7TH JANUARY CURRENT AFFAIRS

Contents:
New Satellites will help Gaganyaan Crew
RBI gives in-principle nod to Shivalik Mercantile to convert to SFB
Convergence India
Stressed urban cooperative banks to face PCA like curbs
Services sector activity growth at 5 month high
NEW SATELLITES WILL HELP GAGANYAAN CREW
Why in news?
India plans to ring in its own era of space to space tracking and communication of its space assets this year by putting up a new satellite series called the Indian Data Relay Satellite System (IDRSS)

More about IDRSS
The IDRSS is planned to track and be constantly in touch with Indian satellites, in particular those in lower earth orbits which have limited coverage of Earth.
Uses of IDRSS
In the coming years, it will be vital to Indian Space Research Organisation (ISRO), whose roadmap is dotted with advanced LEO missions such as space docking, space station, as well as distant expeditions to moon, Mars and Venus.
It will also be useful in monitoring launches, according to K. Sivan, ISRO Chairman
First beneficiaries of IDRSS will be the crew members of Gaganyaan.
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RBI GIVES IN-PRINCIPLE NOD TO SHIVALIK MERCANTILE TO CONVERT TO SFB
Uttar Pradesh based Shivalik Mercantile Co-operative Bank Ltd to convert to a small finance bank (SFB), becoming the first urban cooperative bank (UCB) to make the transition
The UCB will get 18 months to comply with the requirements under the scheme, which state that banks with a minimum net worth of 50 crore and capital to risk (weighted) assets ratio of 9% and above are eligible to apply for voluntary transition to SFB
The SFBs are also required to maintain minimum capital adequacy ratio of 15% of its risk weighted assets (RWA) on a continuous basis and increase the minimum paid-up voting equity capital to 200 crore within five years of the date of commencement of business
In September 2018, RBI had come out with the scheme for voluntary transition of primary UCBs into small finance banks.
Under the scheme, the promoters are required to be Indian residents, with 10 years
of experience in banking and finance. Promoter or promoter groups should conform to the definition of the Sebi (Issue of Capital & Disclosure Requirements) regulations, 2009 and RBI guidelines on fit and proper.
CONVERGENCE INDIA
Launched in 1992, the Convergence India series of expo is credited as India s leading Technology Show.
It started as a communications and ICT event and it has now become a mega expo showcasing convergence of technologies covering Communications, Digital Broadcast, Internet of Things, AR, VR, Artificial Intelligence, Robotics, Embedded Technology, Mobile Devices & Accessories, Gaming & Entertainment as well.
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STRESSED URBAN COOPERATIVE BANKS TO FACE PCA LIKE CURBS
Why in News?
The Reserve Bank of India (RBI) has decided to impose restrictions on urban cooperative banks (UCBs) for deterioration of financial position, in line with the prompt corrective action (PCA) framework that is imposed on commercial banks
RBI s action includes cancellation of banking license
Under this revised Supervisory Action Framework (SAF), UCBs will face restrictions for worsening of three parameters
That is when net nonperforming assets exceed 6% of net advances.
When they incur losses for two consecutive financial years or have accumulated losses on their balance sheets.
If capital adequacy ratio falls below 9%.
RBI said actions such as imposition of all inclusive directions under Section 35A of the Banking Regulation Act, 1949, and issue of show cause notice for cancellation of banking license may be considered when continued normal functioning of the UCB is no longer considered to be in the interest of its depositors/public.
SERVICES SECTOR ACTIVITY GROWTH AT 5 MONTH HIGH
India s services sector activity gained momentum and touched a five month high in December, supported by an uptick in new business orders that boosted output and employment
IHS Markit India Services Business Activity Index improved from 52.7 in November to 53.3 in December 2019, highlighting the second strongest rate of increase in output in over a year, after July 2019.