PIB – November 08 , 2019


GS- 2 Paper

Topic- Statutory, regulatory and various quasi-judicial bodies.

Financial Stability and Development Council (FSDC)

Context

FSDC reviewed the current global and domestic macro-economic situation and financial stability and vulnerabilities issues.

About FSDC

  • Financial Stability and Development Council (FSDC) is an apex-level body constituted by the government of India.
  • The idea to create such a super regulatory body was mooted by the Raghuram Rajan Committee in 2008.
  • The Financial Stability and Development Council (FSDC) was constituted in December, 2010.
  • FSDC is an autonomous body dealing with macro prudential and financial regularities in the entire financial sector of India.
  • An apex-level FSDC is not a statutory body.
  • No funds are separately allocated to the Council for undertaking its activities.

Objective

  • The FSDC was set up to strengthen and institutionalise the mechanism for maintaining financial stability, enhancing inter-regulatory coordination and promoting financial sector development.

Composition of the FSDC

Chairperson- The Union Finance Minister of India

Members

  • Governor Reserve Bank of India (RBl),
  • Finance Secretary and/ or Secretary, Department of Economic Affairs (DEA),
  • Secretary, Department of Financial Services (DFS),
  • Secretary, Ministry of Corporate Affairs,
  • Secretary, Ministry of Electronics and Information Technology,
  • Chief Economic Advisor, Ministry of Finance,
  • Chairman, Securities and Exchange Board of India (SEBI),
  • Chairman, Insurance Regulatory and Development Authority (IRDA),
  • Chairman, Pension Fund Regulatory and Development Authority (PFRDA),
  • Chairman, Insolvency and Bankruptcy Board of India (IBBI),
  • Additional Secretary, Ministry of Finance, DEA, will be the Secretary of the Council,
  • The Chairperson may invite any person whose presence is deemed necessary for any of its meeting(s).

Recently, the government through a gazette notification, had included ministry of electronics and information technology (MeitY) secretary in the FSDC in view of the increased focus of the government on digital economy

Functions

The Council deals with issues relating to –

  • Financial Stability
  • Financial Sector Development
  • Inter-Regulatory Coordination
  • Financial Literacy
  • Financial Inclusion
  • Macro prudential supervision of the economy including the functioning of large financial conglomerates
  • Coordinating India’s international interface with financial sector bodies like the Financial Action Task Force (FATF), Financial Stability Board (FSB)and any such body as may be decided by the Finance Minister from time to time.

GS- 2 Paper

Topic-  Important aspects of governance, transparency and accountability, e-governance applications.

Documentation Identification Number (DIN) system

Context

The Documentation Identification Number (DIN) system of Central Board of Indirect Taxes (CBIC) will come into existence from 8th November 2019.

About Documentation Identification Number (DIN) system

  • The Central Board of Direct Taxes (CBDT) has launched a computer-generated Document Identification Number (DIN) to ensure greater transparency and accountability in tax administration.
  • Document identification number (DIN) is the new system of identification number that Income tax department has introduced for the taxpayers.
  • It will be applied to all kind of communications from Income Tax (IT) Department, whether it is related to investigation, assessment, rectification, appeals and penalty among other things.
  • The DIN system will enable every CBDT communication will have to have a documentation identification number.
  • This intends to insure proper audit trail of such communication.
  • Any communication from IT Department without a computer-generated DIN, be it a notice, letter, order and summon or any other correspondence, would be treated as invalid and shall be deemed as if it has never been issued.
  • Also, all such communications with DIN would be verifiable on e-filing portal and no communication would be issued manually without DIN.
  • The only exceptional circumstances is in the case if the communication is issued manually and it would have to be uploaded and regularised on the system portal within 15 days of its issuance.

Benefits

  • The DIN system would ensure greater accountability and transparency in tax administration.
  • Earlier there have been instances where it was not possible to maintain the audit trail of the manually issued communication which caused inconvenience to taxpayers sometime.
  • This development would also help taxpayers detect fake notices and letters as the notice would be verifiable on e-filing portal of department.

Central Board of Direct Taxes (CBDT)

  • CBDT is a statutory authority that functions under the Central Board of Revenue Act, 1963.
  • It is a part of the Department of Revenue in the Ministry of Finance.
  • CBDT provides inputs for policy and planning of direct taxes in India and is also responsible for the administration of direct tax laws through the Income Tax Department.

