Daily Current Affairs

Prelims Prominence - October 5, 2017

Economy/Banking

RBI 4TH Bimonthly Policy Review (financial year 2017-18)

By

  • The six member Monetary Policy Committee (MPC) of Reserve Bank of India (RBI)

Decision of MPC

  • Kept repo rate unchanged at 6.0% under liquidity adjustment facility
  • The decision of MPC was consistent with neutral stance of monetary policy in consonance with objective of achieving medium-term inflation target of 4% within a band of +/- 2%, while supporting growth.

Enlighten about some banking terms –

Policy Rates Repo rate

  • It is rate at which RBI lends to its clients generally against government securities.
  • It was unchanged at 6%.

Reverse Repo Rate

  • It is rate at which banks lend funds to RBI.
  • It was unchanged at 5.75%.

Marginal Standing Facility (MSF) Rate

  • It is rate at which scheduled banks can borrow funds overnight from RBI against government securities.
  • It is very short term borrowing scheme for scheduled banks.
  • It was unchanged at 6.25%.

Bank Rate

  • It is rate charged by central bank for lending funds to commercial banks.
  • It was unchanged 6.25%.
  • It influences lending rates of commercial banks.
  • Higher bank rate will translate to higher lending rates by banks.

Cash Reserve Ratio (CRR)

  • It is amount of funds that banks have to keep with RBI.
  • It was unchanged at 4%.
  • The RBI uses CRR to drain out excessive money from system.

Statutory Liquidity Ratio (SLR)

  • It was changed to 19.5% from 20%.
  • It is amount that banks have to maintain a stipulated proportion of their net demand and time liabilities (NDTL) in form of liquid assets like cash, gold and unencumbered securities, treasury bills, dated securities etc.

Regarding 4th bi-monthly policy

  • RBI has indicated rise in inflation and is expected to rise from its current level and range between 4.2-4.6% in second half of this year.
  • It also has indicated a fall in GVA (Gross Value Addition) growth rate.
  • The projection of real GVA growth for 2017-18 has been revised down to 6.7% from August 2017 projection of 7.3%.
  • According to RBI, various structural reforms introduced in recent period will likely be growth augmenting over medium- to long-term by improving business environment, enhancing transparency and increasing formalisation of economy

International

China to build World’s highest power pylon

  • China’s Zhejiang Electric Power Company has started construction of giant power supply pylon, claimed to be world’s tallest, in country’s east Zhejiang Province.
  • The 380-metre tall pylon will be four times height of London’s iconic Big Ben.

Sibir: World’s biggest and most powerful nuclear icebreaker ship launched by Russia

  • Russia launched Sibir (Siberia), the world’s largest nuclear-powered icebreaker ship built under Project 22220 into the water at the Baltic Shipyard in St Petersburg.
  • Sibir is second of three icebreakers of new class of biggest nuclear powered icebreakers ever constructed under Project 22220.
  • The first one was Arktika (Arctic) was put in service in June 2016. Third icebreaker Ural is set to be completed in 2019
  • Russia is only country in world that produces nuclear-powered icebreakers. The new series of icebreakers under Project 22220 are meant to ensure year-round navigation in western Arctic

Swachh Bharat Mission

Ministry of Health ranks first in Swachh Bharat initiative

  • The Union Ministry of Health and Family Welfare was adjudged as best department for its contribution during ‘Swachhta Pakhwada’, an inter-ministry initiative of Swachh Bharat Mission.

Cleanest iconic place in the country

  • Sri Meenakshi Sundareswarar Temple in Madurai has been adjudged the cleanest iconic place in the country under Swachhta Hi Seva (cleanliness is service) programme.

Meenakshi Temple

  • Meenakshi Temple is a historic Hindu temple located on the southern bank of the Vaigai River in the temple city of Madurai, Tamil Nadu, India.
  • It is dedicated to Meenakshi, a form of Parvati, and her consort, Sundareswar, a form of Shiva.
  • The temple forms the heart and lifeline of the 2,500-year-old city of Madurai.

