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29th August Current Affairs

Contingency Fund (CF) of the national bank

Why in News:

The Reserve Bank of India (RBI) has held an incredible measure of Rs 73,615 crore inside the RBI by moving it to the Contingency Fund (CF) of the national bank.

Details:

Therefore, the CF has expand to another high of Rs 264,034 crore.

Under what arrangements does the focal government get cash from the RBI?

According to Section 47 of the RBI Act, benefits or overflow of the RBI are to be moved to the administration, in the wake of making different possibility arrangements, open approach order of the RBI, including money related steadiness contemplations.

The RBI’s exchange this year is according to the monetary capital system (ECF) embraced by the RBI board a year ago.

What is the Contingency Fund (CF)?

This is a particular arrangement implied for meeting surprising and unanticipated possibilities.

This remembers deterioration for the estimation of protections, dangers emerging out of fiscal/conversion scale strategy tasks, foundational dangers and any hazard emerging by virtue of the unique duties charged upon the Reserve Bank.

This sum is held inside the RBI.

RBI’s hazard arrangement accounts:

The national bank’s primary hazard arrangement accounts are Contingency Fund, Currency and Gold Revaluation Account (CGRA), Investment Revaluation Account Foreign Securities (IRA-FS) and Investment Revaluation Account-Rupee Securities (IRA-RS). Together now they add up to Rs 13.88 lakh crore.

What’s the CGRA account?

The Currency and Gold Revaluation Account (CGRA) is kept up by the Reserve Bank to deal with cash chance, loan fee hazard and development in gold costs.

Unrealised increases or misfortunes on valuation of unfamiliar money resources (FCA) and gold are not taken to the pay account yet rather represented in the CGRA.

CGRA gives a support against conversion standard/gold value changes. It can go under weight if there is an energy about the rupee opposite significant monetary standards or a fall in the cost of gold.

What are IRA-FS and IRA-RS accounts?

The unrealised additions or misfortunes on revaluation in unfamiliar dated protections are recorded in the Investment Revaluation Account Foreign Securities (IRA-FS).

Thus, the unrealised increases or misfortunes on revaluation is represented in Investment Revaluation Account-Rupee Securities (IRA-RS).

Armed Forces Tribunal

Why in News:

The Delhi-based chief seat of the Armed Forces Tribunal has started becoming aware of issues relating to territorial seats through video conferencing.

About AFT:

It is a military court in India.

It was built up in 2009 under the Armed Forces Tribunal Act, 2007.

The demonstration was passed based on suggestion of 169th Law Commission Report and different Supreme Court orders.

Powers and capacities:

To settle Disputes and grievances regarding commission, arrangements, enrolments and states of administration in regard of people subject to the Army Act, 1950, The Navy Act, 1957 and the Air Force Act, 1950.

Sythesis:

Each Bench involves a Judicial Member and an Administrative Member.

Legal Members are resigned High Court Judges.

Regulatory Members are resigned Members of the Armed Forces who have held the position of Major General/proportionate or above for a time of three years or more or Judge Advocate General (JAG), who have held the arrangement for at any rate one year.

Who can be an administrator?

The individual holding the workplace of administrator of AFT more likely than not been either a resigned judge of Supreme Court or a Retired boss equity of high court.

Exemptions:

Paramilitary powers including the Assam Rifles and Coast Guard are outside the council’s domain.

Rearward is viewed as a criminal court regarding Indian Penal Code, and Code of Criminal Procedure.

Bids against the choice of the AFT can be taken distinctly in Supreme Court. High Courts are not permitted to engage such interests.

41st GST Council meet

In News:

The finance Minister Nirmala Sitaraman chaired the 41st GST Council meet. The council discussed states’ compensation and revenue losses.

Details:

The following were the key discussions at the 41st GST Council meet

GST Compensation Options:

The Central Government has given two compensation options to the states

What is GST Compensation?

As a part of GST reforms, GST Compensation Cess was introduced through GST (Compensation to States) Act, 2017. The cess was levied on inter and intra state supply of goods such as coal, tobacco, aerated drinks and automobiles. For 5 years. The collected cess is to go to the loss incurring states on the basis on a formula as compensation.

What is the current issue?

In the first four months of this fiscal year, the compensation cess collected was 33% less than that of 2019. It was Rs 21,940 crores. However, the GST Compensation Cess requirement stands at RS 26,000 crores per month. This has increased due to COVID-19 pandemic.

The compensation to the states are to be paid from the GST Compensation Funds. The cess collections are also deposited to these funds. Now, the issue is that the act is silent on how a shortfall is to be tackled when the fund falls short. Currently, fund shortage is the major issue that was raised between the state and the centre at the GST council meet.

Previous GST meet:

In the previous GST meet, the council decided to waive off fees for late filing returns between July 2017 and January 2020. This was to minimize the impact of COVID-19 crisis on MSMEs (Micro, small and Medium Enterprises).

PRATHEEKSHA

In News:

Around thirty fishermen lose heir lives at sea in a year due to accidents during fishing. Under this context, the Government of Kerala has launched Marine Ambulance services to provide more efficient rescue.

Details:

The Marine Ambulance specializes in providing first aid and also rescue operations. The ambulance is capable of providing critical care to up to five people simultaneously. The ambulances run on Scania engines and can run at maximum speed of 14 knots. The ambulance has been designed under the standards of Indian Registry of Shipping. The other marine ambulances that are to be deployed are Pratyasha and Karunya. The ambulances to be deployed are as follows

Corporate Social Responsibility Funds:

In India, the concept of Corporate Social Responsibility is governed by clause 135 of the Companies act. The CSR provisions are applicable to companies whose annual turn over is more than Rs 1,000 crores. The provisions under the act makes its mandatory for the companies to set up a CSR committee that will recommends CSR policies and also monitor from time to time.

The companies should spend 2% of their average net profit on CSR activities. The activities under taken by CSR are specified as follows

Injeti Srinivas Committee:

The committee was set up under Secretary of Corporate Affairs Ministry to make recommendations on Corporate Social Responsibility.

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