GS- 2nd Paper

TopicImportant International institutions, agencies and fora- their structure, mandate.

SCOJTEX- 2019

Context

A four-day joint exercise (SCOJTEX- 2019) on urban earthquake search and rescue of the member nations of the Shanghai Cooperation Organisation, organised by NDRF.

About

  • India is hosting 10th meeting of Heads of Departments of disaster prevention of SCO member states.
  • National Disaster Response Force (NDRF)under the aegis of Ministry of Home Affairs (MHA) is hosting the Shanghai Cooperation Organization (SCO) Joint Exercise on Urban Earthquake Search & Rescue (SCOJTEX)-2019.
  • SCOJTEX-2019 is being organized in two phases in Delhi and NCR.

Participants

  • There will be participants from all eight SCO member countries — China, India, Kazakhstan, Kyrgyzstan, Pakistan, Russia, Tajikistan and Uzbekistan.
  • Representatives from the International Search & Rescue Advisory Group, Asian Coordination Centre for Humanitarian Assistance, Brazil, Mongolia and South Africa have been invited as observers.

Objectives of the SCOJTEX-2019

  • The main focus of Shanghai Cooperation Organisation Joint Exercise on Urban Earthquake Search and Rescue (SCOJtEx) will be to test the region’s preparedness to activate inter- governmental interaction for immediate response.

Significance

  • The National Disaster Response Force (NDRF) is hosting the exercise with the aim to rehearse disaster response mechanisms and share knowledge, experience and technology.
  • This exercise will also provide an opportunity to enhance coordination and cooperation as it involves multi-agency operations.
  • The meeting will provide a platform to delegates to discuss types of events, modalities, venues, protocol and requirement etc for smooth conduct of main exercise.

GS- 2 Paper

Topic-  Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.

BIMSTEC Conclave of Ports

Context

The first ever BIMSTEC Conclave of Ports is being held at Vishakhapatnam.

About

  • The Ministry of shipping is hosting the first ever BIMSTEC Ports’ Conclave at Vishakhapatnam in Andhra Pradesh.

Significance

  • The conclave is expected to explore the possibility of increasing economic cooperation by furthering EXIM trade and coastal shipping.
  • The Conclave will also encourage Cruise Tourism.
  • BIMSTEC nations with diverse historical and cultural heritages are ideal places to develop Cruise Tourism.
  • It will also discuss on various investment opportunities, best practices adopted for productivity and safety at Ports.

About BIMSTEC

  • The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) is an international organization.
  • It was formed in 1997 in an effort to integrate the region.
  • It is headquartered in Dhaka, Bangladesh.
  • Founding countries were Bangladesh, India, Sri Lanka and Thailand.
  • Myanmar, Nepal and Bhutan joined the group later.
  • BIMSTEC is a bridge between South Asia and Southeast Asia, as it has five countries from South Asia and two from ASEAN.
  • The objective of BIMSTEC – is to harness trade and accelerated growth with mutual cooperation in different areas of common interest by utilising the regional resources and geographical advantage

For Prelims

Cyclone ‘Bulbul’

Context

To review the preparedness to deal with the situation in view of cyclone storm ‘Bulbul’ High level meeting was held.

Highlights

  • Cyclone Bulbul is steadily gathering intensity over the Bay of Bengal and is predicted to soon turn into a very severe cyclonic storm.
  • Cyclone Bulbul will head towards West Bengal and Bangladesh
  • Cyclone Bulbul is the 7th named storm of this cyclone season
  • Cyclone Bulbul is expected to bring rainfall over the Andaman and Nicobar Islands, north coastal Odish and coastal West Bengal.

7th Named Storm

  • Cyclone Bulbul, whose name was contributed by Pakistan, is the seventh the series of named cyclones of this season.

The season has seen

  • Cyclone Pabuk (South China Sea-Andaman Sea),
  • Cyclone Fani (Bay of Bengal),
  • Cyclone Vayu (Arabian Sea),
  • Cyclone Hikka (Arabian Sea),
  • Cyclone Kyarr (Arabian Sea) and
  • Cyclone Maha (Arabian Sea).

No Money for Terror’ Ministerial Conference

Highlights

  • ‘No Money for Terror’ Ministerial Conference was held in Melbourne, Australia.
  • India would host the next ‘No Money For Terror’ Conference in 2020.