Appointments

Satya Pal Malik sworn-in as governor of Bihar

  • Satya Pal Malik (71) was sworn-in as 35th Governor of Bihar.
  • He was administered oath to office by Chief Justice of Patna High Court Rajendra Menon.
  • He succeeds West Bengal Governor Keshari Nath Tripathi who was holding additional charge of Bihar after the elevation of Ram Nath Kovind as President.

Enlighten about the Constitutional provisions of Governor

Article 153:

  • It says that there shall be Governor for each state.
  • But 7th Constitutional Amendment Act, 1956 facilitated appointment of same person as a governor for two or more states.

Article 156:

  • Governor is appointed by President for term of 5 years but usually holds office during pleasure of President.
  • There is no provision of impeachment, as it happens for the president.

Soumya Swaminathan appointed as Deputy DG of WHO

  • The World Health Organization (WHO) has appointed Dr. Soumya Swaminathan (58) as one of two deputy directors general.
  • This is first time such second-highest position created within WHO and highest post held by Indian in WHO.
  • Dr Swaminathan will replace Dr Anarfi Asamoa-Baah from Ghana

World Health Organization (WHO)

  • The WHO is specialized agency of United Nations that acts as coordinating authority on international public health.
  • It was established in April 1948 and succeeded Health Organization, which was an agency of the League of Nations. It is a member of the United Nations Development Group and its headquarters is located at Geneva.
  • WHO flag features the Rod of Asclepius as a symbol for healing.

Environment & Ecology

Turtle Sanctuary to be set up in Allahabad

  • The Union Ministry of Water Resources has approved project to set up Turtle sanctuary in Allahabad along with River Biodiversity Park at Sangam in Allahabad, Uttar Pradesh under Namami Gange programme.
  • The approved project includes development of River Biodiversity Park at Sangam (confluence of Ganga, Yamuna and mythical Sarasvati Rivers), establishment of Turtle Rearing Centre (Permanent nursery at Triveni Pushp and makeshift annual hatcheries) and awareness about importance of Ganga River

Sagarmala Project

Foundation stone for national waterway on Krishna River laid

  • Vice President M Venkaiah Naidu laid foundation stone to develop Muktyal to Vijayawada waterway stretch on River Krishna as part of National Waterway 4 at Amaravati in Andhra Pradesh.
  • The 82-km inland waterway stretch is Phase-1 of National Waterway-4 developed under Sagar Mala project

National Waterway 4

  • NW-4 in Andhra Pradesh has total length of 2890 km.

It is proposed to be developed in three phases viz.

  • Phase-I: Muktyala to Vijayawada (Krishna River) (82 Km)
  • Phase-II: Vijayawada to Kakinada (Eluru canal & Kakinada canal) and Rajahmundry to Polavaram stretch of Godavari (233 Km) and
  • Phase-III: Commamur Canal, Buckingham canal and balance stretches of Krishna & Godavari Rivers (573km
  • The project will provide efficient logistics solution to boost economic growth of region.
  • It will facilitate development of new capital city Amravati during its early development stage by transporting substantial construction material.
  • ‎It will also help in controlling traffic congestion and pollution. It will help in saving cost of transportation.
  • Ro-Ro services on the route will provide intra-city transportation of passengers and vehicles
  • It will improve connectivity to tourist and pilgrimage places

State Government Schemes

Karnataka Government launches Mathru Poorna scheme

  • The Karnataka Government has launched Mathru Poorna Scheme to meet nutritional needs of pregnant and lactating women in rural areas of state.
  • Under this scheme, pregnant and lactating poor women in rural areas will get one nutritious meal daily for 25 days in a month.
  • The scheme will be implemented through anganwadis in State.
  • Under it, nutritious food will be provided for 15 months, from start of pregnancy up to six months after delivery.
  • Along with meal, Iron Folic Acid (IFA) tablets will be administered and gestational weight monitoring will be ensured for pregnant women