Current Affairs on Finance

In order to place an overall gauge for the Indian stock market, which new S&P BSE Index was launched on 16 April 2015 which will cover over 700 listed stocks representing over 95 percent of market capitalisation?: Allcap Index

Explanation: Asia Index Private Limited, a joint-venture between S&P Dow Jones Indices and BSE, has launched the S&P BSE AllCap index and 18 other indices. Investors in India and globally want a diversified way of measuring market movements which has a wider coverage of companies that is in line with global practices. Thus the latest launches will provide investors the much-needed set of tools to make the most of the Indian equity market. The new index will further be divided into five size- based indices including LargeCap, MidCap and SmallCap using total market capitalisation, and ten sector-based sub-indices along with certain existing indices will be replaced by the new ones. The ten sector-based sub-indices are basic materials, consumer discretionary goods and services, energy, finance, FMCG, healthcare, industrials, IT, telecom and utilities. The new indices are expected to provide better representation of these industries with respect to size and sector.

The Reserve Bank of India (RBI) on 17 April 2015 came out with which important proposal in regards to term deposits?: Allow banks to offer differential interest rates for term deposits

Explanation: RBI in its sixth bi-monthly monetary policy review in February 2015, had decided to introduce the feature of early withdrawal facility in a term deposit as a distinguishing feature for offering differential rates of interest. Therefore, RBI on 17 April 2015 allowed banks to offer differential interest rates, based on whether their term deposits are with or without a premature withdrawal facility. Liquidity or ease of withdrawal, touted as the biggest advantage of bank fixed deposits (FDs), would get restricted. However, according to RBI’s proposal, all term deposits of individuals held singly or jointly of Rs 15 lakh and below should have such a facility. Banks have also been allowed to offer deposits without the option.

As per the draft regulations released by the Insurance Regulatory and Development Authority of India (IRDA), what would be the maximum sum assured for life insurance policies sold through common service centres (CSCs)?: Rs. 2 lakh

Explanation: The common service centre is set up under the national e-governance plan, Thus about 150,000 CSCs are functioning under different names in different states.  The common service centre (CSC) platform is currently being used by citizens to access and pay for the services offered by multiple government agencies and private sector players. The IRDA has now proposed a maximum sum assured of Rs. 2 lakh for life insurance policies sold through CSCs though motor insurance would be allowed to exceed this limit.

As per the draft regulations released by the Insurance Regulatory and Development Authority of India (IRDA), what would be the maximum sum assured for life insurance policies sold through common service centres (CSCs)?: Rs. 2 lakh

Explanation: The common service centre is set up under the national e-governance plan, Thus about 150,000 CSCs are functioning under different names in different states.  The common service centre (CSC) platform is currently being used by citizens to access and pay for the services offered by multiple government agencies and private sector players. The IRDA has now proposed a maximum sum assured of Rs. 2 lakh for life insurance policies sold through CSCs though motor insurance would be allowed to exceed this limit.

In order to place an overall gauge for the Indian stock market, which new S&P BSE Index was launched on 16 April 2015 which will cover over 700 listed stocks representing over 95 percent of market capitalisation?: Allcap Index

Explanation: Asia Index Private Limited, a joint-venture between S&P Dow Jones Indices and BSE, has launched the S&P BSE AllCap index and 18 other indices. Investors in India and globally want a diversified way of measuring market movements which has a wider coverage of companies that is in line with global practices. Thus the latest launches will provide investors the much-needed set of tools to make the most of the Indian equity market. The new index will further be divided into five size- based indices including LargeCap, MidCap and SmallCap using total market capitalisation, and ten sector-based sub-indices along with certain existing indices will be replaced by the new ones. The ten sector-based sub-indices are basic materials, consumer discretionary goods and services, energy, finance, FMCG, healthcare, industrials, IT, telecom and utilities. The new indices are expected to provide better representation of these industries with respect to size and sector.

Which private sector bank would become the first bank from India to have its mobile banking application (app) made available on the Apple Watch a latest product from Apple Inc. and will be officially released during April 2015?: HDFC Bank

Explanation: “WatchBanking” is the name given to new Mobile application which makes HDFC the first bank and Indian company to launch an app for the Apple Watch. The App is due to launch in India on 24 April 2015. According to the information released by HDFC Bank, the bank is probably the fourth banking entity in the world to have such an app and the first Indian bank to have its app on the Apple Watch.