Yuan devaluation and Federal interest hike will have only a transient impact on Indian Economy : Arun Jaitley
- Finance Minister Arun Jaitley termed the devaluation of Yuan and the hike in the Federal interest rates will only a transient impact.
- He also stated that only the structure of the economy and domestic policies dictates changes in currency and markets.
- This statement comes post the G-20 meeting of finance ministers and Central bankers from most powerful countries in world.
- The finance minister strongly pitched for global safety nets to address concerns over volatility in currency and stock markets, a demand that came against the backdrop of the economic shocks triggered by the Chinese devaluation of yuan.
- These financial nets should be strong enough to spread a financial contagion from happening keeping in mind the ASEAN crisis where the Thai Baht collapsed after a US Federal reserve hike.
- He asserted that India is on a “sound footing” as manufacturing and services sectors have begun picking up due to the pro-business policies of the Modi led government.
TRAI proposes compensation for call drops
- Telecom Regulatory Authority of India(TRAI) is seeking suggestions for compensating customers for deficient services on mobile phones .
- Prime Minister Narendra Modi had personally asked TRAI to look into the issue.
- This is occurring at a time of rising phone bills and in a digitized world.
- The main cause is lack of network infrastructure to sustain such a large mobile base.
- Several Telecom Service Providers in other countries offer a credit of talk time for a dropped call to customers.
Centre announces One Rank One Pension(OROP) scheme.
- The Centre on Sep 5 announced the OROP scheme which finally fullfilled a long standing demand of military veterans.
- This issue has gone pending for over 40 years where pensions for veterans of same rank was different owing to different dates of retirement .
- The veterans however want the revision which accounts for currency and price change to be done annually instead of every 5 years.
- The pension for veterans who have chosen voluntarily retirement will be comparatively lesser as Defence Minister Manohar Parrikar feels that if the pay scale was the same lot of people would opt for voluntary retirement and it would lead to a decrease in the capability of armed forces.
- Following this announcement , the protesting veterans who although did not agree with some of the finer details called off the hunger strike and advocated towards peaceful resolution of the rest of the matter.
- According to the package , retired military officers will get a pension hike ranging from Rs 8,000 to Rs 22,000 per month, while jawans and junior commissioned officers will get Rs 2,200 to Rs 9,000.
Reserve Bank of India crisis fund short of target.
- According to the RBI annual report , contingency funds with the Reserve Bank of India (RBI), used in case of unforeseen shocks, have fallen to 8.4 per cent of total assets, against a target of 12 per cent.
- For the last two years, the RBI has made no transfers to its Contingency Fund or its Asset Development Fund.
- The capital requirements of a central bank can vary considerably depending on various factors. The wider its responsibility , the more risks it will take and hence it would need more capital.
- A central bank may require recapitalisation, precisely at a time when the fiscal position is under strain, say, due to a financial crisis. For example, if a systemically important bank goes bankrupt, then the RBI has to take its losses onto its own balance sheet
- The RBI has transferred most of its profits to the centre without keeping any amount for itself.
RTI applicants to get protection against legal action
- In a landmark decision , the Kerala High Court announced that an applicant under the Right to Information Act gets immunity from legal proceedings against him/her based on the statements in application.
- RTI activists and whistleblowers are subjected to a lot of harassment and threats by corrupt government authorities and this move comes as a relief to the crusaders.
- The judiciary has asked the centre to look into implementing witness protection schemes ,the lack of which has resulted in the deaths of many righteous RTI activists and honest IAS officers.
Railways and ISRO tie up for improving rail safety.
- Indian railways will join hands with Indian Space Research Organisation (ISRO) for improving rail safety and enhancing efficiency.
- A massive exercise of GIS [geographical information systems] mapping of the entire rail route and assets including buildings, land, workshops and other facilities in the network using geospatial technology will be undertaken.
Geospatial technology involves a combination of GPS (global positioning systems), GIS(Geographic Information System), and RS (remote sensing) technologies. The official said geospatial services will be available from satellite-assisted navigational support through the GPS aided Indigenously developed geo-augmented navigation (GAGAN) system of ISRO.
The satellite images will also be used for geo-fencing of stations for paperless ticketing system.
- The technology is also expected to be used for tracking trains for disseminating information about their movement on real time basis which will be a great help to passengers. Currently, train movements are tracked manually.
Hindi writer to return Sahitya Akademi award.
- Hindi writer Uday Prakash on Friday decided to return his Sahitya Akademi award in protest against the murder of Kannada scholar and rationalist M.M. Kalburgi.
- He will officially communicate his decision to the Akademi and return the award money of Rs.1 lakh and the citation next week when he returns to the Capital.
- The murder of M.M Kalburgi by communal elements perpetrating a hateful ideology has prompted rationalists across the country in requesting the government to fester an environment that encourages free thinking and free speech.
GK Questions of the day
1.In the 19th century , a South American general took his troops across the Andes and liberated Chile from Spanish colonial rulers. The following year , he crossed over with his troops into the upper Andes regions of Peru and liberated them as well. He also helped Brazilian locals in asserting their independence from Portuguese rule.Who was this general??
1) San Martin 2)Simon Bolivar 3)Jorge Mendes 4) El Chapo
2. Despite having a hot summer , the winters in the US in many locations are severely cold with occurrences of blizzards whereas despite being located in a similar latitude , India has no blizzards in its interior regions and in winters enjoy pleasant temperatures. Why ??
1) The temperature moderating effects of the Indian Ocean 2)Himalayas blocks the cold polar winds from central asia 3) Due to the withdrawal of the easterly jet 4)None of the above
3. The Federal Bank of USA to mitigate the damaging effects of 2009 recession went in for a period of Quantitative easing. What is Quantitative Easing or QE ??
1)Selling government bonds at a cheap price 2) Buying government bonds from banks and financial institutions well before their maturity period 3)Making interest rates cheaper 4) None of the above
4) It is one of the most strategic locations in the world. Built in the 20th century it served as a means to connect the Red Sea and the Mediterranean. Initially it was held by the British and later it was taken over forcibly by local authorities. The many wars in this region like the Yom Kippur war were mainly to control this strategic point through which huge amount trade and commerce happens on a daily basis. What is this location??
1) Panama Canal 2) Suez Canal 3)Buckingham Canal 4) Indira Gandhi Canal
Answers for questions of 4th september
1) Infant Mortality rate
2) China . It is located on the other side of Gilgit Baltistan region of Himalayas
4)Money supply decreases.