CURRENT AFFAIRS


27th Aug, 2020

 

More details on RBI’s annual report 2019-20

Temporary prohibition on loan instalments, postponement of interest payments and restructuring initiatives taken by RBI during Covid-19 pandemic have prevented a big spike in NPAs till now.

Bank credit growth has slowed significantly in 2020 despite the RBI’s efforts to infuse liquidity into the banking system.

Frauds reported by banks of Rs.1,00,000 and above value have more than doubled (28% increase) in FY 2019-20.  

The public sector banks accounted for most of these frauds (80%).

The rural demand fared better than urban areas due to the increased pace of kharif sowing. 

In Hospitality, hotels and restaurants, airlines and tourism sectors, employment losses are more severe than in other areas.

Inflation may remain high in the second quarter of 2020-21. 

Currency notes of ₹2,000 denomination were not printed in 2019-20 and the circulation of these notes have declined over the year. 

Compared to the previous year, there was an increase in counterfeit notes detected in the denominations of ₹10, ₹50, ₹200 and ₹500. 

Counterfeit notes detected in the denominations of ₹20, ₹100 and ₹ 2,000 declined.

Suggestions Made by RBI:

Targeted public investment along with asset monetisation and privatisation of major ports.

Apex authorities to drive structural reforms and speedier implementation of infra projects.

Recapitalisation of public sector banks,.

Deep-seated and wide-ranging reforms to regain losses.


 

RBI announces special OMO of Rs 20,000 crore

The RBI will conduct simultaneous purchase and sale of government securities under Open Market Operations (OMO) for an aggregate amount of ₹20,000 crore in two tranches.

It involves purchasing government securities of longer maturities and selling equal amount of securities of shorter maturities.

Open market operations 

It is the sale and purchase of government securities and treasury bills by RBI. 

Objective: To regulate the money supply in the economy.

When the RBI wants to increase the money supply in the economy, it purchases the government securities from the market. 

It sells government securities to suck out liquidity from the system.

Under OMO, RBI does not directly deal with the public.


 

Global tourism lost $320 billion in five months: U.N.

According to the United Nations, the global tourism industry has lost $320 billion in exports in the last five months and more than 120 million jobs are  at risk. 

Export revenues from tourism could fall by $910 billion to $1.2 trillion in 2020. 

It could reduce global GDP by 1.5% to 2.8%.

Jobs in associated sectors, including food service, that provide employment for 144 million workers worldwide are also at risk.

Tourism is the third-largest export sector of the global economy, behind fuels and chemicals. 

It is an emergency situation particularly for many small island developing states and African countries.


 

Panel to conserve Edakkal caves constituted 

A nine-member expert committee has been constituted to conduct a detailed study on the present state of the renowned Edakkal caves on the Ambukuthi hills in Wayanad district, Kerala.

The neolithic petroglyphs on the cave walls need to be protected from illegal constructions, mining, and urbanisation.

The Edakkal caves are believed to be camping shelters of the Neolithic community. 


 

Namath Basai: A unique programme in Kerala

Namath Basai is a unique programme being carried out in Attappady, Kerala. 

Under it, tribal children are taught in their mother tongue.

The programme is being implemented by the Samagra Shiksha Kerala (SSK).

  • SSK is a programme for the school education sector (pre-school to class 12).
  • Aim: To improve school effectiveness. 

It offers pre-recorded classes through a YouTube channel. 

It is available in three tribal languages of the Irula, Muduka and Kurumba tribes.

It is being introduced in tribal belts of Wayanad and Idukki as well. 

Classes are offered in the Oorali, Mutuvan and Paniya languages in Idukki. 

Kurumba Tribe

Popularly known as: Mala Pulayans, Hill Pulayans and Pamba Pulayans.

Traditional occupation : Foraging and shifting cultivation. 

Art of body tattooing.

Skilled in manufacture of baskets and mats

Religion: Animism (belief in spirituality of objects, places, and creatures) and Totemism (Worship of any species of plants or animals thought to possess supernatural powers)

Irula or Irular Tribe

Occupation: Agriculturists

Grow Paddy, Ragi, dhal, plantains, chillies and turmeric

Religion: Majority worship Vishnu (Rangaswami and Siva). Some worship the tiger and practice animism.

Mudugars or Muduka tribe

Have social divisions at kal (clan) level.

Traditional Occupation: Food gatherers and hunters. 

Religion: Hinduism (Worship Shiva) 


 

BRICS 5G Innovation Base

BRICS 5G innovation base has been proposed by China.

Objective: To take forward 5G and Artificial Intelligence (AI) cooperation BRICS countries (Brazil, Russia, India, China and South Africa).

Due to ongoing tensions between India and China, India is reluctant to join the programme while other countries are willing to allow China’s participation in their 5G networks.

  • India has made clear that a return to normalcy cannot be possible while tensions along the Line of Actual Control remain unresolved.
  • India has also recently joined the ‘Global Partnership on Artificial Intelligence (GPAI)’ as a founding member.

Russia has agreed to work with China on 5G.

In South Africa, Huawei is providing services to provide 5G networks.

Brazil has allowed participation of Huawei in 5G trials.

About BRICS

BRICS is an association of Brazil, Russia, India, China and South Africa.

All are members of G20.

Represent over 3.1 billion people, 41% of the world population.

As of 2018, BRICS have US $40.55 trillion (32% of World’s GDP PPP). 

Bilateral relations among BRICS nations are conducted on the basis of non-interference, equality, and mutual benefit.

There are two components that make up the financial architecture of BRICS:

  • New Development Bank (NDB) (BRICS Development Bank) 
  • Contingent Reserve Arrangement (CRA).

 






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