technology Kharagpur.

Goenka will serve as the Chairman of the institute for three years.

Goenka was nominated by the President, Pranab Mukherjee, in his capacity as Visitor of the Institute.

This will be his second stint for Goenka as the Chairman of Board of Governors. He previously served
as the Chairman of the premier institute between 2002 and 2007.

Sports News

22nd Asian Athletics Championships: India on day 1 wins two gold in haul of seven medals
India on 6 July 2017 bagged seven medals including two gold in the 22nd Asian Athletics
Championships held at Kalinga Stadium in Bhubaneswar, Odisha.With these seven medals on the day
one of the championships, India managed to sit at the top position in the medal tally.

The two medals were won by Manpreet Kaur and G Lakhsmanan.

Shot putter Manpreet Kaur opened India's gold medal account with a career second best throw of
18.28m. Her best record was created with is a throw of 18.86m at the Asian Grand Prix in China earlier
in 2017.

On the other hand, long distance runner G Lakhsmanan gave India the second gold with an unexpected
win in men's 5000m race at the athletic meet.

Lists & Indexes

India ranks 23rd among 165 nations in 2017 Global Cybersecurity Index

India ranked a high 23rd out of 165 nations in the 2017 Global Cybersecurity Index (GCI), a global index
that measures the commitment of nations across the world to cybersecurity.

The second Global Cybersecurity Index was released by the International Telecommunication Union
(ITU), the UN telecommunications agency, on 5 July 2017.

India ranked 23rd on the index with a score of 0.683 and has been listed in the maturing category,
which refers to 77 countries that have developed complex commitments to cybersecurity and engage
in cybersecurity programmes and initiatives.

Singapore topped the Global Cybersecurity Index with a 0.92 GCI score.